Half-Year Report of 11 Bit Studios S.A. for the Six Months Ended June 30th 2022

During the first half of 2022, 11 bit studios S.A. demonstrated significant financial growth and strategic expansion, reporting a 28% year-on-year revenue increase to PLN 45.8 million and a 13.3% rise in net profit to PLN 15.1 million. This performance was primarily driven by robust back-catalogue sales on global digital platforms, a major mobile distribution agreement with Netflix, and favorable foreign exchange gains. The company maintained a strong liquidity position with total financial assets of PLN 123.3 million, including PLN 109.5 million in cash reserves and equivalents, providing a solid foundation for its transition from indie developer to a producer of larger-scale titles.

The primary strategic focus during this period was the advancement of a multi-project development pipeline, including Frostpunk 2, The Alters, and Project 8. Investment in intangible assets rose to PLN 77.5 million, reflecting a 63.55% increase in development spending. To support this growth, the company expanded its headcount toward a target of 250 employees and increased its publishing commitments. Strategic equity investments were also finalized, including a 40% stake in Fool’s Theory and a significant investment in Starward Industries, aimed at securing a consistent release cycle of one major proprietary game and several third-party titles annually.

Operating expenses rose by nearly 52%, driven by higher royalty payments to third-party developers and a notable PLN 3.67 million donation to the Ukrainian Red Cross. Despite these costs and a revised weighted average cost of capital reflecting broader market risks, the company remains highly liquid and self-funded. With a strong export-led model and partnerships with major industry players like Microsoft and Valve, the firm is positioned to execute its long-term incentive scheme, which targets cumulative five-year revenues of PLN 656 million.