Market Analysis Reports | Game Industry Library

Śródroczne skonsolidowane sprawozdanie: Q3 2021

WARSZAWA, 29 LISTOPADA 2021 ROKU Ś RÓDROCZNE SKONSOLIDOWANE SPRAWOZDANIE ZA OKRES 3 I 9 MIESIĘ CY ZAKOŃCZONY 30 WRZEŚ NIA 2021 ROKU 29 LISTOPADA 2021 PCF GRUPA KAPITAŁOWA PCF GROUP SPÓŁKA AKCYJNA 2 0 Śródroczne skonsolidowane sprawozdanie za okres 9 miesięcy zakończony 30.09.2021 r. GROUP (dane w tys.

PCF Group S.A.'s total assets significantly increased from 95,697 thousand PLN at the end of 2020 to 292,787 thousand PLN by September 30, 2021, driven by a substantial rise in equity from 76,519 thousand PLN to 241,589 thousand PLN.
The company's net profit for the 9 months ending September 30, 2021, was 46,410 thousand PLN, a significant increase from 21,828 thousand PLN for the same period in 2020. Basic and diluted earnings per share also rose from 0.79 PLN to 1.57 PLN.
Total revenue from sales grew from 79,319 thousand PLN for the 9 months ending September 30, 2020, to 131,797 thousand PLN for the same period in 2021, with most revenue (130,215 thousand PLN) coming from game production services.
PCF Group expanded its capital group structure in 2021 by establishing People Can Fly Chicago, LLC (April 6) and acquiring Game On Creative, Inc. (April 27), further strengthening its international presence.
The company issued new shares (Series B and D) in 2021, raising net proceeds of 100,286,845.80 PLN from Series B shares, contributing to the increase in equity.

Skonsolidowany Raport Kwartalny: Q3 2022

Niniejsze sródroczne skrócone skonsolidowane sprawozdanie finansowe zostato zatwierdzone Grupa Kapitałowa PCF Group Spółka Akcyjna WYBRANE DANE W PRZELICZENIU NA EUR Podpisy wszystkich Cztonków Zarzadu Data Imie i nazwisko Funkcja Podpis zgodnie z data podpisu Sebastian Kamil Prezes Zarzadu Signature Not Verified elektronicznego Wojciechowski Dokument podpisay przez Podpisy osoby odpowiedzialnej za sporzadzenie niniejszego sródrocznego skróconego Data I...

Net profit for the period from January 1 to September 30, 2022, was 38,680.
Total comprehensive income after tax for the period from January 1 to September 30, 2022, was 9,179.
Cash flows from investment activities resulted in a net outflow of (36,329).
Cash flows from financing activities resulted in a net outflow of (11,898).
The report, titled "Skonsolidowany Raport Kwartalny: Q3 2022" (Consolidated Quarterly Report: Q3 2022), was approved for publication on November 28, 2022.

Management Board Report on the Activities of PCF Group: 2021

AL. SOLIDARNOCI 171 TEL +48 22 887 34 30 SPÓLKA 2 0 AKCYJNA 2 1 SPRAWOZDANIE ZARZADU Z DZIALALNOSCI (dane w tys. zł, chyba że zaznaczono inaczej) PEOPLE PCF GAN FLY GROUP Niniejsze Sprawozdanie z działalności Grupy S.A. Kapitałowej PCF Group S.A. i spółki PCF Group S.A. w 2021 r. zostało sporządzone na podstawie § 70 ust. 1 pkt 4, 6, 7 oraz § 71 ust.

PCF Group's total sales revenue in 2021 reached PLN 180.3 million, marking a 74% increase compared to 2020.
The 'production of games on commission' segment generated 99% of the Group's total sales revenue in 2021, amounting to PLN 178.4 million.
The game 'Outriders' premiered on April 1, 2021, and was a key product in the 'production of games on commission' segment.
PCF Group expanded its operations in 2021 by establishing People Can Fly Chicago, LLC on April 6, acquiring an eighteen-person development team from Phosphor Games, LLC on April 23, and acquiring 100% of Game On Creative Inc. for PLN 29.37 million on April 27.
PCF Group S.A. provided a USD 5 million loan to its subsidiary People Can Fly U.S., LLC on March 31, 2021, for strategic activities including the establishment of People Can Fly U.S., LLC and the acquisition of the Chicago development team.

