Grant Thornton

Investment

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Raport z Przeglądu Skróconego Śródrocznego Skonsolidowanego Sprawozdania Finansowego: 2025

The independent auditor’s review of the interim consolidated financial statements for PCF Group S.A. covers the first half of the 2025 fiscal year, ending June 30, 2025. Conducted by Grant Thornton Polska, the review evaluates the financial position, results, and cash flows of the Warsaw-based capital group. The assessment was performed in accordance with International Accounting Standard 34 and National Review Standard 2410, focusing on analytical procedures and inquiries rather than a full-scale audit. The findings indicate that the financial statements are prepared in all material respects according to established European Commission regulations. However, the analysis highlights two critical areas of financial uncertainty that do not modify the auditor’s final conclusion but warrant significant attention. First, there is a noted risk regarding the impairment testing of a cash-generating unit valued at 101.05 million PLN. This unit consists of capitalized development costs for a new game intended for self-publishing. The auditor emphasizes uncertainty regarding the underlying cash flow projections, specifically the potential for actual sales figures to deviate from forecasts following the game’s early access launch. Second, the review identifies uncertainty regarding the realization of deferred tax assets totaling 53.54 million PLN. This concern stems from the group’s current five-year tax result forecasts, which reflect an inability to execute the corporate strategy in its previous form. These points underscore a transitional or challenging period for the group’s development and publishing model. The review concludes that while the financial reporting is compliant, the group faces specific risks related to the commercial performance of its intellectual property and the long-term viability of its tax assets under a shifting strategic framework.

investment market-analysis poland

Grant ThorntonSept 2025

Financial

Raport z Przeglądu Skróconego Śródrocznego Sprawozdania Finansowego: PCF Group S.A. H1 2025

The independent auditor’s review of the condensed interim financial statements for PCF Group S.A. covers the first half of the 2025 fiscal year, specifically the period from January 1 to June 30, 2025. The review encompasses the statement of financial position, the statement of profit or loss and other comprehensive income, the statement of changes in equity, and the statement of cash flows. Conducted by Grant Thornton Polska in accordance with International Standard on Review Engagements 2410, the assessment concludes that no material modifications are required for the financial statements to comply with International Accounting Standard 34 regarding interim financial reporting. While the auditor issued an unmodified conclusion, the findings highlight significant areas of financial uncertainty related to the company’s development pipeline and tax assets. A primary concern involves a valuation test for a cash-generating unit valued at 133.68 million PLN, which consists of capitalized development costs for a new game intended for self-publishing. The auditor notes substantial uncertainty regarding the cash flow projections for this project, particularly concerning potential deviations in sales volume following the game’s planned early access release. Further financial risk is identified regarding the realization of deferred tax assets totaling 52.66 million PLN. This uncertainty stems from the company’s current five-year tax result forecasts, which account for the inability to execute the corporate strategy in its previous form. These findings suggest a transitional or challenging period for the studio as it navigates shifts in its business model and the commercial performance of its internal development projects within the Polish and global gaming markets.

investment market-analysis poland

Grant ThorntonSept 2025

Legal

Sprawozdanie z badania rocznego skonsolidowanego sprawozdania finansowego PCF Group Spółka Akcyjna 2024

The 2024 consolidated financial statements for PCF Group S.A., known globally as People Can Fly, present a fair and accurate representation of the Group’s financial position in accordance with International Financial Reporting Standards. The Group maintained a stable financial foundation throughout the fiscal year, with auditors issuing an unqualified opinion and confirming no material uncertainties regarding its ability to continue as a going concern. This assessment covers the Group’s international operations and development activities, focusing on the valuation of complex revenue streams and significant intangible assets. Key financial highlights include the reporting of 190.4 million PLN in revenue derived from intricate customer contracts and the management of 111.6 million PLN in intangible assets tied to ongoing game development projects. However, the fiscal year was marked by strategic adjustments, resulting in an 18.1 million PLN impairment charge on goodwill, which reduced the remaining balance to 33.3 million PLN. Furthermore, shifts in long-term strategy and tax projections through 2029 have introduced specific uncertainties regarding the realization of 52.9 million PLN in deferred tax assets, requiring careful valuation and monitoring. The Group’s reporting practices comply with all material legal requirements, including the technical specifications of the European Single Electronic Format. The audit process, conducted by Grant Thornton for the second consecutive year, affirmed the independence of the auditing body and the consistency between the management reports and the underlying financial data. These findings underscore a period of strategic transition for the Group as it balances significant development investments with evolving market projections and tax planning strategies.

