11 bit studios S.A. posts growth in cash for investments

Revenue in excess of PLN 49,4m, EBIT of just under PLN 13,3m and net profit of PLN 10,0m are the financial results delivered by 11 bit studios S.A. for the first nine months of 2019. The value of the Company’s financial assets at the end of September 2019 was in excess of PLN 90m.

The solid Q1-Q3 2019 results are an effect of strong monetisation of both the proprietary games Frostpunk and This War of Mine and externally developed titles, mainly Moonlighter. Children of Morta, released for PCs on September 3rd 2019, also made a small contribution to the period’s performance. “We are confident that the latest title will be contributing positively to our results for many quarters to come,” says Grzegorz Miechowski, President of the Company’s Management Board. He is satisfied with 11 bit studios S.A.’s business achievements in the first nine months of the year. He notes the Company’s net profit would have come in even higher but for the non-cash provisions recognised in connection with its Incentive Scheme for 2017–2019, amounting to PLN 6.2m in Q1-Q3 2019. “11 bit studios S.A.’s financial strength is best demonstrated by its cash flows from operating activities, which reached an impressive PLN 36,3m in the first nine months of the year, having gone up year on year despite no new game releases,” Mr Miechowski adds.

He has a positive outlook for the Company in the fourth quarter of 2019. “The recent release of Frostpunk and Children of Morta for Xbox One and PS4 consoles, the upcoming launch of Children of Morta for Nintendo Switch on November 20th 2019 and the release of a series of DLCs for Frostpunk under a Season Pass, combined with a host of end-of-year sale promotions, should make the fourth quarter the best quarter of the year for 11 bit studios S.A., as we have predicted earlier,” says Mr Miechowski.

He stresses that the Company’s business plans look forward beyond this quarter or year. “We are busy developing Project 8, and we have started conceptual work on a new game called Project 9, with a similar process due to commence for Project 10 this year. This will take us further towards our medium-term goal of releasing one proprietary game a year,” he says. According to Mr Miechowski, there is a lot going on in the publishing division too. “The team are holding some promising talks and negotiations that may lead to the signing of publishing contracts of a far greater value and commercial potential than the ones we have secured before,” comments Mr Miechowski. He declares the Company will share some information on its new publishing projects by the end of 2019.