Annual Consolidated Financial Statement: 2021

AL. SOLIDARNOSCI 171 TEL +48 22 887 34 30 Grupa Kapitałowa PCF Group Spółka Akcyjna – wybrane dane w przeliczeniu na EUR PLN EUR od 01.01 do od 01.01 do od 01.01 do od 01.01 do 31.12.2021 r. 31.12.2020 r. 31.12.2021 r. 31.12.2020 r.

Net cash flow from operating activities significantly increased to 59,254 thousand PLN in 2021, up from 15,762 thousand PLN in 2020.
The company's profit before tax more than doubled, reaching 64,441 thousand PLN in 2021 compared to 26,658 thousand PLN in 2020.
Net profit from continuing operations also saw substantial growth, increasing to 61,326 thousand PLN in 2021 from 24,579 thousand PLN in 2020.
Cash and cash equivalents surged to 137,102 thousand PLN by the end of 2021, a significant rise from 41,302 thousand PLN at the end of 2020.
Employee benefits expenses increased substantially to 55,884 thousand PLN in 2021, up from 20,311 thousand PLN in 2020.

Prezentacja Wyników Finansowych Q1 2022

The presentation reports the financial performance of PCF Group S.A. for Q1 2022, comparing it with the same period in 2021 and providing a full‑year outlook for 2022. Revenue rose by 63.1 % to PLN 30.9 million, driven primarily by the People Can Fly and Can Fly subsidiaries; EBITDA increased 77.2 % to PLN 9.3 million, while net profit surged 78.8 % to PLN 13.9 million. The group’s enterprise value reached PLN 56.2 million, a 2.9 % rise from the previous year, and shareholders’ equity grew by 6.3 % to PLN 276.0 million. Total assets increased 8.8 % to PLN 344.7 million, with current cash balances slightly down by 1.0 % to PLN 135.8 million.

Operating highlights show that revenue from game production on contract and development outsourcing grew 69.9 % year‑over‑year, while related costs remained stable, improving gross margins. EBITDA trends across the fiscal year demonstrate a steady upward trajectory from FY 2020 through FY 2022, with adjusted EBITDA for Q1 2022 at PLN 16.8 million.

The analysis is based on audited financial statements and internal management data, with figures rounded to the nearest PLN. The presentation covers Poland only, covering Q1 2022 and full‑year 2022 projections. No external survey or market research methodology is disclosed; the data derive from the company’s own reporting systems.

PCF Group S.A. reported a 78.8% surge in net profit to PLN 13.9 million for Q1 2022 compared to the same period in 2021.
Total revenue for Q1 2022 reached PLN 30.9 million, representing a 63.1% year-over-year increase driven by the People Can Fly and Can Fly subsidiaries.
EBITDA grew by 77.2% to PLN 9.3 million, with an adjusted EBITDA of PLN 16.8 million for the quarter.
Revenue from game production on contract and development outsourcing rose by 69.9% year-over-year while maintaining stable costs, leading to improved gross margins.
Shareholders' equity increased by 6.3% to PLN 276.0 million, and total assets grew by 8.8% to PLN 344.7 million.

Review Report of the Interim Condensed Financial Statement: H1 2022

The review confirms that PCF Group Spółka Akcyjna’s condensed interim financial statements for the period ending 30 June 2022 comply with International Financial Reporting Standard 34 and European Commission regulations. The statements include a balance sheet, income statement, statement of comprehensive income, changes in equity, cash‑flow statement for 1 January–30 June 2022, and selected explanatory notes. The audit firm performed a review engagement under Polish National Standard 2410, equivalent to International Review Standard 240, focusing on inquiries of financial and accounting personnel and analytical procedures. The scope is narrower than a full audit, so the review does not provide assurance that all material matters would be identified; consequently no audit opinion is issued. The engagement was conducted by Grant Thornton Frąckowiak Spółka z ograniczoną odpowiedzialnością sp. k., a member of Grant Thornton International Ltd, with the key auditor Jan Letkiewicz delivering the conclusion on 29 September 2022. The report indicates no findings that would lead to a statement that the interim financials were not prepared in accordance with IFRS 34. The review covers only the Polish entity PCF Group, focusing on its Warsaw‑based operations for the first half of 2022.