investment market-analysis europe+1

Grant ThorntonApr 2025

Legal

Independent Auditor's Report on the Annual Financial Statements of PCF Group: 2024

This independent auditor’s report, prepared by Grant Thornton Polska, provides a professional evaluation of the annual financial statements for PCF Group S.A. for the fiscal year ending December 31, 2024. The audit concludes with an unqualified opinion, stating that the financial statements provide a fair and clear view of the company’s financial position, results, and cash flows in accordance with International Financial Reporting Standards (IFRS) and applicable Polish law. The scope of the audit covers the Warsaw-based game development company’s balance sheet, income statement, and cash flow statements. Key findings highlight several critical audit matters specific to the gaming industry. Sales revenue for 2024 reached 166.5 million PLN, while contract assets and liabilities were valued at 9.6 million PLN and 5.8 million PLN, respectively. The auditors emphasized the complexity of revenue recognition due to variable compensation elements, such as bonuses and warrants, and the subjective nature of estimating work progress on development contracts. Significant attention was directed toward asset valuation and impairment. The company holds 42.2 million PLN in subsidiary investments, which saw an impairment loss of 18.9 million PLN during the period. Additionally, PCF Group maintains 94.7 million PLN in capitalized development costs for games in progress and 44.3 million PLN in other intangible assets. The report includes an explanatory note regarding 52.7 million PLN in deferred tax assets, noting uncertainty regarding their realization between 2025 and 2029 due to shifts in the company’s business strategy. The methodology followed National Auditing Standards and EU Regulation 537/2014. The audit involved verifying management’s estimates, testing internal controls, and evaluating discounted cash flow models used for impairment tests. This report marks the second consecutive year Grant Thornton has served as the independent auditor for PCF Group.

investment market-analysis europe+1

Grant ThorntonApr 2025

Financial

Raport z Przeglądu Skróconego Śródrocznego Skonsolidowanego Sprawozdania Finansowego: 2024

This independent auditor’s report, prepared by Grant Thornton Polska, presents the findings of a semi-annual review of the consolidated financial statements for PCF Group S.A., a prominent Polish video game developer. The review covers the first half of the 2024 fiscal year, specifically the period from January 1 to June 30, 2024. The scope includes the consolidated statement of financial position, profit and loss, comprehensive income, changes in equity, and cash flows, all evaluated under International Accounting Standard 34 regarding interim financial reporting. The analysis concludes that the financial statements are prepared fairly in all material respects. However, the report highlights a critical material uncertainty regarding the Group’s ability to continue as a going concern. This uncertainty stems from the Group's strategic shift toward self-publishing and the production of original intellectual property, which requires significant additional capital. While management is actively pursuing new financing to sustain this strategy, the success of these efforts is not guaranteed. A significant portion of the Group’s assets is tied to intangible assets, specifically development work in progress valued at 165.28 million PLN as of June 30, 2024. These assets primarily represent ongoing internal game development projects. While management asserts that these projects meet the criteria for capitalization under International Accounting Standard 38, the auditor emphasizes that the five-year cash flow forecasts supporting these valuations are heavily dependent on uncertain future events, including the successful acquisition of external funding and the future performance of games currently in production.

investment europe game-development+1

Grant ThorntonSept 2024

Financial

Raport z przeglądu skróconego śródrocznego sprawozdania finansowego: PCF Group S.A. H1 2024

The independent auditor’s review of the condensed interim financial statements for PCF Group S.A. covers the first half of the 2024 fiscal year, specifically the period from January 1 to June 30, 2024. The assessment focuses on the company’s financial position, results of operations, and cash flows in accordance with International Accounting Standard 34. While the review concluded that the financial statements were prepared fairly in all material respects, the findings highlight significant risks regarding the company’s future operations and its ability to fund ongoing projects. A primary concern identified is a material uncertainty that raises significant doubt about the company's ability to continue as a going concern in its current scope. This uncertainty is linked to the necessity of securing additional financing to support a strategy focused on self-publishing and the development of internal game titles. Although management expresses confidence in obtaining the required capital, the success of these efforts remains unconfirmed, posing a risk to the long-term stability of the business. Furthermore, the financial statements reflect 239.5 million PLN in intangible assets related to ongoing development work for new games. The valuation and capitalization of these assets depend heavily on the company’s ability to complete development, which is contingent upon securing future funding. Management’s five-year cash flow forecast assumes the successful acquisition of new contracts and financing; however, the realization of these projections is subject to future events that are not guaranteed. The scope of this review was conducted under professional standards for interim reporting, which provide a lower level of assurance than a full statutory audit.

investment market-analysis poland

Grant ThorntonSept 2024

Legal

Independent Auditor's Report on the Remuneration Report: PCF Group S.A.

