CD Projekt Group FY2024 H1 Earnings Release
Download PDFAug, 2024 CD PROJEKT GROUP
H1 2024 Earnings
2 8 A U G U S T 2 0 2 4
Michał Nowakowski
|
J O I N T C H I E F E X E C U T I V E O F F I C E R , M E M B E R O F T H E B O A R D
Piotr Nielubowicz
|
C H I E F F I N A N C I A L O F F I C E R , M E M B E R O F T H E B O A R D
2
H1 2024: Back catalogue sales triggers
…supported by franchise flywheel activities
3
Development teams engaged in ongoing projects
*General Development Services (e.g. Localization, Quality Assurance), Data, Insights & Experiences, Artificial Intelligence
Polaris
Orion
Sirius
Hadar
Shared Services*
Other projects
No. of
developers
17
February 29, 2024
410
60
42
20
99
8
July 31, 2024
639
407
56
39
20
96
12
April 30, 2024
630
O F T H E C D P R O J E K T G R O U P
Financial Results
4
CD PROJEKT GROUP — Profit and loss account
All figures in PLN thousands
CD PROJEKT GROUP
RED
GOG
eliminations
H1 2024 vs.
H1 2024 vs.
H1 2023
H1 2024
H1 2024
H1 2024
H1 2024
H1 2023
[PLN]
H1 2023
[%]
Sales revenue
325 214
424 812
344 946
87 669
-7 803
99 598
31%
Sales of products and services
238 883
344 530
341 154
306
3 070
105 647
44%
– CP 2077 + expansion *
142 559
257 667
254 859
115 108
81%
– The Witcher 1, 2, 3 + expansions *
77 837
61 284
60 964
-16 553
-21%
Sales of goods for resale and materials
86 331
80 282
3 792
87 363
-10 873
-6 049
-7%
Cost of sales
107 213
124 847
69 028
63 535
-7 716
17 634
16%
Cost of products and services sold
42 701
65 684
65 689
-5
22 983
54%
Cost of goods for resale and materials sold
64 512
59 163
3 339
63 535
-7 711
-5 349
-8%
Gross profit on sales
218 001
299 965
275 918
24 134
-87
81 964
38%
Operating costs
120 111
159 742
136 754
23 162
-174
39 631
33%
Selling expenses
85 106
60 875
41 077
19 858
-60
-24 231
-28%
– Cost of product maintenance
21 516
10 887
10 887
-10 629
-49%
– CP IP publishing costs
29 555
14 729
14 729
-14 826
-50%
Administrative expenses
60 063
106 034
101 214
4 865
-45
45 971
77%
– Research works costs
3 273
45 918
45 918
42 645
1 303%
Other operating income less expenses
25 058
7 167
5 537
1 561
69
-17 891
-71%
– Project Sirius – impairment/adjustment (balance)
18 786
-18 786
-100%
EBIT
97 890
140 223
139 164
972
87
42 333
43%
Financial income less costs
21 640
34 634
34 264
310
60
12 994
60%
Income tax
29 311
4 851
4 597
251
3
-24 460
-83%
– Current income tax
23 256
17 899
17 320
579
-5 357
-23%
– Change of deferred tax calculation
6 055
-13 048
-12 723
-328
3
-19 103
-315%
Net profit
90 219
170 006
168 831
1 031
144
79 787
88%
Net profitability
27.7%
40.0%
48.9%
1.2%
5
*estimation
CD PROJEKT GROUP – assets
Assets
31.12.2023
30.06.2024
change
change %
Non-current assets
1 450 685
1 525 159
74 474
5%
Expenditure on development projects
527 182
586 630
59 448
11%
– New development during H1 2024
112 365
– Depreciation during H1 2024
-52 917
Other financial assets *
455 907
426 048
-29 859
-7%
Property, plant and equipment, investment properties
217 283
251 769
34 486
16%
Deferred tax assets
43 433
56 481
13 048
30%
Other non-current assets
206 880
204 231
-2 649
-1%
Current assets
1 162 815
1 134 848
-27 967
-2%
Trade receivables
193 520
83 928
-109 592
-57%
Other financial assets *
362 719
457 094
94 375
26%
Cash and bank deposits *
516 259
489 825
-26 434
-5%
Other current assets
90 317
104 001
13 684
15%
Total assets
2 613 500
2 660 007
46 507
2%
*Cash, bank deposits and bonds – total
1 309 459
1 365 322
55 863
4%
6
All figures in PLN thousands
Equity and liabilities
31.12.2023
30.06.2024
change
change %
Equity
2 403 223
2 484 354
81 131
3%
Liabilities
210 277
175 653
-34 624
-16%
Liabilities
103 914
95 186
-8 728
-8%
Deferred income
15 485
15 812
327
2%
Provisions
90 878
64 655
-26 223
-29%
Total liabilities and equity
2 613 500
2 660 007
46 507
2%
7
All figures in PLN thousands
CD PROJEKT GROUP – equity and liabilities
Cost of product maintenance – released products (P&L – Selling costs)