Grant Thornton Frąckowiak confirmed that PCF Group S.A.’s interim financial statements for H1 2022 comply with International Financial Reporting Standard 34.
The review engagement, concluded on 29 September 2022 by key auditor Jan Letkiewicz, identified no material issues regarding the preparation of the financial statements.
The scope of the engagement was limited to a review under Polish National Standard 2410 and International Review Standard 240, meaning no formal audit opinion was issued.
The financial documentation reviewed covers the period from 1 January 2022 to 30 June 2022, including the balance sheet, income statement, and cash-flow statement.
The review was restricted specifically to the Warsaw-based operations of the Polish entity PCF Group S.A.

Raport z Przeglądu Skróconego Śródrocznego Skonsolidowanego Sprawozdania Finansowego: 2022

The report presents the findings of a review conducted by Grant Thornton Frąckowiak on the condensed interim consolidated financial statements of PCF Group Spółka Akcyjna for the period from 1 January to 30 June 2022. The review was performed in accordance with the Polish Standard for Review of Interim Financial Information 2410, equivalent to International Standard on Review Engagements (ISRE) 2410, and was based on the company’s internal controls and accounting records. The scope of the review involved inquiry procedures directed at finance and accounting personnel, analytical procedures, and other review activities. Because the engagement is a review rather than an audit, it does not provide assurance that all material matters have been identified; therefore, no audit opinion is expressed.

The review concluded that nothing was found to indicate that the condensed interim consolidated financial statements were not prepared in all material respects in accordance with International Financial Reporting Standard 34, as adopted by European Union regulation. The financial statements cover the entire PCF Group, with its dominant entity headquartered in Warsaw, and include balance sheet, income statement, comprehensive income, changes in equity, and cash‑flow statements for the first half of 2022. The report is dated 29 September 2022 and signed by Jan Letkiewicz, a senior auditor of the firm.

Grant Thornton Frąckowiak performed a review of PCF Group S.A.’s condensed interim consolidated financial statements for the period of 1 January to 30 June 2022.
The review concluded that the financial statements were prepared in accordance with International Financial Reporting Standard 34 as adopted by the European Union.
The engagement was conducted under the Polish Standard for Review of Interim Financial Information 2410, which is equivalent to the International Standard on Review Engagements (ISRE) 2410.
The scope of the review included the balance sheet, income statement, comprehensive income, changes in equity, and cash-flow statements for the PCF Group.
The review process involved analytical procedures and inquiries of finance and accounting personnel, though it did not constitute a full audit and therefore provides no audit opinion.

Półroczne sprawozdanie Zarządu z działalności Grupy Kapitałowej: 1.01.2023 - 30.06.2023

AL. SOLIDARNOCI 171, Tel +48 22 887 34 30 PÓEROCZNE SPRAWOZDANIE ZARZADU Z DZIAEALNOSCI GRUPY KAPITALOWEJ PCF GROUP S.A. ORAZ SPÓEKI PCF GROUP S.A. ZA 0KRES 1.01.2023 - 30.06.2023 za okres 1.01.2023 – 30.06.2023 r. (dane w tys. zł, chyba że zaznaczono inaczej) Niniejsze półroczne sprawozdanie z działalności Grupy Kapitałowej PCF Group S.A. i spółki PCF Group S.A. za okres 1.01.2023 –30.06.2023 r. zostało sporządzone na podstawie § 70 ust. 1 pkt 4, 6, 7 oraz § 71 ust.

PCF Group S.A. generated positive operating cash flow of 48.5 million PLN in the first half of 2023, an 82% increase compared to the same period in 2022.
The company's cash and cash equivalents increased by 62% to 150.255 million PLN by June 30, 2023, largely due to a 50% increase in equity (135.2 million PLN) from the issuance of Series E and F shares.
PCF Group S.A. aims to achieve at least 3.0 billion PLN in total revenue between 2023 and 2027.
A new subsidiary, People Can Fly Ireland Limited, was registered on February 2, 2023, to provide publishing services within the Group.
PCF Group S.A. settled with OÜ Blite Fund on August 21, 2023, agreeing to pay 2.05 million PLN as an additional payment for the acquisition of Incuvo S.A. shares.

