Financial

Half-Year Report of 11 Bit Studios S.A. for the Six Months Ended 30 June 2025

28 August 202577 pages31,144 words

Summary

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.

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Half-Year Report of 11 Bit Studios S.A. for the Six Months Ended 30 June 2025

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