PCF Group

PCF Group S.A. has entered into a production and publishing agreement with Incuvo S.A. to adapt an existing title from the People Can Fly portfolio for virtual reality platforms. This strategic partnership focuses on implementing necessary technical changes and code adjustments to ensure compatibility with all major VR hardware and software ecosystems. The agreement marks a significant expansion of the company’s intellectual property into the immersive technology segment, with a scheduled release window targeting the end of 2023.

Under the financial terms of the contract, PCF Group S.A. serves as the publisher and assumes full responsibility for financing the production. Payments to Incuvo S.A. are structured around the successful completion of specific development milestones. The commercial arrangement follows a standard industry model where Incuvo S.A. becomes eligible for royalty payments only after the publisher has fully recouped its investments in production, promotion, and distribution. The specific royalty rates are tiered based on the total sales revenue generated by the VR title.

The scope of this agreement is global, covering all significant virtual reality platforms available in the market. The contract does not contain unusual provisions or specific penalties that deviate from standard market practices for high-end software development and publishing. This collaboration leverages Incuvo’s technical expertise in VR porting and development to maximize the commercial reach of PCF Group’s established gaming assets within the rapidly evolving virtual reality industry.

This regulatory report, issued on December 13, 2021, by PCF Group S.A., discloses previously delayed inside information regarding the acquisition of a controlling stake in Incuvo S.A. The primary purpose of the announcement is to fulfill European Union Market Abuse Regulation (MAR) requirements following the formal execution of an investment agreement.

The transaction involves PCF Group S.A. acquiring between 50% plus one share and 53% of the shares in Incuvo S.A., a Katowice-based developer specializing in virtual reality (VR) gaming and VR porting. A significant portion of this acquisition, at least 49.01%, was negotiated with the Estonian-based shareholder OÜ Blite Fund. The initial non-binding term sheet was signed on October 28, 2021, which established an exclusivity period for negotiations that lasted until December 8, 2021.

The disclosure explains that the public announcement was delayed from its original October date to protect the company’s interests and ensure the integrity of the negotiation process. Management determined that immediate disclosure could have invited third-party interference, potentially worsening the transaction terms or leading to public misinterpretation of the company's value while the deal's outcome remained uncertain. The scope of the report is focused on the Polish and Estonian corporate entities involved, marking a strategic expansion for PCF Group into the VR industry segment. The document confirms that all legal criteria for delaying inside information were met and that the Polish Financial Supervision Authority would be notified of the delay accordingly.

PCF Group S.A. has officially expanded its development capabilities through the acquisition of a controlling interest in Incuvo S.A., a Katowice-based studio specializing in virtual reality (VR) game production and porting. On December 13, 2021, PCF Group purchased 7,143,900 shares from the Estonian entity OÜ Blite Fund, representing 50.01% of Incuvo’s share capital and total voting rights. This transaction, executed on the NewConnect market, marks a strategic move to integrate VR expertise into the broader PCF Group portfolio.

The financial terms of the agreement include an initial purchase price of 19,995,776 PLN. Additionally, the seller is eligible for a performance-based earn-out payment capped at 11,595,725 PLN. This supplemental payment is contingent upon the commercial success of the title Green Hell VR, specifically measured by net profits during a defined reference period and the game’s critical reception as reflected by its Metacritic score.

Beyond the share transfer, the agreement establishes long-term operational stability through non-compete clauses and management commitments. PCF Group has assumed rights and obligations from previous agreements with key Incuvo executives, ensuring that the current leadership remains in place and adheres to non-compete restrictions until at least December 31, 2024. This acquisition serves as a primary component of PCF Group’s growth strategy, aimed at diversifying its technical competencies and establishing a foothold in the emerging VR industry segment.

PCF Group demonstrated robust financial growth and strategic expansion during the first nine months of 2021, characterized by a significant increase in scale and a transition toward a more diversified business model. Consolidated sales revenues rose to 131.8 million PLN, up from 79.3 million PLN in the prior year, while net profit more than doubled to 46.4 million PLN. This performance was underpinned by a strong cash position of 149.8 million PLN, largely bolstered by 131.6 million PLN in net proceeds from Series B and D share issuances. These capital increases drove total equity to 241.6 million PLN, providing the necessary liquidity for international expansion and studio acquisitions.

