We invite you to review selected information from gaming companies from the last week. The WIG-GAMES5 index, which includes CD PROJEKT, 11BIT, HUUUGE, TEN SQUARE GAMES and CI Games, ended the week with a drop of 3.44%. On the other hand, the WIG-Gry index, which includes all gamedev companies from the main trading floor, fell by 5.41%.
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CD Projekt publishes the results and presents plans for 2023
In the third quarter of 2022, the largest Polish gaming company recorded PLN 98.7 million of consolidated net profit compared to PLN 16.34 million profit a year earlier. Consolidated sales revenues reached PLN 245.51 million in Q3 2022, compared to PLN 144.46 million a year earlier. In financial terms, it was the best third quarter in the history of CD Projekt, the company emphasized in the report. – PLN 246 million of consolidated revenues, which we achieved in this period, is mainly the result of solid sales of ‘Cyberpunk’. The group’s net profit amounted to PLN 99 million, which gives the group’s profitability at the level of 40%. On the other hand, the profitability of the CD Projekt RED segment itself reached as much as 47% – said Piotr Nielubowicz, Vice-President for Finance, quoted in the release.
CD Projekt intends to start conceptual work on the sequel to “Cyberpunk 2077” (the Orion project) in 2023, but predicts that the pre-production of this title will start after next year, CEO Adam Kiciński announced. – Pre-production probably won’t start next year because it’s the first part of development, but we will start work on the game in the concept phase next year. Of course, in a smaller team than the one currently working on ‘Phantom Liberty’, because some developers will join ‘Polaris’ and help in its development – said Kiciński during the teleconference. In October, presenting an update of CD Projekt’s strategy, the president said that work on Orion has not yet started – they are to start after the release of a large expansion to “CP 2077” – “Phantom Liberty”. – I do not want to refer to any numbers, but we want to keep growing. This year, we have added about 100 net people so far and we will continue to grow. We believe we have a very good start with the current team to continue the development of ‘Polaris’ and then ‘leap’ to ‘Orion’ next year – added the president.
In September, CD Projekt announced that it plans to release an expansion for Cyberpunk 2077 titled “Phantom Liberty” in 2023.
The release of “Lords of the Fallen” from CI Games is approaching
The company will announce the exact date of next year’s premiere of “Lords of the Fallen” about 3 months before the final release, CEO Marek Tymiński announced. – We will give the exact release date in plus or minus 3 months to the premiere. We want to be sure that the date will be kept and we want to know the environment of other games in order to choose the best time for the launch – said Tymiński during the presentation as part of the GPW Innovation Day.
He noted that the company does not plan to issue shares. On the other hand, as part of the review of strategic options, she is “quite active” and talks to “a number of large strategic investors.” Regarding the “Sniper” brand, he commented that “it’s not necessarily in the freezer.” – There are a lot of synergies with the projects on Unreal 5, with the ‘Scorpio’ project. We are talking with partners, but there is no decision yet on what partners will do and what will be done internally. We are not giving the exact dates for the sniper game yet, but it is an important brand for us – said Tymiński. According to him, the “Sniper” brand will remain in the single-player model, the “Scorpio” project is profiled to a large audience and multiplayer gameplay. CI Games will present the gameplay of “Lords of the Fallen” “very soon”, CEO Marek Tymiński announced. In September, Tymiński reported that CI Games plans that the marketing campaign of the reboot of Lords of the Fallen, announced for 2023, will be the largest in the company’s history, and the gameplay will be shown later this year. – The first details and gameplay of ‘Lords of the Fallen’ will be coming soon – sooner than later, […] very soon. We will deliver what we promised. The game will have a co-op mode – said Tymiński during the presentation as part of the GPW Innovation Day.
PlayWay sums up the quarter
The studio recorded a consolidated net profit of PLN 42.09 million in Q3 2022, compared to PLN 42.8 million a year earlier. Consolidated sales revenues reached PLN 76.75 million in Q3 2022, compared to PLN 66.96 million a year earlier. In Q1-Q3 2022, the company had PLN 111.32 million of consolidated net profit attributable to shareholders of the parent company compared to PLN 93.96 million profit a year earlier, with sales revenue of PLN 200.34 million compared to PLN 160 million PLN .09 million a year earlier.
This Square Games announces a new strategy
The game producer wants to adapt the 2.5-year strategy to the current situation and will publish it with financial results at the turn of March and April 2023, informed CFO Magdalena Jurewicz. She emphasized that the company wants to diversify its operations through new titles and potential acquisitions. – The strategy is valid, but it is slightly modified. It’s about slightly refreshing the 2.5-year strategy and adapting it to the current situation. It will be published at the turn of March and April with the results, said Jurewicz during her presentation at the Warsaw Stock Exchange Innovation Day.
– We are adding more legs both organically, as well as acquisitions and new titles – pointed out the CFO. At the same time, work is underway to rebuild revenues – after a successful October, Sensor Tower shows stabilization in November. – Sensor Tower is recognized monitoring and shows what it shows. We are looking at a longer revenue trend. In our opinion, everything is going according to plan, we are buying profitable users. We have predictive models and everything is going its way – said Jurewicz. In terms of the new game schedule, according to her, “Undead Clash” is in the presoft launch phase, and “Fishing Masters” is about to enter the soft launch phase. – The macro situation is uncertain. The market assumption is that gaming is more resilient, but it is not known how long the economy will be in worse moods. We have a nice portfolio, we believe in ‘Wings of Heroes’. Optimization of operational work is underway to have an agile organization that adapts to changes, and the market will verify consumer sentiment. We look to future periods with moderate hope. We have a stable level of cash, currently PLN 113 million in the account, which allows us to continue investing in games and gives M&A potential – added the CFO. As she indicated, the new title “of Heroes” will affect EBITDA, but until 2025 the cash generated by the game will be paid out to the owners of Rortos as earn out, which is a standard model on the acquisition market.
BoomBit publishes quarterly results
BoomBit recorded PLN 4.21 million of consolidated net profit attributable to the shareholders of the parent company in Q3 2022, compared to PLN 2.33 million profit a year earlier. Consolidated sales revenues reached PLN 73.62 million in Q3 2022, compared to PLN 57.61 million a year earlier. In Q1-Q3 2022, the company had PLN 8.72 million of consolidated net profit attributable to shareholders of the parent company compared to PLN 8.55 million profit a year earlier, with sales revenue of PLN 221.69 million compared to PLN 171 million PLN 19 million a year earlier.
– The group’s revenues in the period covered by this report amounted to almost PLN 222 million and were 30% higher than in the same period last year. Mid-Core games were the most important driver of this growth, with revenues up by approximately 71% year-on-year. ‘Hunt Royale’ and ‘Darts Club’ were the two highest-grossing titles in the previous months of 2022 and generated over PLN 74 million. Hyper-Casual games, on the other hand, earned over PLN 125 million and accounted for 55% of all revenues of the BoomBit Group, CEO Marcin Olejarz wrote in a letter to shareholders. – The financial results I would like to mention are PLN 20.5 million EBITDA compared to PLN 25.7 million in the corresponding period of the previous year and adjusted net profit, which was PLN 9.4 million compared to PLN 13.1 million a year ago earlier. It is worth noting here that in 2022 the group started working on projects related to games in the Play-and-Earn model, based on blockchain technology, which are a new, important area of the group’s activity. Due to intensive activities and the need to incur expenses for the preparation of the first titles, the results of this segment burdened both EBITDA and net profit with the amount of approx. PLN 4.4 million, we read further. Sources: ISBnews reports, ISBtech.pl website, information from companies and organizations
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