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Financial
Half-Year Report of 11 bit studios S.A. for H1 2018
The first half of 2018 marked a transformative period for 11 bit studios S.A., characterized by record-breaking financial performance and a strategic shift toward larger-scale game production. Driven primarily by the April launch of Frostpunk, which recouped its PLN 10-12 million development costs within 66 hours, the company saw revenue surge 427% year-on-year to PLN 45.7 million. This commercial success, bolstered by the publishing hit Moonlighter and the sustained performance of This War of Mine, resulted in a net profit of PLN 24.9 million—a more than ninety-fold increase over the previous year. The company’s financial position is exceptionally robust, with total assets reaching PLN 82.3 million and a cash position exceeding PLN 51 million. This liquidity allows for the self-funding of all current operations and future projects without the need for external debt. International markets remain the primary revenue driver, accounting for 96% of total sales, with 85% originating from the United States. This global reach contributed to the company’s market capitalization surpassing PLN 1 billion, leading to its inclusion in the mWIG40 index. Strategically, the firm is transitioning away from the indie segment to focus on more ambitious titles, exemplified by the development of Project 8. To support this growth, the company is expanding to three independent development teams and scaling its publishing division to target quarterly third-party releases. Future growth initiatives include porting key titles to the Nintendo Switch and other consoles to extend product lifecycles. With a headcount of over 100 employees and a proprietary engine, the organization is positioned to stabilize long-term financial results through a diversified portfolio of internal and external intellectual properties.
11 bit studiosAug 2018
Financial
Half-Year Report of 11 Bit Studios S.A. for the First Half of 2020
11 bit studios S.A. achieved the second-best half-year financial performance in its history during the first half of 2020, characterized by a 63.2% year-on-year revenue increase to PLN 50.2 million and a 237% surge in net profit to over PLN 25.0 million. This growth was primarily driven by the sustained monetization of the *Frostpunk* IP—specifically the successful launch of "The Last Autumn" DLC—and a robust publishing division featuring titles such as *Moonlighter* and *Children of Morta*, which contributed 30% of total revenue. Financial results were further bolstered by the application of "IP Box" tax relief, providing a preferential 5% corporate income tax rate on qualifying intellectual property. The company maintained a formidable liquidity position, with total financial assets reaching PLN 114.2 million and cash reserves exceeding PLN 95 million. These resources are being utilized to self-finance an ambitious expansion of the internal development pipeline, which includes three major projects: "Project 8," "Dolly," and "Eleanor." Notably, the company is transitioning toward higher-budget productions, evidenced by the migration of "Project 8" to Unreal Engine 5 and a strategic shift away from the traditional "indie" segment. Simultaneously, the publishing arm has committed PLN 25 million to four new third-party titles to ensure a steady release cadence. Operations remained largely undisrupted by the COVID-19 pandemic as the workforce, which grew to approximately 150 employees, successfully transitioned to a remote work model. During this period, the company also moved into its new Warsaw headquarters and finalized a partnership with NetEase to develop a mobile version of *Frostpunk*. With strong operating cash flows and no identified impairment risks to its intangible assets, the company is positioned to sustain its growth trajectory within a global gaming market that saw increased demand throughout the first half of 2020.
11 bit studiosAug 2020
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
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