The Group’s revenue profile remained heavily reliant on the work-for-hire segment, which accounted for over 90% of total income through partnerships with major publishers like Square Enix and Take-Two Interactive. Despite the April 2021 launch of Outriders, the Group did not record royalty income through the third quarter, as sales had not yet recouped the publisher's development and promotion costs. Strategically, the Group is shifting toward a self-publishing model and expanding its development pipeline with projects such as Gemini and Dagger. This evolution is supported by the acquisition of Game On Creative in Canada and the establishment of People Can Fly Chicago, reflecting a growing global footprint across Poland, the United States, and Canada.

Operational costs increased to 92.1 million PLN due to higher headcount and public offering expenses, yet the Group maintained a stable financial outlook. Key corporate developments included a dividend distribution of 5.6 million PLN and a strategic investment agreement with Square Enix involving subscription warrants. By the end of September 2021, the Group had successfully integrated new entities and secured its financial foundation through share capital increases, positioning itself to pursue a goal of annual game premieres starting in 2024.

The executive leadership of PCF Group S.A. disclosed a specific insider trading event involving the acquisition of company shares by a high-ranking official. On October 21, 2021, the company received formal notification regarding a transaction executed on October 19, 2021, by the President of the Management Board. This disclosure was made in accordance with Article 19, Section 3 of the Market Abuse Regulation (MAR), which mandates the public reporting of transactions conducted by persons discharging managerial responsibilities.

The scope of this notification is centered on the Polish capital market, specifically concerning a publicly traded entity listed on the Warsaw Stock Exchange. The transaction represents a direct investment by the top executive into the company’s equity, signaling a reinforcement of managerial alignment with shareholder interests during the fourth quarter of 2021. While the summary text confirms the occurrence of the purchase, the specific volume of shares acquired and the price per share are contained within the formal notification annex rather than the primary announcement text.

This regulatory filing serves as a transparency mechanism intended to inform investors and regulatory bodies of internal movements within the company's shareholding structure. By adhering to MAR protocols, the entity ensures that market participants are aware of significant financial commitments made by its leadership. The reporting methodology follows standard legal requirements for listed companies, utilizing a formal notification process to document and verify the timing and nature of executive equity transactions.

The notification details a specific financial transaction involving the acquisition of shares in PCF Group S.A. by a high-ranking executive. On October 18, 2021, the company management officially disclosed that the President of the Management Board purchased shares of the company on October 13, 2021. This disclosure is mandated by European market regulations, specifically Article 19, Paragraph 3 of the Market Abuse Regulation (MAR), which requires public transparency regarding the trading activities of persons discharging managerial responsibilities.

The scope of this information is limited to a single transaction within the Polish gaming industry, specifically focusing on the leadership of the developer known for the People Can Fly studio. While the specific volume and price of the shares are contained within the attached notification rather than the summary text, the announcement serves as a formal regulatory filing to ensure market integrity and provide investors with insight into the internal confidence levels of the company’s top leadership.

This regulatory filing reflects standard corporate governance practices for publicly traded entities on the Warsaw Stock Exchange. By documenting the acquisition of equity by the President of the Management Board, the communication fulfills legal obligations to prevent insider trading and maintain transparency. The timing of the report, issued five days after the actual transaction, aligns with the required reporting windows established for executive disclosures in the financial sector.

Sebastian Wojciechowski, the President of the Management Board of PCF Group Spółka Akcyjna, executed a series of share purchases on October 13, 2021. This notification, filed in accordance with Article 19(1) of the Market Abuse Regulation (MAR), details the acquisition of equity by a person discharging managerial responsibilities within the Polish game development industry. The transactions involved ordinary shares identified by the ISIN code PLPCFGR00010.