Review Report of the Condensed Interim Consolidated Financial Statement: 2023

The review confirms that the condensed interim consolidated financial statements of PCF Group Spółka Akcyjna, covering the period from 1 January to 30 June 2023 and prepared in accordance with International Financial Reporting Standard 34, are presented fairly in all material respects. The statements include the balance sheet as of 30 June 2023, income statement, statement of comprehensive income, changes in equity and cash‑flow statement for the six‑month period, along with selected explanatory notes. The audit engagement was performed by Grant Thornton Polska Prosta spółka akcyjna, a member of the Grant Thornton International network, under the Polish National Standard for Review 2410 (equivalent to ISA 240). The review involved inquiry procedures directed at finance and accounting personnel, analytical testing, and other review procedures. Because the scope of a review is limited compared to an audit, no assurance is provided that all material misstatements have been identified; consequently, the engagement does not express an audit opinion. The review was concluded on 21 September 2023, with the auditor’s report signed by Jan Letkiewicz, a qualified auditor (registration number 9530). The document applies exclusively to the Polish jurisdiction and pertains solely to the PCF Group’s consolidated interim financial reporting for the first half of 2023.

Grant Thornton Polska confirmed that PCF Group S.A.’s condensed interim consolidated financial statements for the first half of 2023 are presented fairly in all material respects.
The review covered the period from 1 January to 30 June 2023 and was prepared in accordance with International Financial Reporting Standard 34.
The financial documentation reviewed includes the balance sheet as of 30 June 2023, the income statement, the statement of comprehensive income, changes in equity, and the cash-flow statement.
The engagement was conducted under the Polish National Standard for Review 2410, which is equivalent to ISA 240.
Jan Letkiewicz, a qualified auditor (registration number 9530), signed the review report on 21 September 2023.

Report on the Review of the Condensed Interim Financial Statement: 2023

The report presents the conclusion of a review conducted by Grant Thornton Polska on PCF Group Spółka Akcyjna’s condensed interim financial statements for the period ending 30 June 2023. The review covered the balance sheet, income statement, statement of comprehensive income, changes in equity and cash‑flow statement for the first half of 2023, along with selected explanatory notes. The statements were prepared in accordance with International Financial Reporting Standard 34 and the European Commission’s regulatory framework for interim reporting.

The engagement followed the National Standard of Review 2410, equivalent to International Standards on Review Engagements. The review involved inquiry procedures directed at the company’s finance and accounting personnel, analytical testing, and other review procedures. Because a review provides only limited assurance, the auditors do not express an opinion on the financial statements but state that no material issues were identified that would lead them to believe the statements are not prepared in all material respects according to IFRS 34.

The scope of the review is limited to the interim period and does not extend to a full audit. No specific data points or financial metrics are disclosed in the summary, as the report focuses on the assurance level rather than detailed performance figures. The conclusion is dated 21 September 2023 and signed by the lead auditor, Jan Letkiewicz.

Grant Thornton Polska completed a review of PCF Group S.A.’s condensed interim financial statements for the six-month period ending 30 June 2023.
The auditors concluded that no material issues were identified that would suggest the financial statements fail to comply with International Financial Reporting Standard 34.
The review engagement was conducted in accordance with the National Standard of Review 2410, which aligns with International Standards on Review Engagements.
The scope of the engagement was limited to interim financial reporting procedures, including analytical testing and inquiries of finance personnel, rather than a full audit.
The final review conclusion was formally issued and signed by lead auditor Jan Letkiewicz on 21 September 2023.

Consolidated Quarterly Report: Q3 2023

(dane w tys. zł, chyba że zaznaczone inaczej) (dane w tys. zł, chyba że zaznaczone inaczej) Grupa Kapitałowa PCF Group Spółka Akcyjna WYBRANE DANE W PRZELICZENIU NA EUR PLN EUR 30.09.2023 r. 31.12.2022 r. 30.09.2023 r. 31.12.2022 r.

