During the Q1-Q3 2022 Company delivered PLN 59.58 million in revenue (up by 21.11% year on year), and earned an operating profit of nearly PLN 16 million (down by 13.15%) and a net profit of PLN 19.77 million (up by 14.76% year on year).
In the three months ended September 30th 2022, revenue reached PLN 13.81 million (2.94% more than in the reference period), operating profit was PLN 2.58 million (down by 34.25%), and net profit came in at PLN 4.88 million (an improvement of almost 19.96%). “Our assumptions for this year were far more conservative,” admits Przemysław Marszał, the CEO of 11 bit studios. He also points out that a material item contributing to the Company’s net profit for the first nine months of 2022 was finance income on financial assets (remeasurement of the assets and interest on bank deposits). It amounted to PLN 7.86 million, compared with PLN 1.59 million in the reference period. From January to September, 11 bit studios generated an operating cash flow of more than PLN 36.79 million, and the value of its financial assets as at the end of September 2022 (cash and cash equivalents, financial instruments, trade and tax receivables) was PLN 111.27m. The Company’s total liabilities as at the reporting date stood at PLN 24.97 million.
11 bit studios’ robust financial performance in the nine months ended September 30th 2022 follows from the successful monetisation of its entire portfolio of proprietary games, notably Frostpunk and This War of Mine (which celebrated its eighth anniversary of the first release a few days ago), as well as the publishing portfolio. Revenue from Moonlighter (made available on the Netflix platform in the second quarter of this year), Children of Morta, South of the Circle (released in August), and other third-party developed games accounted for approximately 39% of the Company’s total revenue in the period. A year earlier, those products contributed 25% of the total. “We are pleased with how our publishing house is growing,” comments the CEO. He notes that this year 11 bit studios has decided to acquire a 40% equity interest in Fool’s Theory, the producer of a game under the working title Vitriol, and 5.1% of shares in Starward Industries, the studio developing The Invincible, scheduled to be placed on the market in 2023. 11 bit studios will be the publisher of both titles. The Company’s publishing portfolio further includes Ava and Botin (working titles).
11 bit studios focuses on the production of three own games namely Frostpunk 2,The Alters (its the marketing campaign was launched in the third quarter), and Project 8 (working title). In the case of this last title, the production is back on track despite some previous headwinds. “We are consistently increasing our headcount. We are expanding the game development teams. We are strengthening the business development, publishing and marketing departments in order to better meet the challenges that are ahead of us, not only those related to new game releases” says the 11 bit studios representative. He notes that the Company is steadily stepping up spending on the development of games in its proprietary and publishing portfolios. In the first three quarters of 2022 alone, it amounted to PLN 34.26 million, that is 65.67% more than in the same period of 2021. “ It should be taken into account that in the following periods those amounts should be expected to grow, which is in line with our medium-term plan and the Company’s long-term strategy” Przemysław Marszał concludes.