The acquisitions took place on the Warsaw Stock Exchange (Giełda Papierów Wartościowych w Warszawie) during a single trading session spanning approximately two and a half hours. The executive purchased a total aggregated volume of 16,803 shares. Individual transaction prices fluctuated between 40.0 PLN and 41.0 PLN per share, resulting in a volume-weighted average price of approximately 40.17 PLN. The largest single blocks of shares were acquired at the 40.0 PLN price point, with individual trades reaching up to 4,000 units.

This filing serves as a primary disclosure of insider trading activity, providing transparency regarding the financial interests of top-level leadership at PCF Group. The scope of the data is limited to the specific trades conducted by the President on the specified date and does not include broader market trends or subsequent holdings. The information is presented in both Polish and English, with the Polish version designated as the binding text in the event of discrepancies.

The financial results for PCF Group (People Can Fly) through the third quarter of 2021 reflect a period of significant scaling and strategic expansion. The group reported a 66.2% year-over-year increase in revenue, reaching 131.8 million PLN, while net profit rose by 112.6% to 46.4 million PLN. This growth was accompanied by a substantial increase in cash reserves, which grew by 262.6% to 149.8 million PLN, and a 62.7% expansion of the workforce to over 450 employees across global hubs including Warsaw, New York, and Montreal.

The operational focus centered on the continued development of the Outriders franchise and the diversification of the production pipeline. Following the release of the New Horizon update, the game saw a significant resurgence in player engagement, including a peak of over 10,000 concurrent users on Steam and an increase in positive player sentiment to 80%. Looking forward, the group is developing several major projects: Project Gemini with Square Enix and Project Dagger with Take-Two Interactive, both slated for 2024, alongside a self-published original IP and two additional projects in the conceptual phase.

The updated corporate strategy aims to establish the group as a leading independent developer capable of releasing at least one game annually starting in 2024. This roadmap includes expanding into new genres and the "compact AAA" segment. Financial stability is supported by a shift in revenue structure, where development services remain the primary driver, supplemented by royalties. The group’s methodology for these results follows IFRS standards, with adjusted EBITDA figures accounting for IPO costs and stock-based compensation to provide a normalized view of operational performance.

During the first half of 2021, PCF Group demonstrated a period of aggressive international expansion and significant financial strengthening. Consolidated sales revenue rose to 77.3 million PLN, up from 52.6 million PLN in the previous year, while net profit reached 21.7 million PLN. This growth was underpinned by a substantial increase in total assets, which climbed to 272.8 million PLN, largely driven by a successful Series B share issuance that generated over 100 million PLN in net proceeds. These funds significantly bolstered cash reserves and provided the capital necessary for strategic acquisitions, including the purchase of Montreal-based Game On Creative and the establishment of PCF Chicago.

The Group’s business model remains heavily anchored in "work-for-hire" production for major publishers such as Square Enix and Take-Two Interactive, accounting for over 90% of total income. This structure provided financial stability and insulation from the COVID-19 pandemic's market volatility. Notably, despite the high-profile launch of Outriders in April 2021, the Group did not receive royalty payments during this period, as net sales had not yet surpassed the publisher's recoupment threshold for production and promotion costs. Consequently, future royalties remain contingent on the title achieving specific profitability benchmarks.

Strategically, PCF Group is transitioning toward a dual-track development model. While continuing commissioned work on Project Gemini and Project Dagger, the Group has initiated its first self-publishing project and invested heavily in its proprietary PCF Framework software. The acquisition of Game On Creative and the expansion of international development teams reflect a commitment to scaling production capabilities. With a strengthened balance sheet, a stable leadership team under CEO Sebastian Wojciechowski, and a shift toward owning intellectual property, the Group has positioned itself for long-term growth beyond its traditional service-based revenue streams.

PCF Group S.A. experienced significant corporate expansion and financial growth during the first half of 2021, driven by its transition into a global multi-studio entity. The Group expanded its footprint in North America through the acquisition of Game On Creative Inc. and the establishment of PCF Chicago. These strategic moves, supported by a successful Series B share issuance that raised 100.3 million PLN, increased total assets by 185% to 272.8 million PLN. While the Group reported a 47% year-over-year increase in sales revenue to 77.3 million PLN, net profit saw a 30% decline to 11.6 million PLN, primarily due to rising administrative costs, IPO-related expenses, and investments in back-office infrastructure.