The engagement was undertaken to provide an independent assessment of the remuneration report prepared by the Supervisory Board of PCF Group Spółka Akcyjna for the calendar year 2023. The primary objective was to verify that the report contains all information required under Articles 90g § 1‑5 and 8 of the Polish Public Offering Act, thereby delivering reasonable assurance of its completeness for shareholders and the supervisory board. The audit was performed in accordance with the Polish Standard of Assurance Services KSUA 3000 (Z), which aligns with the International Standard on Assurance Engagements 3000. Procedures included a detailed review of the remuneration report, cross‑checking disclosed data against the statutory requirements, examination of the General Meeting resolutions on remuneration policy, and verification of the list of individuals for whom disclosure is mandatory. Inquiries were made to the preparers and, where appropriate, directly to the disclosed persons. The auditor did not evaluate the accuracy of disclosed amounts, the adequacy of the report for its intended purpose, or the effectiveness of internal controls over the report’s preparation. The findings indicate that, in all material respects, the remuneration report satisfies the completeness criteria set out in the relevant legal provisions. No material omissions were identified, and the disclosed information meets the level of detail mandated by the Act. Consequently, the auditor expressed a conclusion that the report contains all elements required by the statutory framework. The engagement adhered to ethical and independence standards prescribed by the International Ethics Standards Board for Accountants and to Polish quality‑control regulations. The report is intended solely for the shareholders’ meeting and the supervisory board and is not to be used for any other purpose. Limitations of the audit scope, including the absence of testing for the correctness of figures, were explicitly disclosed.

salary employment poland

Grant ThorntonApr 2024

Financial

Raport z przeglądu skróconego śródrocznego skonsolidowanego sprawozdania finansowego PCF Group

The financial review conducted by Grant Thornton Polska provides an independent assessment of the interim condensed consolidated financial statements for PCF Group S.A., a prominent international game development holding company. The analysis covers the first half of the 2023 fiscal year, specifically the period from January 1 to June 30, 2023. The scope of the review encompasses the consolidated statement of financial position, the statement of profit or loss and other comprehensive income, the statement of changes in equity, and the statement of cash flows, alongside selected explanatory notes. The methodology employed follows National Standard on Review Engagements 2410, which aligns with International Standard on Review Engagements 2410. This process primarily involves inquiries with personnel responsible for financial and accounting matters, as well as the application of analytical and other review procedures. Because a review is significantly narrower in scope than a full audit conducted in accordance with National Auditing Standards, the auditors do not express a formal audit opinion. Instead, the process is designed to provide moderate assurance regarding the reliability of the financial data presented by the management board. The primary conclusion of the review is a clean, unqualified conclusion. The auditors state that nothing came to their attention to suggest that the financial statements were not prepared, in all material respects, in accordance with International Accounting Standard 34 regarding interim financial reporting as adopted by the European Union. This confirmation validates the integrity of the financial reporting for the Warsaw-based group during the specified six-month window, ensuring that the consolidated financial position and performance of the parent company and its subsidiaries are presented fairly under the applicable regulatory framework.

investment mergers-acquisitions poland

Grant ThorntonSept 2023

Legal

Independent Auditor Report on PCF Group Remuneration Report 2022

This independent auditor’s report, prepared by Grant Thornton Frąckowiak P.S.A., provides a formal evaluation of the 2022 remuneration report for PCF Group S.A., a prominent Polish game development studio. The primary purpose of the document is to provide reasonable assurance regarding the completeness of the remuneration disclosures required under the Polish Act on Public Offering. The scope is limited to the 2022 fiscal year and focuses specifically on the compensation of the company’s Management Board and Supervisory Board members. The methodology employed follows the National Standard for Assurance Engagements 3000 (Z), which aligns with international auditing standards. Procedures included reviewing the content of the remuneration report against statutory requirements, examining corporate resolutions regarding pay policies, and verifying the list of individuals subject to disclosure. The auditor’s role was strictly defined to assess whether all legally mandated information was included with the required level of detail, rather than auditing the accuracy of the financial figures themselves or the effectiveness of the company's internal controls. The report concludes that the remuneration disclosures provided by PCF Group S.A. are complete in all material respects. It confirms that the company has met the specific requirements of Article 90g, paragraphs 1-5 and 8, of the Act on Public Offering. This finding ensures that the company remains in compliance with Polish regulatory standards for publicly traded entities regarding executive compensation transparency. The document was officially issued in Poznań on May 31, 2023, intended for the use of the company’s shareholders and Supervisory Board.

