Cyberpunk 2077

CD PROJEKT Group FY 2021 Earnings Presentation

The CD PROJEKT Group fiscal year 2021 earnings presentation outlines a period of significant internal restructuring and strategic realignment following the launch of Cyberpunk 2077.

• CD PROJEKT Group experienced a significant financial contraction in 2021, with sales revenues falling 58% to 888 million PLN and net profit declining 82% to 209 million PLN.
• The company implemented the 'RED 2.0' transformation, restructuring into independent, cross-functional teams capable of managing multiple concurrent AAA projects.
• Despite the earnings downturn, the company increased its liquid assets (cash, deposits, and bonds) by 32% year-over-year, ending 2021 with 1.15 billion PLN.

CD PROJEKT Q3 2021 Financial Results

CD PROJEKT experienced a period of strategic transition and operational investment during the third quarter of 2021.

• CD PROJEKT generated 144 million PLN in revenue during Q3 2021, marking a nearly 40% increase compared to the same period in 2020.
• Consolidated net profit fell to 16 million PLN, primarily due to the expensing of ongoing Cyberpunk 2077 technical updates and early-stage research projects.
• The company strengthened its liquidity position by increasing its financial reserves—including cash, bank deposits, and treasury bonds—by 55 million PLN during the quarter.

CD PROJEKT Group Q3 2021 Financial Results: Transcript of Audio Webcast

CD PROJEKT Group demonstrated financial resilience in the third quarter of 2021, reporting 144 million PLN in sales revenue, which represents a 38% year-over-year increase.

• CD PROJEKT Group reported 144 million PLN in sales revenue for Q3 2021, marking a 38% year-over-year increase driven by digital sales of Cyberpunk 2077.
• The company maintains a strong financial position with 1.185 billion PLN in cash and liquid assets to fund long-term AAA development.
• Next-generation updates for Cyberpunk 2077 are scheduled for release in the first quarter of 2022, with similar updates planned for The Witcher 3.

CD PROJEKT Group Condensed Interim Consolidated Financial Statement: Q3 2021

The CD PROJEKT Group’s financial performance for the first nine months of 2021 reflects a period of transition characterized by revenue growth alongside increased operational costs.

• CD PROJEKT Group reported 615.1 million PLN in revenue for the first nine months of 2021, though net profit fell to 121.4 million PLN due to higher operational costs and Cyberpunk 2077 optimization expenses.
• The company maintains a strong liquidity position with 1.18 billion PLN in financial reserves, including cash, deposits, and treasury bonds.
• North America remains the company's primary market, accounting for over 60% of total sales, with digital distribution channels serving as the main revenue driver.

CD PROJEKT Group H1 2021 Financial Results

CD PROJEKT Group achieved 470 million PLN in total sales revenue during the first half of 2021, representing a 29 percent year-over-year increase.

• CD PROJEKT Group reported 470 million PLN in total sales revenue for H1 2021, marking a 29 percent year-over-year increase driven largely by Cyberpunk 2077 digital sales.
• The company is scheduled to release next-generation versions of both Cyberpunk 2077 and The Witcher 3: Wild Hunt in late 2021.
• Strategic expansion efforts include the acquisition of a Vancouver-based studio and the development of new AAA projects and paid expansions for Cyberpunk 2077.

Management Board Report on the Activities of the CD PROJEKT Group: H1 2021

CD PROJEKT navigated a complex transitional period during the first half of 2021, defined by the stabilization of Cyberpunk 2077 and the implementation of a fundamental corporate restructuring known as RED 2.0.

• CD PROJEKT is implementing a 'RED 2.0' corporate restructuring to transition to a dual-franchise model, enabling parallel AAA development for The Witcher and Cyberpunk IPs starting in 2022.
• H1 2021 sales revenue grew by 29.3% to 470.6 million PLN, though net profit fell to 105 million PLN due to high maintenance costs for Cyberpunk 2077 and increased development depreciation.
• The company maintains a strong financial position with over 1.1 billion PLN in cash reserves and zero outstanding debt.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for H1 2021

The CD PROJEKT Group’s financial performance for the first half of 2021 reflects a period of stabilization and transition following the high-profile release of Cyberpunk 2077.