The production pipeline remains centered on the AAA segment, highlighted by the April 2021 launch of Outriders and the ongoing development of Project Gemini and Project Dagger. Despite the commercial release of Outriders, the Group did not receive royalties during this period as net revenues had not yet recouped the publisher’s production and promotion costs. This underscores a key operational risk: a high concentration of revenue and intellectual property rights held by external partners, specifically Square Enix and Take-Two. To mitigate these dependencies, the Group has initiated a strategic shift toward self-publishing and diversified its portfolio to include AA-segment titles, aiming for annual premieres starting in 2024.

Financially, the Group maintains a strong liquidity position with a ratio of 3.54 and has optimized its fiscal obligations through the IP Box tax relief, significantly reducing its effective tax rate. Governance remains stable under the leadership of CEO Sebastian Wojciechowski, who retains a 49.76% stake. Looking forward, the Group’s performance will be driven by the execution of its multi-project development strategy, the management of wage pressures in international hubs, and the potential for future royalty streams from its established and upcoming titles.

The updated development strategy for PCF Group S.A. outlines an ambitious expansion of the company’s production capabilities and market reach, building upon the framework established during its 2020 public offering. The primary objective is to transform the group into one of the world’s leading independent development studios. Central to this vision is a commitment to a consistent release cycle, with the group aiming to launch at least one new title annually starting in 2024. These releases will be distributed through a mix of traditional partnerships with global publishers and an increasing focus on self-publishing models for internal intellectual properties.

A significant shift in the operational scope involves diversifying the product portfolio beyond the group’s traditional expertise in Triple-A shooters and action-RPG titles. The strategy introduces the production of AA-segment games, which are designed to maintain Triple-A quality standards while benefiting from shorter development cycles, reduced budgets, and a more focused scope. Furthermore, the group intends to explore entirely new genres, moving away from its historical specialization to capture broader market segments. This expansion is expected to be fueled by both organic growth and aggressive inorganic acquisition strategies, including the integration of new production teams or the takeover of existing video game entities that possess expertise in these new genres and segments.

Despite these new initiatives, the core business model remains intact. The group continues to prioritize the parallel production of multiple Triple-A titles in collaboration with major international publishers. By balancing high-budget external partnerships with more agile AA projects and self-published titles, the group seeks to mitigate risk while maximizing its creative independence and long-term revenue potential. This strategic evolution reflects a transition toward a more diversified, high-frequency production house capable of competing on a global scale across various gaming categories.

PCF Group S.A. presents a comprehensive financial and operational overview for the first half of 2021, highlighting a period of significant scaling and strategic evolution. The group reported a 47% year-over-year increase in revenue, reaching 77.3 million PLN, while EBITDA rose by 36.5% to 28.8 million PLN. Net profit for the period grew by 25.4% to 21.7 million PLN. This financial growth was accompanied by a substantial expansion of the workforce, which increased by nearly 42% to over 420 employees across global hubs including Warsaw, New York, and Montreal.

The strategic focus centers on transitioning toward a dual-model production cycle involving both major publisher partnerships and self-publishing. Key projects include continued support for Outriders, despite publisher reports indicating no royalties were earned in the first quarter post-launch. Future growth is anchored by Project Gemini with Square Enix and Project Dagger with Take-Two Interactive, both slated for 2024 releases. Additionally, the group is developing a new proprietary IP funded internally and exploring two conceptual projects.

Geographically, the group has strengthened its North American presence, with 120 employees now based in that region. This expansion is supported by a robust cash position of 150.3 million PLN, representing a 263.9% increase from the end of 2020. The long-term objective is to achieve a position as a leading independent global developer, targeting annual game releases starting in 2024 through the development of the PCF Framework and potential future acquisitions.