Financial

Half-Year Report of 11 Bit Studios S.A. for H1 2019

27 August 201948 pages27,536 words

Summary

During the first half of 2019, 11 bit studios S.A. focused on transitioning from an indie developer to a larger-scale producer of proprietary and third-party titles. Financial performance for the period saw revenue reach PLN 30.7 million and net profit total PLN 6.4 million. While these figures represent a significant year-on-year decline from the record highs of H1 2018—driven by the initial launches of Frostpunk and Moonlighter—the company maintained a robust balance sheet. Total assets grew to PLN 126.6 million, supported by a strong cash and liquid asset position of approximately PLN 84 million, which allows for the self-funding of all current operations and future investments. The company’s stability is anchored by the continued monetization of its core portfolio, including Frostpunk, which reached 1.4 million copies sold, and Moonlighter, which surpassed 1 million players. These steady revenue streams are being reinvested into an ambitious expansion strategy. Internal development efforts have nearly doubled in investment to PLN 9.9 million as the studio progresses on "Project 8," a new title with a PLN 20 million budget. To support this growth, the company is expanding its headcount to 121 employees with the goal of maintaining three concurrent internal development teams to ensure an annual release cycle for proprietary games. Simultaneously, the publishing division is scaling its operations by increasing per-project investment caps from PLN 2 million to PLN 5 million, aiming for a release cadence of one third-party title per quarter. Looking toward the second half of 2019, growth is expected to be driven by the launch of Children of Morta and the console releases of Frostpunk. Despite the high base effect of the previous year and non-cash provisions for employee incentive schemes, the company’s market capitalization rose by over 60%, reflecting investor confidence in its long-term strategy of scaling production and publishing capabilities.

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Half-Year Report of 11 Bit Studios S.A. for H1 2019

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