Polish video game developer CD Projekt (CDR.WA) announced a 44% increase in first-quarter net profit on Tuesday, surpassing analyst expectations. The net profit reached 100.1 million zlotys ($25.6 million), significantly higher than the anticipated 76 million zlotys, primarily driven by robust game sales.
Sales revenue for the quarter increased by 30% year-over-year to 226.8 million zlotys. This growth was mainly attributed to the sustained strong sales of “Phantom Liberty,” an expansion of the company’s flagship game, “Cyberpunk 2077.”
Despite the impressive financial performance, CD Projekt does not foresee major game releases in the upcoming years. Consequently, the company must allocate resources to new projects, as highlighted by Finance Chief Piotr Nielubowicz. He noted, “This is something we’re well prepared for, owing to our cash reserves which we have accumulated over the years. We also count on continuing strong sales of our back catalogue.”
Among the new ventures is the inaugural installment in a trilogy expanding the highly successful “The Witcher” medieval fantasy franchise. This project, code-named Polaris, had 407 individuals working on it as of April 30 and is set to enter production in the latter half of the year. Analysts anticipate its debut around 2026 or 2027. Additionally, the team working on the “Cyberpunk 2077” sequel, under the code name Orion, comprised 56 developers as of April 30.
In recognition of its ongoing efforts, CD Projekt received the Evolving Game award for “Cyberpunk 2077” at the BAFTA Games Awards 2024 in April. Joint CEO Michal Nowakowski commented, “We are very happy to receive such a prestigious industry award. We see it as vindication of our hard work on Cyberpunk 2077 over the past three years, as well as on its well-received Phantom Liberty expansion.”
