For 2023, 11 bit studios, specialising in the development and publishing of video games, records PLN 52.27 million in revenue, with EBITDA reaching PLN 11.76 million and net profit in excess of PLN 0.52 million.
“2023 marked a significant milestone in both our sales and game development,” comments Przemysław Marszał, President of the Management Board and CEO of 11 bit studios, noting that the Company began releasing titles last year that had been in development for several years. According to Marszał, the accumulation of long-delayed AAA game releases in 2023 intensified competition for gamers’ spending and attention. “This affected the titles launched by our publishing division, including ‘The Invincible,’ which debuted on 6 November 2023, and ‘The Thaumaturge,’ released earlier this year,” he admits. Marszał points out that the new releases also faced competition from games that have been on the market for an extended period. “‘Frostpunk’ and ‘This War of Mine’, which launched six and over nine years ago respectively, demonstrate the value of strong IP, which enables monetisation for many years post-launch,” he states. He also mentions that last year the Company had to navigate challenges related to operating costs. “Accelerated inflation led to increased game development costs, not only due to higher wages and salaries,” he observes.
Consequently, for 2023, 11 bit studios reported revenue of PLN 52.27 million and nearly PLN 7.6 million in operating profit. The net profit was a nominal PLN 0.52 million. A significant impact on these results was the non-cash revaluation of the Company’s 5.99% ownership interest in Starward Industries. “On the other hand, we made an adjustment, also non-cash, to the costs of the Incentive Scheme for 2021– 2025,” Marszał notes. The robust financial health of 11 bit studios is evidenced by its financial assets (cash and bank deposits), which exceeded PLN 54.3 million at the end of December 2023, even though total expenditure on game development topped PLN 58.2 million during the year. “This investment level was unprecedented in our history yet consistent with our cash flow projections for the period,” Marszał announces.
He highlights that 2024 is set to be a pivotal year for 11 bit studios. “Besides ‘The Thaumaturge,’ which launched in February, we are slated to release four additional games this year, including two proprietary titles,” he reminds. The release schedule begins with ‘INDIKA’ from the Company’s publishing business on 2 May, followed by ‘Frostpunk 2’ on 25 July and ‘The Alters’ a few weeks later. The year’s launches will conclude with ‘Creatures of Ava,’ another title from the publishing division.
“Our expectations are particularly high for the launches of our proprietary games. We are preparing meticulously, supported by ongoing promotional campaigns. The outcomes, gauged by metrics such as trailer viewership and extensive wishlists on Steam, are highly satisfying at this stage of fan engagement,” Marszał comments. The ‘Frostpunk 2’ wishlist has already surpassed two million entries and continues to grow. “We are equally pleased with the pre-sale figures for ‘Frostpunk 2’ following the initial weeks since the presales commenced, and with the number of players who have opted for the Deluxe version, enabling them to test an early segment of ‘Frostpunk 2’ from Monday, 15 April, for an entire week,” concludes the CEO of 11 bit studios.
