Half-Year Report of 11 Bit Studios S.A. for the Six Months Ended June 30th 2023

11 bit studios experienced a significant H1 2023 downturn, with revenue falling 45.87% to PLN 24.78 million and net profit dropping 73.4% to PLN 4.01 million due to a lack of major releases since 2018.

The company is currently in a heavy investment cycle, with intangible assets related to game development rising to PLN 124.7 million to fund a pipeline that includes Frostpunk 2, The Alters, Project 8, The Invincible, and The Thaumaturge.

Despite lower earnings, the firm maintains a strong financial position with total assets of PLN 266.04 million and cash reserves of PLN 38.95 million, supported by strategic partner advances from Microsoft and a new PLN 20 million credit facility.

Management anticipates a financial recovery beginning in late 2023 and accelerating through 2024 as the new development and publishing titles reach the market.

The company’s operations are heavily export-dependent, with 92% of revenue generated internationally and 73% of the total market concentrated in the United States.

The firm utilizes Poland’s IP Box tax relief to maintain an effective tax rate of 15.03% while pursuing a long-term goal of PLN 328 million in profit before tax over the next five years.