Strong operating cash flows, despite rising expenditure on new titles, have once again increased 11 bit studios S.A.’s cash resources.
Nearly PLN 35.78m in revenue, PLN 19.76m in EBITDA, PLN 14.49m in operating profit and PLN 13.31m in net profit – these are 11 bit studios’s financial highlights for the first six months of 2021. ‘Our budget for the period was far more conservative,’ said Przemysław Marszał, President of the 11 bit studios Management Board. Mr Marszał also notes that the profit figures would have been higher but for the non-cash provision (over PLN 1.94m in H1 2021) recognised in connection with the Company’s 2021−2025 Incentive Scheme.
The satisfactory financial results posted by 11 bit studios S.A. in the first half of 2021, albeit slightly weaker due to the high base of the previous year, were driven by strong sales of games from the Company’s entire, steadily growing portfolio of proprietary titles and its publishing line. ‘We are particularly pleased with the sales of Frostpunk and paid Season Pass-based DLCs for this production,’ said Przemysław Marszał. The Company’s CEO said that by the end of June 2021, i.e. in a little more than three years from the game’s release, revenue from the sales of Frostpunk (entire IP) had come close to PLN 140m. As usual, games released by the publishing division, mainly Moonlighter and Children of Morta, vitally contributed to the results posted by 11 bit studios S.A. Revenue from the two games in the first six months of 2021 accounted for 27% of the Company’s total revenue.
11 bit studios S.A.’s sound financial condition is evidenced by the cash resources held, comprising cash and cash equivalents, low-risk financial instruments and trade receivables. ‘At the end of June 2021, they totalled PLN 114.56m, despite growing capital expenditure. This meant a marked increase relative to the end of 2020, to a level previously unseen in the Company’s history,’ added Mr Marszał. This is important for the context of the strategy we showed you at the last Investor Conference.
He believes that, resting on such solid financial footing, the Company can take up challenges that were beyond its capability only a few years ago. ‘We are gearing ourselves up for those challenges very diligently by hiring more people and introducing necessary changes in the Company,’ said the Company’s CEO. He notes that 11 bit studios S.A. currently has three in-house development teams working in full flow on games with a total production budget of PLN 110m. ‘The fast-growing publishing division intends to spend another PLN 50m on new projects by the end of 2023, in addition to the PLN 30m earmarked for projects already in its portfolio,’ added Mr Marszał. He points out that the Company is also at an advanced stage of work on establishing its corporate group. ‘We hope that soon we will be able to lift the veil and publish more information on the subject,’ said Przemysław Marszał.
He also hopes that the news will be welcomed as warmly as the trailer for Frostpunk 2, which the Company released on August 12th. ‘The count of views of the trailer, favourable articles in all of the most infuential industry media, as well as the pace of wishlist building are, in our opinion, impressive, which confirms that fans are looking forward to more games set in the universe we have created, and that the development directions we have chosen are the right ones,’ concluded the President of the Management Board.