PCF Group S.A. reported a net loss of 13,448 thousand PLN for the period of January 1 to September 30, 2023, a significant decrease from the 42,133 thousand PLN net profit in the same period of 2022.
Total comprehensive income for PCF Group S.A. also saw a substantial decline, moving from a profit of 51,312 thousand PLN (January 1 - September 30, 2022) to a loss of 11,797 thousand PLN (January 1 - September 30, 2023).
The company's primary business is the production and publishing of video games, with a strategic goal to achieve at least 3.0 billion PLN in total revenue between 2023 and 2027.
PCF Group S.A. raised 134,390,087.40 PLN through a public offering of Series F shares, with Square Enix Limited subscribing to 3,342,937 shares, representing 10.00% of the company's share capital.
Funds from the Series F share offering will be used to increase production teams for games like Project Dagger, Project Bifrost, and Project Victoria.

Skonsolidowany Raport Półroczny: H1 2024

WARSZAWA | 30 WRZENIA 2024 ROKU PEOPLE ZA 0KRES 01.01.2024 - 30.06.2024 Grupa Kapitałowa PCF Group Spółka Akcyjna WYBRANE DANE W PRZELICZENIU NA EUR PLN EUR 30.06.2024 r. 31.12.2023 r. 30.06.2024 r. 31.12.2023 r.

PCF Group S.A. reported a net loss of (33,289) for H1 2024, significantly worse than the (13,070) loss in H1 2023. The basic loss per share increased from (0.43) PLN in H1 2023 to (0.93) PLN in H1 2024.
The company is actively seeking approximately 350 million PLN in new financing for 2025-2026 to maintain its self-publishing operations and continue its strategy of developing and publishing its own games.
PCF Group S.A. is preparing detailed five-year financial forecasts (2025-2029) based on economic conditions and a pipeline of new games, including scenarios for various risks and mitigation actions.
The management board has suspended analytical work on a motivational program tied to achieving 1.5 billion PLN in cumulative EBITDA from 2023-2027, pending the outcome of strategic options review and securing new financing.
The company's strategy, updated on January 31, 2023, indicates that the management board does not anticipate recommending dividend payouts until the company generates revenue, profits, and positive cash flows from its own publishing activities, expected no earlier than for the 2025 financial year.

Półroczne sprawozdanie Zarządu z działalności Grupy Kapitałowej PCF Group S.A.: 1 stycznia 2024 – 30 czerwca 2024

WARSZAWA | 30 WRZENIA 2024 ROKU PEOPLE PÓEROCZNE SPRAWOZDANIE ZARZADU Z DZIAEALNOSCI GRUPY KAPITALOWEJ PCF GROUP S.A. ORAZ SPÓEKI PCF GROUP S.A. ZA 0KRES 01.01.2024 - 30.06.2024 za okres 01.01.2024 – 30.06.2024 r. (dane w tys. zł, chyba że zaznaczono inaczej) Niniejsze półroczne sprawozdanie z działalności Grupy Kapitałowej PCF Group S.A. i spółki PCF Group S.A. za okres 01.01.2024 – 30.06.2024 r. zostało sporządzone na podstawie § 70 ust. 1 pkt 4, 6, 7 oraz § 71 ust.

PCF Group S.A. reported a 29% increase in sales revenue, reaching PLN 70.1 million in H1 2024, up from PLN 54.3 million in H1 2023, driven by the release of Bulletstorm VR and revenue from Project Maverick, despite a decrease in revenue from Project Gemini.
The cost of services sold increased by 134% to PLN 84.4 million in H1 2024 (from PLN 36.0 million in H1 2023), primarily due to increased costs associated with Project Maverick and Bulletstorm VR production.
PCF Group S.A. terminated two revolving credit agreements with Bank Pekao S.A. totaling PLN 30 million and EUR 4.426 million, effective September 2024, without having utilized any of the credit.
The company signed a short-term executive agreement on January 30, 2024, with Square Enix Limited to continue development on Project Gemini, following the expiration of the previous agreement, to finalize strategic discussions.
PCF Group S.A. faces significant revenue concentration risk, with ongoing production and publishing agreements for Project Gemini (Square Enix Limited), Project Maverick (Microsoft Corporation), and Project Echo (Krafton Inc.).

