In the first quarter of 2021 CD PROJEKT continued to work on improving Cyberpunk 2077. A major business highlight of the period was the announcement of an updated strategy, which charts the Group’s main goals and development directions for the coming years.
– We intend to live up to what we promised our gamers in January. While we already see major improvements, a large part of the team continues to work on making sure that Cyberpunk provides even better entertainment to gamers. At the same time, we’re rolling out initial changes related to the internal transformation of our studio. This is a long-term project, but we regard it as essential if we are to efficiently develop two large AAA projects in parallel – says Adam Kiciński, President and Joint CEO of the CD PROJEKT Group.
In the first three months of 2021 the CD PROJEKT Group posted 198 million PLN in revenues, mainly from sales of Cyberpunk 2077 and The Witcher 3: Wild Hunt. The Group’s consolidated net profit for the period was 32.5 million PLN.
– Lower than usual net profitability is mainly due to continuing depreciation of Cyberpunk 2077 development expenditures, work on updating the game, and R&D activities related to future projects. These expenses are recognized as current-period costs and are not subject to capitalization – says Piotr Nielubowicz, Vice President and CFO of CD PROJEKT.
The past quarter was also marked by record-breaking positive cash flows. The Group’s aggregate balance of cash, bank deposits and treasury bonds increased by more than 1 billion PLN, to 1.9 billion PLN. Of this figure over 500 million PLN has been earmarked for a dividend, at 5 PLN per share, that will be paid out on 8 June.
– Our current level of financial reserves permits us to pay out the biggest dividend in our history while also securing the Group’s further growth. Thanks to a solid financial backbone we can remain fully independent in pursuing our ambitious plans – remarks Adam Kiciński.
In addition to further updates for Cyberpunk 2077 and free DLC content, CD PROJEKT also intends to publish dedicated next-gen editions of both Cyberpunk and The Witcher 3: Wild Hunt, both of which are planned for the second half of the year. Furthermore, The Witcher: Monster Slayer – a location-based AR mobile game by Studio Spokko – is scheduled for release this summer.
The full financial statement of the CD PROJEKT Group can be found at https://www.cdprojekt.com/en/investors/result-center/