Russia and Belarus accounted for 5.4% of CD Projekt RED revenues before company’s exodus from these markets
CD Projekt has opened up about the potential impact of its exodus from Russia and Belarus. The company noted that it won’t “have a significant negative impact” on its operations.
On April 14, CD Projekt issued a report for the fiscal year ending December 31, 2021. The company assured its investors that the “political and economic situation in Ukraine,” as well as its decision to suspend sales in Russia and Belarus, won’t affect its business.
- In the 12-month period between March 2021 and February 2022, the “aggregate share of Russia and Belarus in revenues from sales of products in the CD Projekt RED segment and in GOG sales revenues amounted to 5.4% and 3.7% respectively.”
- The company noted that the Polish currency weakened against the euro and the US dollar at an early stage of hostilities. So investors should view this process as “favorable circumstance,” considering that most CD Projekt sales are exports.
- CD Projekt terminated or is in the process of terminating collaboration with Russian suppliers. This means that the company doesn’t do or plan any further business with the country’s entities.
- This goes in line with its decision to finish The Witcher 3 next-gen upgrade, which has been in development by Saber Interactive’s office in Russia, in-house.
- According to CD Projekt, the current crisis in Ukraine shouldn’t significantly affect its earnings in 2022. However, any long-term assessments and forecasts in this regard are “fraught with uncertainty.”
Other takeaways from CD Projekt’s report
- The company reported total sales revenue of PLN 888 million ($207 million) for 2021, which is down 58.4% year-over-year.
- CD Projekt had a net profit of PLN 219 million ($51 million), which is down 81% year-over-year.
- Cyberpunk 2077 has sold over 18 million copies since its launch in December 2020. While this number might seem huge, it is also lackluster, taking into account that the company sold 13 million units in the first week.
- The Witcher franchise has surpassed 65 million copies sold, including 40 million units of The Witcher 3: Wild Hunt.
