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Financial
Annual Report of 11 bit studios S.A. for 2011
During the 2011 fiscal year, 11 bit studios S.A. successfully transitioned from a development-focused startup into a profitable global commercial entity. This transformation was primarily driven by the critical and commercial success of the Anomaly Warzone Earth series, which enabled the company to report a net profit of 1.29 million PLN. This represents a significant turnaround from the net loss of 231,199 PLN recorded in 2010. Net sales revenue surged by over 544% to 3.05 million PLN, characterized by a high-margin strategy where nearly 50% of sales were converted to profit. The company’s operations are heavily international, with 96% of product sales originating from foreign markets through digital distribution platforms such as Steam and the App Store. Consequently, the firm maintains a high exposure to currency fluctuations, as 80-100% of its revenue is denominated in USD, EUR, and GBP. To support its growth trajectory, the company utilized a Series D share issuance to raise capital, ending the year with a strengthened cash position of 1.30 million PLN and total assets exceeding 2.99 million PLN. These resources are being deployed to fund the simultaneous development of four new game series. Operational risks remain centered on the inherent unpredictability of consumer demand and a strategic dependency on major platform owners like Sony and Microsoft. To mitigate these factors, the company prioritizes diversification across open platforms and utilizes rigorous usability testing. Audited financial statements confirm that the firm is in a stable position with no threats to continued operations. Looking forward, the company has set ambitious growth targets, aiming for 12.7 million PLN in revenue by 2013 while maintaining its commitment to transparency standards as a listed entity on the NewConnect market.
11 bit studiosJun 2012
Financial
Annual Report of 11 bit studios S.A. for 2013
During the 2013 fiscal year, 11 bit studios S.A. achieved its third consecutive year of profitability, characterized by a strategic transition from a pure development house to a diversified global publisher and distributor. While net sales revenue grew by 28% year-over-year to 4.3 million PLN—with total revenues reaching 5.75 million PLN—net profit saw a moderate decline to approximately 1.01 million PLN. This decrease in margin was primarily driven by a 44.9% rise in operating costs, largely attributed to increased personnel expenses and the simultaneous development of three major titles, including the high-profile project This War of Mine and Anomaly Defenders. The company’s financial health remained robust, ending the year with 3.74 million PLN in cash reserves and total assets of 8.7 million PLN. A significant portion of these assets consisted of capitalized development costs and work-in-progress inventory, reflecting a heavy reinvestment of capital into future intellectual property. This internal funding capability allowed management to pursue 2014 operations without seeking external financing. To further stabilize its business model, the firm launched the "11 bit launchpad" publishing initiative and the "Games Republic" digital distribution platform, aiming to reduce reliance on third-party platforms and diversify revenue streams. Operating primarily in the global market, the company generated over 93% of its revenue from foreign sales, creating significant exposure to currency fluctuations, particularly the USD/PLN exchange rate. Other identified risks included the inherent unpredictability of consumer demand and the technical challenges of securing approvals for closed console platforms. To mitigate these, the firm focused on cross-platform development for PC and mobile while utilizing internal training systems to address the shortage of specialized talent in the Polish labor market. Independent audits confirmed the company’s strong liquidity and compliance with Polish accounting regulations, maintaining a transparent corporate governance profile on the NewConnect exchange.
11 bit studiosJun 2014
Financial
Annual Report of 11 bit studios S.A. for 2021
11 bit studios S.A. maintained a robust financial and strategic position in 2021, despite a year-over-year decline in earnings driven by a lack of new product premieres. The company reported annual revenue of 70.12 million PLN and a net profit of 28.69 million PLN, down from 37.36 million PLN in 2020. Notwithstanding lower sales, the balance sheet strengthened significantly, with total assets rising to 219.5 million PLN and record financial assets reaching 107.41 million PLN. This stability was fueled by the sustained performance of the "back catalogue," including *Frostpunk* and *This War of Mine*, alongside effective utilization of the "IP Box" tax relief. The company is currently undergoing a major strategic transition from "Indie" developer to a larger-scale producer and publisher. To support this, 11 bit studios expanded its workforce to over 200 employees and increased R&D investment, with capitalized development costs for unfinished projects—specifically *Frostpunk 2*, *Dolly*, and *Project 8*—rising to 52.93 million PLN. All internal projects have migrated to Unreal Engine under a new licensing deal with Epic Games. Additionally, the company expanded its external footprint by acquiring a 40% stake in Fool’s Theory and committing 50 million PLN to its publishing pipeline through 2023. Geographically, the United States remains the dominant market, accounting for 76% of total revenue, with Steam serving as the primary distribution channel. Because 78% of revenue is denominated in USD while costs are largely in PLN, the company remains highly sensitive to currency volatility. Looking ahead, management has established an ambitious 2021–2025 incentive program targeting 656 million PLN in consolidated revenue, underpinned by a shift toward a multi-team structure capable of delivering annual releases. Operations remain centered in Poland, with the company maintaining high liquidity and self-financing capabilities to fund its upcoming production cycles.
11 bit studiosMar 2022
Financial
Annual Report of 11 Bit Studios S.A. for 2023
11 bit studios S.A. transitioned through a significant investment phase in 2023, characterized by a deliberate shift toward larger-scale production and a multi-brand intellectual property model. While the company reported a 29.6% decline in revenue to PLN 52.3 million and a sharp contraction in net profit to PLN 0.52 million, these results reflect a maturing product portfolio and the absence of major proprietary releases during the period. Financial performance was further impacted by non-cash adjustments, including a PLN 6.5 million write-down of its stake in Starward Industries and unfavorable currency exchange fluctuations affecting its primary revenue streams in USD and EUR. Despite lower earnings, the company maintained a robust financial position, ending the year with PLN 54.3 million in cash and deposits and no significant external debt. This liquidity supported a record investment of PLN 58.2 million into game development, bringing total "ongoing development work" to PLN 149.6 million. These resources are concentrated on three major proprietary titles—*Frostpunk 2*, *The Alters*, and *Project 8*—as the studio moves toward a strategic goal of releasing one internal game every few quarters. Notably, the publishing division reached a record 42% share of total revenue, bolstered by the release of *The Invincible* and strong back-catalogue performance from titles like *Frostpunk* and *Children of Morta*. The company expanded its workforce to 299 employees and modernized its Warsaw headquarters, emphasizing human capital and operational readiness for a landmark 2024 release schedule. Strategic agreements, such as advance payments from Microsoft for Game Pass inclusions, have further strengthened the balance sheet. While management identified risks related to talent shortages and macroeconomic volatility, the successful accumulation of over two million wishlists for *Frostpunk 2* underscores a positive outlook. The company remains committed to its 2021–2025 incentive targets and continues to utilize "IP Box" tax relief to optimize its fiscal position as it prepares for its next growth cycle.
11 bit studiosApr 2024