CI Games (CIG) Q3 2024 earnings summary

Executive summary

• Net revenue for the first nine months of 2024 reached PLN 68.9m, up from PLN 59.1m year-over-year, driven by "Lords of the Fallen" and continued sales of "Sniper Ghost Warrior Contracts 2" and United Label titles.

• EBITDA for the period was PLN 39.8m, with net profit at PLN 0.6m, a turnaround from a net loss of PLN 4.4m in the same period last year.

• Cost increases were mainly due to amortization of "Lords of the Fallen"; selling and administrative costs declined due to lower marketing and recruitment expenses.

• The Group implemented two rounds of redundancies and restructured operations to improve efficiency and preserve business strength.

• Significant events included the entry of "Lords of the Fallen" into Game Pass, a new credit facility, and a strategic update for 2025-2028.

Financial highlights

• Net revenue: PLN 68.9m (up 16.6% year-over-year); net profit: PLN 0.6m (vs. net loss of PLN 4.4m year-over-year).

• EBITDA: PLN 39.8m (vs. PLN 2.5m year-over-year); gross profit: PLN 22.2m (down from PLN 31.7m year-over-year).

• Operating cash flow: PLN 79.2m; net cash outflow: PLN 12.9m due to high investment and financing outflows.

• Total assets as of 30.09.2024: PLN 227.7m; equity: PLN 155.2m.

• Net margin improved to 0.9% from -7.4% year-over-year.

Outlook and guidance

• Updated strategy targets major releases in 2026 (Project III, LOTF sequel), 2027 (SGW Evolved), and 2028 (Project H), leveraging Unreal Engine 5 and focusing on core IPs.

• United Label to publish 1-3 high-quality titles per year, with two new releases in the next six months.

• Financing for upcoming projects secured through operating cash flow, Epic Games investment, and a PLN 15m bank facility, with plans to increase debt.