CD PROJEKT Group is doing fine. Thanks to patch 1.5 for Cyberpunk 2077, profits jumped twice
The publisher and developer of Cyberpunk 2077 has published a financial report for the first quarter of 2022. According to him, the company is doing well. It’s about both revenue and profit.
Cyberpunk 2077Revenue
CD PROJEKT Group‘s revenue for January-March 2022 amounted to zł216.4 million ($50.3 million). This is more than a year earlier for the same period (‘zł197 million or $45.3 million).
To understand: the first quarter of 2021 was a record first quarter in terms of revenue in the company’s history.
The bulk of the revenue for January-March 2022 came from Cyberpunk 2077, whose sales jumped significantly during this period.
All thanks to a new patch that added native support for the latest generation consoles — Xbox Series X|S and PlayStation 5.
The company itself says this: “Patch 1.5 has positively influenced both the perception of the game and its sales (especially on consoles).” In February-March, more than 60% of Cyberpunk 2077’s revenue came from the Xbox Series X|S and PlayStation 5.
Cyberpunk 2077 sales in the first quarter of 2022Profit
The company’s operating profit doubled compared to last year. From ‘zł43 million ($10 million) to ‘zł85 million ($19.8 million). The growth of operating profit was influenced not only by revenue growth, but also:
- significant reduction of administrative expenses;
- a noticeable reduction in the cost of production of products.
Financial indicators of CD PROJEKT Group for the first quarter of 2022 and 2021 (operating profit is not indicated here, it can be found here)
The latter was mainly due to the full amortization of previous GWENT development costs.
Simply put, the company carried out the transfer of operating costs to the cost of manufactured products.
As expected, this affected the size of the GWENT team, as evidenced by the graph below (it shows how the group’s employees are distributed between projects).
For understanding: the GWENT team remains substantial in size at the moment. It is inferior in number to only two development teams, which are described below.Distribution of CD PROJEKT Group teams by project
As can also be seen from the graph, the main efforts of CD PROJEKT Group today are focused on creating an extension for Cyberpunk 2077 and creating new games, including a new title in The Witcher universe.
For understanding: in the graph above, SPOKKO and The Molasses Flood are studios purchased by CD PROJEKT Group. The first is engaged in mobile games, the second is a game on the IP belonging to the Poles.
