Financial11 bit studios
Half-Year Report of 11 Bit Studios S.A. for the First Half of 2021
1 Aug 202175 pages~146 min full read
11 bit studios is executing a long-term growth strategy backed by a 2021–2025 incentive scheme targeting PLN 656 million in total revenue.
The company is currently funding three internal projects—Frostpunk 2, Dolly, and Project 8—with a combined development budget of approximately PLN 110 million.
Despite a year-on-year revenue decline of 28.7% to PLN 35.8 million and a 46.8% drop in net profit, the company maintains a strong financial position with record cash and financial assets of PLN 114.6 million.
The publishing division now accounts for 27% of H1 revenue and is supported by a planned PLN 50 million investment in third-party titles through 2023.
Operational costs rose significantly due to a 54% increase in salary expenses, driven by a workforce expansion to 181 employees.
The studio is transitioning toward a model of annual proprietary releases by leveraging IP Box tax relief and established distribution partnerships with Valve and Nintendo.
11 bit studios S.A. reported a solid financial performance for the first half of 2021, characterized by a transition from immediate product launches to a period of intensive internal development. While revenue fell 28.7% year-on-year to PLN 35.8 million and net profit decreased 46.8% to PLN 13.3 million, these declines are attributed to a high comparative base in 2020 following major content releases and significant subscription contracts. Despite the lower year-on-year figures, the period represents the third-best first half in the company’s history, supported by the enduring commercial success of the Frostpunk and This War of Mine franchises.
The company’s balance sheet remains exceptionally strong, with total assets growing to PLN 201.2 million and record-high cash resources and financial assets reaching PLN 114.6 million. This liquidity is being strategically deployed to fund an ambitious expansion of the studio’s production capabilities. 11 bit studios is currently managing three internal development teams working on major projects, including Frostpunk 2, Dolly, and Project 8, with a combined budget of approximately PLN 110 million. Simultaneously, the publishing division continues to scale, contributing 27% of H1 revenue and planning a PLN 50 million investment in third-party titles through 2023.
Operational costs saw a notable shift during this period, with a 54% increase in salaries driven by a workforce expansion to 181 personnel and the implementation of a new 2021–2025 incentive scheme. This scheme sets aggressive five-year targets, including PLN 656 million in total revenue, signaling a long-term growth strategy. By leveraging IP Box tax relief and maintaining low-risk relationships with global distributors like Valve and Nintendo, the studio is well-positioned to transition from an indie developer into a larger-scale producer capable of annual proprietary releases.
