Financial11 bit studios
Annual Report of 11 bit studios S.A. for 2015
1 Jun 201638 pages~113 min full read
11 bit studios achieved record financial performance in 2015, with sales revenue increasing to 22.7 million PLN from 15.6 million PLN in 2014 and net profit reaching 12.8 million PLN.
See it on page 5The company’s cash reserves tripled during the fiscal year, rising from 7.64 million PLN to 22.93 million PLN.
See it on page 28Financial growth was primarily driven by the sustained global commercial success of the title This War of Mine across Steam, Apple, and Google platforms.
See it on page 20The company transitioned to International Financial Reporting Standards (IFRS), resulting in the reclassification of 4.86 million PLN in development costs from inventories to intangible assets.
See it on page 1011 bit studios maintains a specific amortization policy, depreciating completed game titles over 12 to 18 months and proprietary game engines over 36 months.
See it on page 20The company faces significant currency risk because the majority of its revenue is generated in USD, while its functional currency is the Polish złoty.
See it on page 19Following the 2015 fiscal year, the company executed a strategy of platform diversification with the January 2016 console launch of This War of Mine: The Little Ones.
See it on page 36The 2015 fiscal year marked a transformative period for 11 bit studios S.A., characterized by record-breaking financial performance and a formal transition to International Financial Reporting Standards (IFRS). Sales revenue climbed to 22.7 million PLN, a significant increase from 15.6 million PLN in 2014, while net profit rose to 12.8 million PLN. This growth was primarily driven by the sustained global commercial success of This War of Mine across major digital distribution platforms such as Steam, Apple, and Google. The company’s liquidity position strengthened remarkably, with cash reserves increasing from 7.64 million PLN to 22.93 million PLN by year-end.
The adoption of IFRS necessitated substantial balance sheet adjustments, most notably the reclassification of 4.86 million PLN in development costs from inventories to intangible assets. The company maintains a rigorous accounting policy for game production, capitalizing development costs and amortizing completed titles over 12 to 18 months, while proprietary game engines are amortized over 36 months. Despite writing off approximately 175,000 PLN for abandoned projects, the company continued heavy investment in its technological infrastructure and future pipeline, ending the year with 6.39 million PLN in intangible assets.
Operating within a single business segment of game production, the company remains exposed to significant currency risk, as the majority of its revenue is generated in USD while its functional currency is the Polish złoty. Beyond operational achievements, the period saw the implementation of an employee stock option program and a management incentive scheme tied to financial targets. Following the close of the fiscal year, the company expanded its market reach with the January 2016 console launch of This War of Mine: The Little Ones, signaling a continued strategy of platform diversification and brand extension.
