CD Projekt (CDR) Q4 2024 earnings summary

Executive summary

• The Witcher 4 entered full-scale production with over 400 developers, leading industry attention and strong fan anticipation after its trailer reveal at The Game Awards 2024.

• Cyberpunk 2077 surpassed 30 million copies sold, with Phantom Liberty exceeding 8 million units, and the franchise expanding to macOS and Netflix animation.

• The company is advancing multiple projects, including The Witcher 4 (in production), Sirius (pre-production), Orion (concept), and Hadar (IP concept phase).

• Strategic partnership formed with Scopely to develop a new game based on company IP.

Financial highlights

• 2024 group sales revenue reached PLN 985 million, down 20% year-over-year, driven mainly by Cyberpunk and Phantom Liberty (PLN 589 million) and stable Witcher product sales (PLN 163 million).

• Net profit for 2024 was PLN 470 million, just 2% below the prior year, with net profitability at 48% for the group.

• Financial reserves in cash, deposits, and bonds increased by PLN 163 million, totaling PLN 1.47 billion at year-end.

• EBIT for 2024 was PLN 365.5 million, down 22% year-over-year.

• Gross profit on sales declined 13% year-over-year to PLN 737.9 million.

Outlook and guidance

• The Witcher 4 will not launch before the end of 2026; no precise release date provided.

• Plans to double the Orion (Cyberpunk sequel) team by end of 2025; ongoing recruitment to support multiple projects.

• Management aims to achieve PLN 2 billion cumulative net profit for the 2023–2026 incentive program, with PLN 951 million delivered so far.

• New dividend policy from 2025: at least 25% of net profit to be recommended for payout, with flexibility for timing and potential share buybacks.

• Cyberpunk 2077 Ultimate Edition is set to launch on Macs in 2025.