In the third quarter of 2018 the CD PROJEKT Capital Group posted 67 million PLN in sales revenues and a net profit of 15.5 million PLN.
“Although the third quarter traditionally marks the toughest period of the year for videogame developers, since it coincides with the vacation season, we are pleased by continuing strong sales of The Witcher 3: Wild Hunt, together with its expansion packs,” – says Piotr Nielubowicz, Vice President and CFO of CD PROJEKT. “Our net cash flows from operating activities were nearly two times greater than the Group’s net profit, at 29 million PLN. This enabled us to cover all R&D expenditures incurred in the third quarter directly from our positive cash flows. Considering the scale and extent of the development work currently underway at CD PROJEKT RED and GOG.com, this is by far the most intensive year in our history.”
Between July and September 2018 the CD PROJEKT Capital Group incurred 28 million PLN in expenditures on development projects, mostly related to the development of Cyberpunk 2077, GWENT: The Witcher Card Game and Thronebreaker: The Witcher Tales. By the end of September the Group’s aggregate balance of R&D expenditures reached 228 million PLN.
“The recent months have been very busy from the point of view of our development, marketing and business activities. In August we took part in gamescom – one of the world’s largest gaming fairs, held in Cologne – followed by our first-ever public release of a new Cyberpunk 2077 trailer, featuring 48 minutes of gameplay. We are very happy with the enthusiastic reaction of gamers and gaming media worldwide,” – remarks Adam Kiciński, President of CD PROJEKT S.A.
Important events, which occurred after the balance sheet date, include two significant distribution contracts concerning box editions of Cyberpunk 2077, both signed in October. Warner Bros. Home Entertainment will distribute the game in North America, while BANDAI NAMCO will handle distribution in 24 European countries.
Another highlight of October was the initiation of strategic cooperation with the Canadian Digital Scapes development studio, focusing on further development of Cyberpunk 2077.
On 23 October GOG.com released PC editions of Thronebreaker: The Witcher Talesand the newest version of GWENT: The Witcher Card Game, marking the finalization of the Homecoming project. The corresponding Steam releases took place on 9 November, with PlayStation 4 and Xbox One editions scheduled for release on 4 December 2018.