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Financial
Quarterly Report of 11 Bit Studios S.A. for the Nine Months Ended September 30th 2021
During the first nine months of 2021, 11 bit studios S.A. focused on a strategic transition toward a multi-team production model and the expansion of its publishing pipeline. Financial performance for this period reflected a transitional phase, with revenue reaching PLN 49.2 million and net profit totaling PLN 17.4 million. These figures represent a year-over-year decline from 2020, driven by a high comparative base and the natural aging of the existing game portfolio, which includes established titles such as Frostpunk, Moonlighter, and Children of Morta. Despite lower current earnings, the company maintained a robust liquidity position, ending the period with PLN 121.5 million in financial assets and a significant increase in cash reserves to PLN 38.1 million. Operational efforts are heavily concentrated on future growth, with approximately PLN 110 million committed to the development of three major internal projects: Frostpunk 2, Project 8, and Dolly. To support these ambitions, the studio has migrated to Unreal Engine and expanded its workforce to 192 employees, contributing to a 74.6% increase in salary expenses. The company is also scaling its publishing division, earmarking PLN 80 million for third-party titles through 2023. This strategy aims to establish a consistent release cycle of one proprietary game and multiple third-party titles annually. The financial structure remains stable, characterized by a 9.8% increase in total assets to PLN 204.7 million and a reduction in total liabilities. While the abandonment of the internal Liquid Engine resulted in a minor impairment loss, the valuation of ongoing projects remains secure. Beyond core development, the studio is diversifying the Frostpunk intellectual property into mobile, board game, and literary markets while actively seeking minority acquisitions to bolster its long-term development and publishing capabilities.
11 bit studiosNov 2021
Financial
Quarterly Report of 11 Bit Studios S.A. for Nine Months Ended September 30th 2023
During the first nine months of 2023, 11 bit studios S.A. experienced a transitional period characterized by a significant decline in financial performance as the company prepared for a major new release cycle. Revenue fell 42% year-on-year to PLN 34.28 million, while net profit dropped from PLN 19.97 million to PLN 1.35 million. This downturn is primarily attributed to the natural aging of the existing game portfolio and the absence of new product launches during the period. Despite these challenges, the company maintained a strong liquidity position, with cash and cash equivalents rising to PLN 43.1 million and total assets increasing to PLN 264.1 million. The company’s strategic focus has shifted heavily toward research and development, with intangible assets related to ongoing development work rising to PLN 138.2 million. Major investments are concentrated on upcoming proprietary titles, including Frostpunk 2, The Alters, and Project 8, alongside publishing projects like The Thaumaturge. Management is targeting a more aggressive release cadence starting in 2024, aiming for one internal and three to four third-party titles annually. This growth strategy is supported by a 2021–2025 Incentive Scheme that sets ambitious five-year targets of PLN 656 million in revenue and PLN 328 million in pre-tax profit. Geographically, the United States remains the dominant market, accounting for 73% of total revenue, with Valve’s Steam platform serving as the primary distribution channel. While the company faced a Q3 net loss due to the non-cash remeasurement of its stake in Starward Industries, it continues to benefit from the "IP Box" tax relief and prudent cash management. With a robust pipeline of high-profile sequels and new IPs scheduled for the first half of 2024, the company is positioned to move past its current investment phase into a period of expected commercial expansion.
11 bit studiosNov 2023
Financial
Quarterly Report of 11 Bit Studios S.A. for Nine Months Ended September 30th 2022
During the first nine months of 2022, 11 bit studios S.A. demonstrated a robust financial performance characterized by a 21% year-on-year increase in revenue to PLN 59.58 million and a net profit of PLN 19.97 million. This growth was primarily fueled by the sustained monetization of established titles such as Frostpunk and This War of Mine, alongside a rapidly expanding publishing division. Third-party publishing now accounts for 39% of total revenue, up from 25% in the previous year, supported by the success of titles like Moonlighter and Children of Morta. The United States remains the company's primary market, contributing PLN 46.37 million to the total revenue. The company is currently executing a strategic transition toward a multi-project development model, significantly increasing its investment in future growth. Research and development spending rose by over 65% to PLN 34.26 million, with total intangible assets reaching PLN 89.5 million. These investments are concentrated on three major proprietary titles—Frostpunk 2, The Alters, and Project 8—as well as a diverse four-game publishing portfolio. To support this expansion, the firm has deepened its industry footprint through strategic equity acquisitions, including a 40% stake in Fool’s Theory Sp. z o.o. and a significant investment in Starward Industries S.A. Financial stability remains a core strength, with over PLN 102 million held in cash and current financial assets. While operating expenses and service costs rose due to higher third-party royalties and increased management remuneration, the company benefited from a favorable effective tax rate of 11.43% through the IP Box relief program and currency exchange gains from a depreciating złoty. Despite a substantial PLN 3.66 million charitable donation to the Ukrainian Red Cross, earnings per share rose to PLN 8.40. Management remains focused on an ambitious five-year incentive scheme targeting PLN 656 million in cumulative revenue by 2025, underpinned by a strong liquidity position and no history of collection issues with major global digital platforms.
11 bit studiosNov 2022
Financial
Quarterly Report of 11 Bit Studios for Nine Months Ended 30 September 2024
11 bit studios achieved record-breaking financial performance during the first nine months of 2024, characterized by a 211% year-on-year revenue increase to PLN 106.6 million. This growth translated into a dramatic surge in net profit, which rose from PLN 1.35 million in the previous year to PLN 47.5 million. The primary catalyst for this expansion was the September launch of Frostpunk 2, which sold over 511,000 copies by the reporting date and generated nearly half of the period's total revenue. Financial results were further bolstered by a significant PLN 5.8 million IP Box tax relief settlement and strong performance from the United States market. The company’s balance sheet reflects a transition toward large-scale production, with the net carrying amount of completed development work rising from PLN 5.4 million to PLN 97.8 million. While operating activities generated PLN 27.3 million in cash, heavy investment in intangible assets and property resulted in a slight net decrease in total cash reserves to PLN 35.9 million. Trade receivables saw a substantial spike to PLN 48.5 million, largely due to a major contract with a single partner, while contract liabilities include advance payments from platforms like Microsoft for future game availability. Despite the success of the Frostpunk franchise, management is currently reassessing its broader publishing strategy following the underperformance of certain portfolio titles. This shift is evidenced by the decision to write down the investment estimate for Fool’s Theory to zero and a reduction in provisions for the 2021–2025 Incentive Scheme, as game delays make original financial targets less certain. Looking ahead to 2025, the company’s outlook remains centered on the postponed release of The Alters in the first quarter and the continued development of Project 8, alongside the ongoing monetization of its established back catalogue.
11 bit studiosNov 2024