Half-Year Report of 11 Bit Studios S.A. for the First Half of 2020

11 bit studios S.A. achieved the second-best half-year financial performance in its history during the first half of 2020, characterized by a 63.2% year-on-year revenue increase to PLN 50.2 million and a 237% surge in net profit to over PLN 25.0 million. This growth was primarily driven by the sustained monetization of the Frostpunk IP—specifically the successful launch of "The Last Autumn" DLC—and a robust publishing division featuring titles such as Moonlighter and Children of Morta, which contributed 30% of total revenue. Financial results were further bolstered by the application of "IP Box" tax relief, providing a preferential 5% corporate income tax rate on qualifying intellectual property.

The company maintained a formidable liquidity position, with total financial assets reaching PLN 114.2 million and cash reserves exceeding PLN 95 million. These resources are being utilized to self-finance an ambitious expansion of the internal development pipeline, which includes three major projects: "Project 8," "Dolly," and "Eleanor." Notably, the company is transitioning toward higher-budget productions, evidenced by the migration of "Project 8" to Unreal Engine 5 and a strategic shift away from the traditional "indie" segment. Simultaneously, the publishing arm has committed PLN 25 million to four new third-party titles to ensure a steady release cadence.

Operations remained largely undisrupted by the COVID-19 pandemic as the workforce, which grew to approximately 150 employees, successfully transitioned to a remote work model. During this period, the company also moved into its new Warsaw headquarters and finalized a partnership with NetEase to develop a mobile version of Frostpunk. With strong operating cash flows and no identified impairment risks to its intangible assets, the company is positioned to sustain its growth trajectory within a global gaming market that saw increased demand throughout the first half of 2020.