Nearly PLN 68,16m in revenue, PLN 32,12m in net profit and PLN 116m in financial assets – these are the results delivered by 11 bit studios S.A. in Q1–Q3 2020, exceeding the budgeted targets for the year.

 In the summer quarter, normally the weakest season for the gaming industry, 11 bit studios S.A. posted excellent performance. In that period, the Company posted almost PLN 18m in revenue, PLN 8,73m in operating profit and PLN 7,11m in net profit. In the nine months to September 30th 2020, the Company’s revenue reached nearly PLN 68,16m, EBIT stood at PLN 35,11m and net profit at PLN 32,12m, a year-on-year increase of respectively 37.9%, 198.8% and 277.5%. “These are the best results for the first three quarters of a year the Company has recorded during the almost eleven years since its inception, even better than two years ago, when Frostpunk and Moonlighter were released,” said Grzegorz Miechowski, CEO of 11 bit studios S.A. He notes that one of the factors which led to the marked improvement in the Company’s profitability was the change in the presentation of the IP Box tax relief. The positive effect of that event on 11 bit studios S.A.’s net result after the first three quarters of 2020 is PLN 4.45m. Mr Miechowski also emphasises that the Company under his management has increased its cash position for another consecutive quarter. As at the end of September, the Company’s financial assets exceeded PLN 116m and were 16% higher than at the beginning of the year, while liabilities, mostly comprising a long-term investment facility taken out in December 2018 to purchase an office building in Warsaw (the Company’s current registered office), fell by 21.2%, to PLN 28,31m.

The record financial performance delivered by 11 bit studios S.A. in the nine months to September 30th 2020 was driven by successful monetisation of its entire portfolio of games, primarily Frostpunk and its DLCs, as well as the titles marketed by 11 bit publishing. “By the end of September alone, more than 20% of gamers who have purchased Frostpunk decided to buy a paid DLC to the game, which is far above the market average,” the CEO noted. The games released by the publishing division also vitally contributed to the results posted by 11 bit studios S.A. in the first three quarters of 2020. In that period, revenue from the sale of Moonlighter, Children of Morta and other games accounted for approximately 28% of the Company’s total revenue. “We are positive that both Moonlighter and Children of Morta will long continue to be a source of revenue. The same holds true for monetisation of our own games, especially Frostpunk, which, supported by appropriate promotional and marketing efforts and its launch for mobile devices, will still be a major source of our revenue for a long time,” added Mr Miechowski.

He also declared that in the coming quarters 11 bit studios S.A. intends to focus on expanding the portfolio of both proprietary and published third-party titles. He said that the work is progressing at a satisfactory rate although the COVID-19 pandemic complicates finding new hires, especially those from abroad. “Still, fans looking forward to our new games, that is Project 8 as well as Dolly and Eleanor, need to practice patience waiting for these releases,” admitted Mr Miechowski. He announced that in 2021 the Company intends to start a marketing communication campaign for selected new games and further expand its workforce. “Despite the large scale of our ongoing investment projects, our highest ever cash resources vastly facilitate planning long-term strategic movements, well beyond the coming quarters. We hope that we will be able to provide you with more details in the near future and that our ideas will be well received by the Shareholders and Investors,” concluded Mr Miechowski.