Related Documents
Financial
Half-Year Report of 11 Bit Studios S.A. for the Six Months Ended 30 June 2024
During the first half of 2024, 11 bit studios S.A. experienced a transitional period characterized by rising revenues and strategic investments in preparation for major upcoming releases. Revenue grew 24.16% year-on-year to PLN 30.76 million, primarily driven by third-party publishing titles such as The Thaumaturge, INDIKA, and The Invincible. These external projects now account for 52% of total sales, with the United States remaining the largest geographic market and Steam serving as the primary distribution platform. Despite the growth in top-line revenue, the company reported a net loss of PLN 0.48 million, a sharp decline from the PLN 4.01 million profit recorded in the same period of 2023. This downturn was largely due to a 49% surge in operating expenses, driven by a doubling of salary costs and increased marketing expenditures. These costs reflect a significant expansion in headcount and intensified preparations for the high-profile launches of Frostpunk 2 and The Alters. The company has capitalized over PLN 155 million in ongoing development work, signaling a shift toward larger, higher-budget productions. The financial position remains robust, with total assets growing to PLN 277.4 million and cash reserves increasing to PLN 42.87 million. Liquidity is further bolstered by PLN 24.35 million in contract liabilities, largely consisting of advance payments from Microsoft for Game Pass inclusions and Frostpunk 2 pre-orders. Management maintains a positive outlook for the 2024–2026 period, supported by a multi-IP strategy intended to stabilize revenue through a consistent release cycle of both internal and third-party titles. While the company faces risks related to production delays and a competitive labor market, its current resources are deemed sufficient to fund its development pipeline without external financing.
11 bit studiosAug 2024
Financial
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.
11 bit studiosSept 2022
Financial
Half-Year Report of 11 Bit Studios S.A. for the Six Months Ended 30 June 2025
11 bit studios S.A. achieved a significant financial turnaround in the first half of 2025, reporting a net profit of PLN 8.48 million compared to a net loss in the same period of 2024. Revenue grew by 86% year-over-year to reach PLN 57.24 million, a surge primarily driven by the successful June launch of *The Alters* and recurring income from Microsoft Game Pass for *Frostpunk 2*. The United States remains the company’s most critical market, accounting for 78% of total revenue, while Steam serves as the primary distribution channel, representing over half of all sales. The company’s balance sheet remains stable with total assets of PLN 265.6 million, though cash reserves decreased to PLN 51.9 million due to heavy investment in intangible assets and property. Operating expenses rose to PLN 40.3 million, characterized by a fourfold increase in depreciation following the release of major titles. Notably, the company reduced the estimated cost of its 2021–2025 Incentive Scheme to zero, as it no longer expects to meet the ambitious five-year financial targets of PLN 656 million in revenue and PLN 328 million in pre-tax profit. Strategically, the studio is transitioning to a three-pillar model focused on internal IP development, long-term "platform games," and third-party publishing. Current development efforts are centered on the September 2025 console release of *Frostpunk 2*, the Early Access launch of *Moonlighter 2*, and the production of *Frostpunk 1886* using Unreal Engine 5. While the global gaming market shows growth potential, the company continues to manage risks related to unpredictable consumer demand, platform holder dependencies, and the competitive landscape for specialized development talent in Poland.
11 bit studiosAug 2025
Financial
Half-Year Report of 11 Bit Studios S.A. for the First Half of 2021
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.
11 bit studiosAug 2021