Research works costs – new projects (P&L – G&A costs)
Development expenditures – new products (Assets – capitalised)
CD PROJEKT RED
Research, development & product maintenance costs
8
All figures in PLN thousands
0
25 000
50 000
75 000
100 000
2023 Q1
2023 Q2
2023 Q3
2023 Q4
2024 Q1
2024 Q2
Cash, deposits
and bonds
2024.01.01
Net profit
for the period
Research
works costs*
Depreciation
and amortization
Change in
receivables,
liabilities,
provisions
Acquisition of
intangible and
tangible assets
Other
(cumulated)
Ongoing
business
cash flow
Research
works costs*
Expenditure
on development
projects
Dividend
paid out
Cash, deposits
and bonds
2024.06.30
CD PROJEKT GROUP
Changes in cash, deposits & bonds
9
All figures in PLN thousands
1 309 459
59 817
45 918
170 006
61 061
-36 953
9 027
308 831
-45 918
-107 139
-99 911
1 365 322
Total outcome from ongoing business during H1 2024:
308 831
Total increase after R&D costs/expenses and dividend pay out during H1 2024:
55 863
*P&L recognised costs
Thank you
ir@cdprojekt.com
karolina.gnas@cdprojekt.com
10
Legal Disclaimer
This presentation was created by CD PROJEKT S.A. (“CD PROJEKT”).
Data contained in this presentation is valid as of the day of its preparation. Consequently, this presentation will not be subject to changes, updates or
modifications to account for events which might occur after this day.
The presentation outlines the activities of CD PROJEKT and the CD PROJEKT Group. It is purely informative in scope and should not be regarded as
offering investment advice. Information contained in this presentation must not be construed as assurances, projections or forecasts regarding future
accomplishments or earnings of CD PROJEKT or of the CD PROJEKT Group.
Although due diligence was applied in preparing this presentation, it may nevertheless contain ambiguities. Under no circumstances should this
presentation be construed as a purchase recommendation, an invitation to subscribe to, or an offer to recommend purchase or subscription to any
securities issued by CD PROJEKT.
The recipients of this presentation bear all responsibility for their own analyses and assessments regarding the status of the market as well as the
condition and potential future earnings of CD PROJEKT which may be based on information contained herein. CD PROJEKT wishes to advise all parties
accessing this presentation that the sole authoritative source of information concerning the Company’s earnings, projections, events and indicators is
represented by the current and periodic reports published by CD PROJEKT in the course of discharging its reporting obligations under Polish law.
This presentation is not to be circulated in territories and states where public circulation and sharing of information contained herein may be subject to
legal restrictions. Parties accessing this presentation are advised to familiarize themselves with any such restrictions beforehand.
CD PROJEKT S.A. or any of its affiliates in the capital group (“CD PROJEKT”) with regards to any kind of, either sponsored or unsponsored ADR
(“alternative depositary receipts”) or any other financial instruments of this kind (“Financial Instruments”) does not (i) make any warranties, expressed or
implied, as to the accuracy, adequacy or completeness or any of the information connected with the Financial Instruments, (ii) support or encourage the
creation of any kind of the Financial Instruments. CD PROJEKT does not represent any depository institution, bank or anyone nor should any such
entity/person.
CD PROJEKT shall have no responsibility or liability for the Financial Instruments. In case of any question, the holder of any Financial Instruments (as
defined above) shall receive all the essential information at the institution issuing such Financial Instruments or any institution supporting such issuance
of the Financial Instruments.
11