Skonsolidowany raport kwartalny: Q3 2024

WARSZAWA | 26 LISTOPADA 2024 ROKU (dane w tys. zł, chyba że zaznaczone inaczej) PEOPLE ZAKOCZONY 30 WRZENIA 2024 ROKU (dane w tys. zł, chyba że zaznaczone inaczej) Grupa Kapitałowa PCF Group Spółka Akcyjna WYBRANE DANE W PRZELICZENIU NA EUR PLN EUR 30.09.2024 r. 31.12.2023 r. 30.09.2024 r. 31.12.2023 r.

PCF Group S.A. reported a net loss attributable to shareholders of (33,151) thousand PLN for the nine months ended September 30, 2024, compared to a loss of (15,352) thousand PLN in the same period of 2023.
Basic and diluted earnings per share (EPS) from continuing operations were (0.93) PLN and (0.91) PLN respectively for the nine months ended September 30, 2024, worsening from (0.43) PLN and (0.42) PLN in the prior year.
Total revenue from sales for the nine months ended September 30, 2024, reached 131,886 thousand PLN, with 54,890 thousand PLN from Europe and 76,996 thousand PLN from other countries.
The Group decided to discontinue work on 'Project Dagger' on April 5, 2024, resulting in a 100% write-off of incurred development costs totaling 68,331 thousand PLN in 2023.
PCF Group S.A. launched 'Bulletstorm VR' on PICO platforms on September 19, 2024, and released a significant update (Update 1.4) for the game on other VR platforms.

Consolidated Quarterly Report: Q1 2025

WARSZAWA | 29 MAJA 2025 ROKU (dane w tys. zł, chyba że zaznaczone inaczej) PEOPLE (dane w tys. zł, chyba że zaznaczone inaczej) Grupa Kapitałowa PCF Group Spółka Akcyjna WYBRANE DANE W PRZELICZENIU NA EUR PLN EUR 31.03.2025 r. 31.12.2024 r. 31.03.2025 r. 31.12.2024 r.

The company experienced a net loss of 3,855 thousand PLN in Q1 2025, a significant increase from the 864 thousand PLN net loss in Q1 2024.
Revenue from sales decreased substantially from 56,881 thousand PLN in Q1 2024 to 9,492 thousand PLN in Q1 2025.
The company is gradually withdrawing from VR game publishing, with the last project, Bison, scheduled for release in Q4 2025.
Work on Project Victoria, a self-published game, has resumed with an accelerated early access release planned for 2025, supported by an experienced development team primarily in Canada.
The company began a new collaboration with Sony Interactive Entertainment LLC on March 13, 2025, to produce a prototype for a new video game, Project Delta, with revenue recognition starting in Q1 2025.

Półroczne sprawozdanie Zarządu z działalności Grupy Kapitałowej PCF Group S.A.

WarSzawa | 30 WRZESNIA 2025 ROKU PEOPLE PÓŁROCZNE SPRAWOZDANIE ZARZĄDU Z DZIAŁALNOŚCI GRUPY KAPITAŁOWEJ PCF GROUP S.A. ORAZ SPÓŁKI PCF GROUP S.A. KAPITALOWEJ PCFGROUP S.A. ORAZSPÓEKI PCF GROUP S.A. ZA OKRES 01.01.2025- 30.06.2025 ZA 0KRES 01.01.2025 - 30.06.2025 za okres 01.01.2025–30.06.202 5r.(dane w tys. zł, chyba że zaznaczono inaczej) Niniejsze półroczne sprawozdanie z działalności Grupy Kapitałowej PCF Group S.A. i spółki PCF Group S.A. za okres 01.01.2025 – 30.06.2025 r.

