28-11-2022 17:38, akt.28-11-2022 20:02
publication
28-11-2022 17:38
update
28-11-2022 20:02
CD Projekt showed the results of the third quarter. It was the best third quarter in the company’s history, said Piotr Nielubowicz, Vice President for Finance. The biggest revenue driver was the success of the ‘Cyberpunk: Edgerunners’ series on Netflix and the return of interest in the ‘Cyberpunk 2077’ game.
CD Projekt’s net profit in the third quarter of 2022 amounted to PLN 98.7 million, the company said in a report. Analysts expect a result of PLN 95.5 million. Compared to the previous year, the result increased by 504%. According to the vice president, it was the best third quarter in the company’s history. So far, the maximum during this period (PLN 40.4 million) was earned in 2015, after the premiere of “The Witcher 3” in May of the same year.
In the third quarter of 2022, the Group generated revenues of more than PLN 245.5 million, while the average analyst forecast was PLN 250.4 million (within the expected range of PLN 243-259 million ). Revenues increased by 70%. compared to the same period in 2021. Operating profit increased 521.2% year-over-year. to PLN 97.1 million. The consensus assumed a profit of PLN 102.7 million, PAP wrote.
The increase in the value of group sales revenue in the third quarter of 2022 is mainly due to the good reception of the Cyberpunk EDGERUNNERS update 1.6, released in September, which precedes the premiere of the anime series “CYBERPUNK EDGERUNNERS” on Netflix, it reads in the report.
The update included additional game content related to the series (side quests, locations, items, arcade game) and a number of technical updates and improvements to the game. The events indicated, supported by a marketing and communication campaign, translated into an increase in sales revenues – directly indicate the factors underlying the increase in revenues of CD Projekt.
CD Projekt’s EBITDA in the third quarter reached PLN 148.8 million, which means a year-on-year increase of 246.9%. The consensus assumed a result of 136.3 million zlotys.
After three quarters, revenues amount to PLN 623 million (+1.4% y/y), operating profit PLN 234.6 million (+70%) and net profit PLN 212.5 million PLN (+75%).
“Although we believed in the success of the series, its debut exceeded our expectations. In the first week, our anime reached the Netflix TOP10 in 19 countries. The popularity of the series and the positive reception of the 1.6 update for > >Cyberpunk 2077<< released a week earlier had a measurable impact on game sales" At the end of September, we announced that over 20 million players had purchased the game. We are happy with the synergy created by the expansion of our franchise,” said Adam Kiciński, president of CD Projekt, regarding the series.
For a long time, the expected excellent financial ratio discounted the exchange rate, which we wrote about in more detail In this article. At the end of Monday’s session, CD Projekt’s share had to pay PLN 138.52, or 81% more. more than the low in early September.
| Results of the CD Projekt group in the third quarter of 2022, their reference to the PAP Biznes consensus and the results of previous periods (data in PLN million) | |||||||
|---|---|---|---|---|---|---|---|
| 3Q2022 | Results | conc. | difference | r/r | q/q | Year 2022 | rdr |
| Income | 245.5 | 250.4 | -2.0% | 69.9% | 51.8% | 623.4 | 1.4% |
| EBITDA | 148.8 | 136.3 | 9.1% | 246.9% | 101.6% | 329.9 | 49.3% |
| EBIT | 97.1 | 102.7 | -5.4% | 521.2% | 86.2% | 234.6 | 69.7% |
| net profit jd | 98.7 | 95.5 | 3.3% | 504.0% | 120.2% | 212.5 | 75.0% |
| EBITDA margin | 60.6% | 54.5% | 6.10 | 30.91 | 14.98 | 52.91% | 17.00 |
| EBIT margin | 39.6% | 41.0% | -1.48 | 28.73 | 7.31 | 37.63% | 15.15 |
| net margin | 40.2% | 38.1% | 2.05 | 28.89 | 12.49 | 34.08% | 14.34 |
The game plans of CD Projekt
“We are focusing our work on adding to >>Cyberpunk 2077<, którego premiera zaplanowana została na następny rok. W tym momencie nad tytułem pracuje niemal 350 osób. Po premierze >> Phantom Freedom< zajmiemy się projektem >> Orion<, który będzie kolejną grą w uniwersum >>Cyberpunk 2077<<" - awarded by CD Projekt, Adam Kiciński.
The company has announced that conceptual work on the “Orion” project will begin next year. According to previous information provided by the company, CD Projekt Red North America will be responsible for the “Orion” project.
“Two major things happened to the Cyberpunk brand in September. First we released patch 1.6 (…), a week after our first Cyberpunk Edgerunners anime debuted on Netflix. (…) The popularity of the anime revived interest in the game – both among returning players and brand new ones” – said Adam Kiciński.
CD Projekt strengthens the teams working on the projects announced in the company’s strategy update.
“At that time, we also strengthened the >>Syriusz project teams< i >>Polaris<<, w których odpowiednio pracuje ponad 150 osób i 60 sposób" - powiedział Kiciński.
The “Polaris” project was announced in October as a new opening in the Witcher saga, which will be a trilogy. According to information from CD Projekt, provided on the occasion of the company’s strategic update, the games should be released within 6 years after the release of “Polaris”.
The “Sirius” project will be set in the world of Witcher and is intended to be a game for a wider audience, combining single and multiplayer gameplay.
The president of the company, Adam Kiciński, also said that during the next extraordinary general meeting, the board of directors will change the program for the years 2023-2027.
and. PAP, Michael Kubicki
