Quarterly Report of 11 bit studios S.A. for Q1 2019
The first quarter of 2019 marked a record-breaking start for 11 bit studios S.A., characterized by a significant financial turnaround and a six-fold year-over-year increase in revenue. Total revenue reached PLN 14.2 million, resulting in a net profit of PLN 4.4 million compared to a net loss of nearly PLN 1 million in the same period of 2018. This performance was primarily driven by the sustained commercial success of Frostpunk, which reached 1.4 million copies sold, and the publishing hit Moonlighter, which surpassed 500,000 units. The company’s liquidity position strengthened considerably, with total financial assets doubling to PLN 74.6 million, supported by robust cash flows and a substantial increase in bank deposits.
The strategic focus during this period centered on mitigating industry volatility through the expansion of the publishing division and the diversification of the product portfolio. By increasing the publishing budget to PLN 5 million per project and targeting a release cadence of one proprietary game per year, the company aims to stabilize long-term returns. Operational scaling is evident in the growth of the workforce to 112 employees, with a target of 150, and the progression of Project 8 into full production. Furthermore, the company successfully managed its infrastructure needs by securing a new office building in Warsaw, financed through a long-term investment facility.
Looking ahead, the company is prioritizing the porting of key titles to consoles and mobile platforms, alongside the highly anticipated launch of Children of Morta. With a stable management structure and a clear roadmap for both internal development and third-party publishing, 11 bit studios is positioned to leverage its strong cash reserves for future growth. The financial statements, prepared in accordance with IFRS, confirm a healthy balance sheet with no material legal risks or impairment threats to its intangible assets, which include PLN 18.1 million in development work and completed games.