PCF Group S.A. experienced a significant reduction in its development teams, laying off over 60 people from the Gemini project due to the expiration of an agreement with Square Enix Limited, and over 50 people from the Bifrost project due to a lack of funding for its self-publishing model, both occurring around June 1, 2025.
The company's cash and cash equivalents decreased by 87% from 83,426 thousand PLN on June 30, 2024, to 11,190 thousand PLN on June 30, 2025, with net cash flows for the period being negative 46,370 thousand PLN.
PCF Group's equity decreased by 12% (29.5 million PLN) as of June 30, 2025, compared to December 31, 2024, primarily due to losses incurred during the reporting period.
PCF Group decided to gradually withdraw from VR game publishing activities, though it agreed with Incuvo S.A. on March 6, 2025, to complete the Bison project, with a planned release in Q4 2025, and Incuvo S.A. contributing to some production costs in exchange for a share of future revenues.
The company has high revenue concentration risk, relying on agreements with publishers like Square Enix Limited (for Outriders and Project Gemini), Microsoft Corporation (Project Maverick), Krafton Inc. (Project Echo and Project Zulu), and Sony Interactive Entertainment LLC (Project Delta).

Letter to Shareholders: 2024

The letter explains that 2024 was a challenging year for the video‑game industry and for PCF Group S.A., prompting decisive actions to protect financial stability. In April, the company discontinued the Dagger project after a partner withdrawal and recorded a 100 % write‑off of its costs, followed by the cancellation of Red in September. These decisions reduced consolidated earnings for the first half of 2024 and lowered fixed‑asset values by PLN 7.7 million. The board also halted work on Victoria and Bifrost in December, laying off over 120 employees; a PLN 154.964 million impairment was booked for Bifrost, while Victoria’s costs were retained due to an upcoming early‑access release.

To counter market headwinds, the board launched a strategic options review in August aimed at securing external investment or restructuring. The effort failed, leaving the group to reassess short‑ and long‑term plans. Concurrently, the company tightened its self‑publishing pipeline, focusing on work‑for‑hire (WFH) contracts. In early 2024, a short‑term agreement with Square Enix for Gemini led to a workforce reduction of 30 staff, yet the project’s revenue only covered direct costs. New WFH deals were secured with Krafton (Echo), Sony Interactive Entertainment (Delta), and Microsoft (Project Maverick), bolstering revenue streams.

The VR segment was largely exited, with Incuvo’s Bison slated as the final title. Game On, another subsidiary, saw limited improvement in 2024‑25. Overall, the letter acknowledges losses and staff cuts but stresses a commitment to rebuilding through strategic partnerships, focused development on AAA action titles, and continued investment in high‑quality games for a global audience.

PCF Group S.A. underwent a massive restructuring in 2024, cancelling four major projects (Dagger, Red, Victoria, and Bifrost) and recording a PLN 154.964 million impairment for Bifrost alone.
The company significantly reduced its workforce, laying off over 120 employees in December following the cancellation of Victoria and Bifrost, in addition to 30 staff cuts earlier in the year related to the Gemini project.
Financial stability was severely impacted by project cancellations, including a 100% write-off of Dagger costs and a PLN 7.7 million reduction in fixed-asset values during the first half of 2024.
The company has pivoted its business model toward work-for-hire (WFH) contracts, securing new partnerships with Krafton (Echo), Sony Interactive Entertainment (Delta), and Microsoft (Project Maverick) to stabilize revenue.
A strategic review initiated in August to seek external investment or restructuring failed, forcing the company to abandon its VR segment and narrow its focus to AAA action titles.

Report on the Review of the Condensed Interim Financial Statement: 2025

The report presents the findings of a review conducted by Grant Thornton Polska on the condensed interim financial statements of PCF Group Spółka Akcyjna for the period from 1 January to 30 June 2025. The review was performed in accordance with the Polish Standard for Review Engagements 2410, equivalent to International Standard on Review Engagements, and focused on the company’s compliance with IAS 34 Interim Financial Reporting as adopted by EU regulations. The scope included examination of the balance sheet, income statement, statement of comprehensive income, changes in equity, cash‑flow statement and selected explanatory notes.

