11 bit studios S.A. strengthens its cash position

More than PLN 13.7m in revenue, PLN 8.7m in operating profit and PLN 6.4m in net profit – these are 11 bit studios S.A.’s results after H1 2019. At the end of June 2019, the Company’s financial assets amounted to nearly PLN 84m.

‘We are more than pleased with 11 bit studios S.A.’s financial performance in the first half of 2019, especially that the most awaited releases of the year are still ahead of us,’ says Grzegorz Miechowski, President of the Company’s Management Board. He stresses that the Company’s solid financial performance was an effect of successful monetisation of the entire portfolio of its games, in particular Frostpunk  and Moonlighter, although more than a year has passed since their release. Mr Miechowski emphasises that an increase in cash resources held by the Company allows it to operate smoothly and comfortably finance growth-oriented projects, including development and release of new games. ‘In  the last half of the year alone our financial assets grew by another PLN 13m, to almost PLN 84m,’ he adds. Mr Miechowski also notes that the Company’s  net profit for H1 2019 would have been even higher had it not been for non-cash provisions associated with its 2017−2019 Incentive Scheme. In the six months to June 30th 2019, the provisions totalled PLN 4.1m.

The Company’s CEO expects the second half of the year to be a very busy period for 11 bit studios S.A. given the upcoming schedule of events and releases. ‘Some of them, such as the paid add-ons for Moonlighter and This War of Mine, have already been released,’ he notes. Today, i.e. on August 27th 2019, the Company started selling Season Passes for Frostpunk. ‘The USD/EUR 24.99 package will include three add-ons for the game. The first one, Frostpunk – The Rifts, has already been made available to the gaming community,’ says Mr Miechowski. Two more DLCs will be released by the end of this year and next year, respectively. The premiere of Children of Morta for PCs, scheduled for September 3rd 2019, will be another major event. Starting from mid-October 2019, the game, developed by the Dead Mage studio, will also be available for Xbox One, PS4 and Nintendo Switch. ‘The growing interest in Children of Morta both from gamers and trade media suggests the game’s sales potential should at least equal that of Moonlighter, which has been a huge market success,’ says Grzegorz Miechowski. The Company has equally high hopes for the release of the Xbox One and PS4 version of Frostpunk, due on October 11th 2019. Given the long list of titles which have already been released or are due for release over the coming weeks, coupled with the strong ongoing sales of Frostpunk and Moonlighter,   Mr Miechowski believes that 11 bit studios S.A.’s financial performance delivered in the second half of 2019 will be far more robust compared with the first half of the year.