• CD PROJEKT Group reported 470.6 million PLN in sales revenue and 105.0 million PLN in net profit for H1 2021, with North America accounting for approximately 78% of total sales.
• The company distributed 503.7 million PLN in dividends, or 5.00 PLN per share, while maintaining a cash and cash equivalents balance of 669.1 million PLN as of June 30, 2021.
• Short-term compensation-related liabilities were significantly reduced from 485.6 million PLN to 160.9 million PLN during the six-month period.

CD PROJEKT Group Q1 2021 Financial Results

The CD PROJEKT Group’s financial results for the first quarter of 2021 reflect a transitional period defined by intensive post-launch support for Cyberpunk 2077 and a strategic shift toward future development.

• CD PROJEKT Group reported a Q1 2021 net profit of 32.5 million PLN, heavily impacted by 30 million PLN in servicing costs for Cyberpunk 2077 and Gwent alongside 9 million PLN in R&D expenditures.
• The company maintains a strong liquidity position with 1.915 billion PLN in cash, bank deposits, and treasury bonds, bolstered by a 1.04 billion PLN increase in cash flow during the quarter.
• Cyberpunk 2077 remained the primary revenue driver, accounting for nearly 60% of product sales, though performance was constrained by the game's absence from the PlayStation Store.

CD PROJEKT Group Condensed Interim Consolidated Financial Statement: Q1 2021

The CD PROJEKT Group’s financial performance for the first quarter of 2021 reflects a period of transition characterized by high liquidity and significant operational expenditure following the late 2020 release of Cyberpunk 2077.

• CD PROJEKT Group’s net profit fell by approximately 65% year-over-year to 32.5 million PLN in Q1 2021, driven by high R&D, administrative costs, and ongoing maintenance for Cyberpunk 2077.
• Despite lower profits, the company’s liquid financial reserves surged by nearly 119% compared to year-end 2020, reaching over 1.9 billion PLN.
• Operating cash flow exceeded 1 billion PLN in Q1 2021, supported by a 95.7% reduction in trade receivables as licensing royalties for Cyberpunk 2077 were collected.

CD PROJEKT Group FY 2020 Earnings Presentation

The CD PROJEKT Group fiscal year 2020 earnings presentation outlines the company’s financial performance and strategic shift following the release of Cyberpunk 2077.

• CD PROJEKT Group achieved record-breaking 2020 financial results with 2.14 billion PLN in sales revenue, representing a 310% increase over 2019.
• The company reported a net profit of 1.15 billion PLN for 2020, resulting in a net profitability margin of 54%.
• The board recommended a dividend payout of 5 PLN per share, amounting to a total distribution of 503.69 million PLN.

Separate Financial Statement of CD PROJEKT S.A. for 2020

CD PROJEKT S.A. achieved substantial financial growth during the 2020 fiscal year, characterized by a dramatic surge in sales revenues to PLN 1.88 billion from PLN 361.4 million in 2019.

• CD PROJEKT S.A. reported a massive revenue increase to PLN 1.88 billion in 2020, up from PLN 361.4 million in 2019, driven largely by international digital distribution.
• The company achieved a net profit of PLN 1.13 billion and earnings per share of PLN 11.74, bolstered by a 0.58% effective tax rate due to the IP BOX tax relief program.
• Financial results for 2020 include PLN 474.9 million in provisions specifically allocated to address costs related to the launch of Cyberpunk 2077.

Kadokawa Corporation Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2020

Kadokawa Corporation achieved robust financial growth during the nine-month period ending December 31, 2020, characterized by a 1.7 percent increase in net sales to 152,777 million yen and a substantial 56.1 percent rise in operating profit to 13,204 million yen.