Financial11 bit studios
Annual Report of 11 bit studios S.A. for 2016
1 Mar 201786 pages~205 min full read
11 bit studios achieved record financial performance in 2016 with 27.02 million PLN in consolidated revenue—a 16.6% increase—and a net profit of 12.93 million PLN, driven by the sustained monetization of This War of Mine.
See it on page 61The company is highly export-dependent, generating 98.6% of its revenue outside Poland, with the United States accounting for 77.8% of sales and China emerging as the second-largest market.
See it on page 60R&D investment doubled to 5.4 million PLN in 2016 to fund the development of the high-budget title Frostpunk, the creation of a second internal development team, and the expansion of the publishing division.
See it on page 2The company maintains a debt-free balance sheet with 29.11 million PLN in cash and equivalents, supporting a strategic transition toward a multi-project model and the discontinuation of the Games Republic distribution platform.
See it on page 65Market confidence in the company grew significantly, resulting in a 108% increase in stock price and inclusion in the sWIG80 index.
See it on page 65Management identified currency fluctuation as a primary financial risk, as approximately 90% of the company's revenue is denominated in USD.
See it on page 37In 2016, 11 bit studios S.A. achieved its strongest historical financial performance, characterized by a 16.6% increase in consolidated revenue to 27.02 million PLN and a net profit of 12.93 million PLN. This growth was achieved without a major new title release, driven instead by the sustained monetization of This War of Mine across consoles and mobile platforms. Geographically, the company remains heavily export-oriented, with 98.6% of revenue generated outside Poland. The United States remains the primary market at 77.8% of sales, while China has emerged as the second-largest region.
The Group maintained a robust and debt-free balance sheet, ending the year with 29.11 million PLN in cash and equivalents. This financial stability allowed for a significant increase in R&D investment, which doubled to 5.4 million PLN. These funds were directed toward the development of the high-budget title Frostpunk, the creation of a second internal development team, and the expansion of the 11 bit publishing division. Strategically, the company transitioned toward a multi-project model while discontinuing underperforming assets, specifically the Games Republic distribution platform.
Operating under International Financial Reporting Standards (IFRS), the Group identified currency fluctuation as a primary risk factor, as approximately 90% of revenues are denominated in USD. Other noted strategic risks include the intense competition for indie publishing projects and the challenges of recruiting specialized talent. Despite these factors, the company’s market valuation saw significant appreciation, with its stock price increasing by 108% and gaining inclusion in the sWIG80 index. Governance remained stable, with the reappointment of the existing Management and Supervisory Boards to new three-year terms to oversee the next phase of the company's expansion.
