The first three quarters of 2024 saw 11 bit studios achieve its strongest ever financial results, surpassing even the record-breaking full-year performance of 2020.
In the nine months ended 30 September 2024, the Company posted revenue exceeding PLN 106.6 million, a year-on-year increase of 211.1%. Revenue in the third quarter of 2024 alone reached nearly PLN 76 million, marking a sevenfold improvement on the same period in 2023. With effective operating expense management in place, the Company achieved an operating profit of more than PLN 53 million and a net profit of PLN 47.53 million, representing an astonishing 3,420.1% increase compared to the corresponding period of 2023.
The standout driver of 11 bit studios’ performance in the period was the launch of Frostpunk 2 on 20 September 2024 for PC. “By the end of September, we sold 441,000 copies of the game, net of returns, with an impressive 53.7% of customers opting for the Deluxe Edition, revenue from which will partly be recognised over time, in line with the successive releases of paid DLCs included in this version,” explained Przemysław Marszał, President of the Management Board. As at 14 November, sales had grown to 511,000 units, with the Deluxe Edition maintaining a 48.7% share.
Approximately 25% of Frostpunk 2 buyers by 30 September were from China (24.2% as at 14 November), followed by the United States with 18.2% (18.5%) and Germany with 7.1% (7.2%). Poland accounted for 2.9% of sales on both dates. Robust pre-order sales and steady demand in the launch window, despite mixed reviews from gamers, contributed significantly to revenue. Combined with payments from Microsoft for making the game available on GamePass, this title generated PLN 52.33 million, or 49.1% of the Company’s total revenue for the first nine months of 2024.
“This was complemented by the strong performance of the first Frostpunk game, including paid DLCs and associated merchandise, such as the board game and soundtrack, as well as sales of games from our publishing division,” Marszał emphasised. He highlighted the expansion of the Company’s publishing portfolio in recent quarters, which now includes titles such as The Invincible, The Thaumaturge, INDIKA, and Creatures of Ava. “In total, our publishing segment has contributed 26% of the Company’s revenue this year, which equates to PLN 27.62 million,” he noted.
Looking ahead, Marszał announced plans to focus on enhancing the gameplay experience of Frostpunk 2 to better suit the expectations of both the existing fanbase and new players. “We aim to address player feedback through updates, significant expansions, and future paid DLCs, supported by marketing efforts. This approach is designed to ensure a long lifecycle and sustained monetisation for the game and thus replicate the success of the original Frostpunk title,” he stated.
Marszał also declared that the Company would leverage its recent insights from the premiere of Frostpunk 2 for the upcoming release of The Alters, scheduled for the first quarter of 2025. “We are investing significant effort into this title. Its launch will be pivotal for our financial performance in future periods and, as we firmly believe, will validate our current growth strategy,” he added.
Reflecting on the ever-evolving nature of the gaming market, Marszał commented, “The launch of Frostpunk 2 and recent releases from our publishing division, some of which underperformed relative to expectations, have reinforced the importance of carefully evaluating the development path we wish 11 bit studios to take in the coming years. This also applies to our publishing strategy.”
He concluded by announcing that the Company will unveil its plans at an Investor Conference to be held following the release of The Alters.