Key conclusions indicate that no material misstatement was identified and the interim statements are presented in all significant respects in accordance with IAS 34. The review involved analytical procedures and inquiries of finance and accounting personnel, but did not provide assurance equivalent to an audit. The report highlights specific disclosures in explanatory notes: a valuation test for the cash‑generating unit related to development costs of a new game, noting uncertainty in projected cash flows due to potential deviations in early‑access sales; and an assessment of deferred tax assets amounting to PLN 52,659 thousand, reflecting uncertainty in five‑year tax profit forecasts and the feasibility of the company’s strategy.

The geographic coverage is limited to PCF Group’s operations in Poland, and the time frame covers the first half of 2025. The review methodology relied on management’s internal controls and financial records, with no sampling or audit evidence beyond the scope of a review engagement.

Grant Thornton Polska concluded that PCF Group’s interim financial statements for the first half of 2025 comply with IAS 34 standards, with no material misstatements identified.
The review highlighted uncertainty regarding the valuation of a cash-generating unit tied to new game development costs, specifically citing potential volatility in early-access sales projections.
PCF Group carries deferred tax assets totaling PLN 52,659 thousand, which are subject to risks associated with five-year profit forecasts and the execution of the company’s strategic plan.
The review was conducted under the Polish Standard for Review Engagements 2410 and involved analytical procedures and management inquiries, though it does not provide the same level of assurance as a full audit.
The scope of the financial review was limited to the period between 1 January and 30 June 2025 and focused exclusively on PCF Group’s operations within Poland.

Information on the State of Application of Best Practices 2021

PCF GROUP SA ( 2/2022) PCF Group Spółka Akcyjna - informacja o stanie stosowania Dobrych Praktyk 2021 Na podstawie par. 29 ust. 3 Regulaminu Giełdy Papierów Wartościowych w Warszawie S.A. PCF Group Spółka Akcyjna przekazuje informację o stanie stosowania Dobrych Spółka niniejszym informuje o rozpoczęciu stosowania zasad 4.1. oraz 4.3. DPSN 2021. POLITYKA INFORMACYJNA I KOMUNIKACJA Z INWESTORAMI 1.1.

PCF Group SA has begun applying principles 4.1 and 4.3 of the DPSN 2021 best practices.
The company does not apply the principle of publishing financial results as quickly as possible after the reporting period, citing increasing scope of reports, audit procedures, and the complexity of its Capital Group as reasons.
PCF Group SA does not apply a diversity policy for its management and supervisory boards, nor does it aim for a minimum 30% representation of minorities in these bodies, prioritizing qualifications and experience over other criteria.
The company does not apply the principle of presenting a gender pay gap indicator, stating that due to the industry's employment structure, a cross-sectional indicator would be misleading, though it maintains equal pay for identical positions.
PCF Group SA does not have an internal audit function or an internal auditor, and the management board does not prepare reports on the effectiveness of internal control, risk management, and compliance systems for the supervisory board.

Szacunkowe wyniki finansowe za I półrocze 2022 r.

The report announces preliminary consolidated financial results for PCF Group S.A. and its capital group for the first half of 2022, following earlier interim reports. The key figures presented are revenue from sales at PLN 90.6 million, EBITDA of PLN 29.0 million, and net profit of PLN 25.5 million. These numbers are provisional and will be reviewed by an external auditor before finalization. The definitive half‑year financial statements, covering the six months ending 30 June 2022, are scheduled for publication on 29 September 2022. The scope of the data is limited to consolidated results for the entire PCF Group, with no breakdown by geographic region or individual business segments disclosed. The methodology is not detailed beyond the indication that an audit will verify the estimates; no survey or sample size information is provided. The report serves to inform shareholders and market participants of the group’s early performance, highlighting a strong profitability profile with EBITDA and net profit margins exceeding 30 % of sales. The forthcoming official report will provide audited confirmation of these figures and any adjustments made during the review process.

PCF Group S.A. reported preliminary consolidated revenue of PLN 90.6 million for the first half of 2022.
The company achieved a net profit of PLN 25.5 million and an EBITDA of PLN 29.0 million for the six-month period ending 30 June 2022.
Profitability metrics remain strong, with both EBITDA and net profit margins exceeding 30% of total sales.
These financial results are provisional and currently subject to an external audit.
The final, audited half-year financial statements for the PCF Group are scheduled for publication on 29 September 2022.