CI Games (CIG) Q4 2024 earnings summary

Executive summary

• 2024 saw no new game releases, resulting in lower revenue compared to 2023, but operational improvements and a successful turnaround of the Lords of the Fallen franchise were achieved.

• Integration of all development studios into one entity improved efficiency and project delivery.

• Major funding was secured from Epic Games, which is also the exclusive PC publisher for the next Lords of the Fallen installment.

• The launch of Lords of the Fallen v2.0 restored player confidence and significantly boosted sales and sentiment for the IP.

Financial highlights

• Net revenue exceeded PLN 80 million, EBITDA reached PLN 43 million, and net cash flow was minus PLN 24 million for 2024.

• Operating loss was PLN 4 million, mainly due to amortization costs of Lords of the Fallen.

• EBITDA margin increased from 37% to 53% year-over-year, driven by lower selling and G&A costs.

• Sales margin declined from 54% to 27% due to amortization of Lords of the Fallen.

• Lords of the Fallen contributed 61% and Sniper Ghost Warrior Contracts 2 contributed 20% of group revenue.

Outlook and guidance

• Project 3, the next Lords of the Fallen game, is on track for a 2026 launch, with an announcement and trailer expected in the coming months.

• Revenue is expected to increase significantly based on the strong performance of Lords of the Fallen v2.0.

• Marketing for future releases will be more efficient and at a lower budget than in 2023.

• Cash flow is secured with current financing and expected to remain strong until the next major release.