salary employment europe+1

Grant Thornton Frąckowiak P.S.A.May 2023

Financial

Raport z Przeglądu Skróconego Śródrocznego Sprawozdania Finansowego 2022

The independent auditor’s review of the condensed interim financial statements for PCF Group S.A. confirms that the company’s financial reporting for the first half of 2022 adheres to established international accounting standards. The review encompasses the financial position as of June 30, 2022, along with the statements of profit or loss, comprehensive income, changes in equity, and cash flows for the six-month period beginning January 1, 2022. This assessment covers the Warsaw-based parent entity of the People Can Fly group, a prominent developer in the global video game industry. The methodology employed by Grant Thornton Frąckowiak follows National Review Standard 2410, which aligns with International Standard on Review Engagements 2410. This process primarily involves inquiries with personnel responsible for financial and accounting matters, supplemented by analytical procedures and other evaluative techniques. It is important to note that a review is significantly narrower in scope than a full audit conducted in accordance with National Auditing Standards. Consequently, the auditors do not express a formal audit opinion, as the procedures performed do not guarantee the identification of all significant matters that might be uncovered during a comprehensive audit. The final conclusion indicates that no information came to the auditors' attention suggesting that the interim financial statements were not prepared, in all material respects, in accordance with International Accounting Standard 34 regarding interim financial reporting as adopted by the European Union. The findings validate the integrity of the financial disclosures provided by the management board for the specified period, ensuring transparency for shareholders regarding the company's fiscal health during the first half of the 2022 financial year.

investment mergers-acquisitions market-analysis+1

Grant ThorntonSept 2022

Legal

Independent Auditor's Report on the Annual Consolidated Financial Statements 2021

The independent auditor’s report prepared by Grant Thornton Frackowiak provides an unqualified opinion on the 2021 annual consolidated financial statements of PCF Group S.A. and its capital group. The audit confirms that the financial documentation presents a fair and clear view of the group’s financial position as of December 31, 2021, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The scope of the audit covers the consolidated statement of financial position, the statement of profit or loss, and the statement of cash flows for the fiscal year. Two key audit matters were identified as particularly significant due to the complexity of professional judgment required. First, the valuation of assets from contracts with customers and sales revenue, totaling 35.3 million PLN and 180.3 million PLN respectively, required careful scrutiny of variable compensation elements, bonuses, and warrants. Second, the accounting for the 2021 acquisitions of Game On Creative Inc., Incuvo S.A., and the Phosphor Games development team was highlighted. These transactions resulted in a recognized goodwill value of 54.6 million PLN, necessitating complex assessments of fair value and control acquisition timing. The audit was conducted in accordance with the Polish Act on Statutory Auditors and International Standards on Auditing. The methodology involved analyzing internal control environments, verifying management estimates against source documentation, and confirming the accuracy of budget assumptions. The report also confirms compliance with the European Single Electronic Format (ESEF) requirements and maintains that the auditors remained independent of the group throughout the three-year engagement period starting in 2019.

investment funding quality-assurance+1

Grant ThorntonApr 2022

Legal

Independent Auditor's Report on the Annual Financial Statements of PCF Group Spółka Akcyjna

The independent auditor’s report prepared by Grant Thornton Frackowiak provides a professional assessment of the annual financial statements for PCF Group Spółka Akcyjna, a Warsaw-based game development company, for the fiscal year ending December 31, 2021. The primary objective of the audit is to verify that the company’s financial reporting presents a fair and accurate view of its financial position, performance, and cash flows in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and the Polish Accounting Act. Key financial data points highlighted in the report include total sales revenue of 107.8 million PLN for the 2021 fiscal year. Additionally, the value of assets arising from contracts with customers was recorded at 22.4 million PLN as of the end of the reporting period. The audit identifies the recognition of revenue and contract assets as a key audit matter, requiring significant management judgment regarding the timing of contract formation, the aggregation of agreements, and the handling of contract modifications under IFRS 15. The audit methodology followed National Auditing Standards and International Standards on Auditing, ensuring compliance with the Act on Statutory Auditors and EU Regulation 537/2014. The auditor issued an unqualified opinion, stating that the financial statements are consistent with applicable laws, the company’s statutes, and properly maintained accounting records. This report marks the third consecutive year of Grant Thornton’s engagement with PCF Group, following their initial appointment for the 2019 fiscal year. The final opinion was signed by key statutory auditor Jan Letkiewicz on April 21, 2022.

investment europe poland

Grant ThorntonApr 2022