Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CD Projekt SA (OTGLF, Financial) achieved a major milestone with The Witcher 4 entering full-scale production, involving over 400 developers.
- The Witcher 4 trailer received significant attention, becoming the most watched at the game awards event with over 8 million views in 72 hours.
- Cyberpunk 2077 maintains a high rating on Steam and won a BAFTA award, indicating strong community appreciation.
- Sales of Cyberpunk 2077 and its expansion, Phantom Liberty, were robust, with over 13 million and 8 billion copies sold, respectively.
- CD Projekt SA (OTGLF) announced a strategic partnership with Scopely to develop a game within one of its IPs, indicating future growth opportunities.
Negative Points
- The Witcher 4 is not expected to be released by the end of 2026, raising concerns about the timeline for future releases.
- The reorganization of project teams around Sirius and The Witcher remake may impact project timelines.
- The company's net profit target for the 2023-2026 incentive program remains challenging, with over PLN1 billion still needed.
- There is uncertainty regarding the financial impact of the new amortization schemes on future results.
- The use of generative AI tools in development is limited due to legal and IP concerns, potentially affecting innovation.
Q & A Highlights
Q: Can you provide details on the partnership with Scopely, including any upfront licensing fees and project timelines?
A: Michal Nowakowski, Joint CEO: Unfortunately, we cannot provide further information on the Scopely partnership at this time. More details will be shared in the future.
Q: Will The Witcher 4 be released by the end of 2026, and can we expect it in 2027?
A: Piotr Nielubowicz, CFO: We are not announcing a precise launch date for The Witcher 4 yet. However, it will not be released by the end of 2026. We cannot confirm a 2027 release at this time.
Q: Does the reorganization of project teams affect the timing of Sirius, The Witcher remake, and The Witcher 4?
A: Michal Nowakowski, Joint CEO: The reorganization does not affect the timing of these projects. Sirius and The Witcher 4 are developed independently, with no significant overlap between the teams.
Q: How might the release of GTA VI impact the standard price of AAA games?
A: Michal Nowakowski, Joint CEO: While we have no specific knowledge, there is a likelihood that GTA VI could influence AAA game pricing. If the standard price changes, it could benefit us.
Q: What are the chances of achieving the incentive program target of PLN 1 billion net profit by 2026 without new projects?
A: Piotr Nielubowicz, CFO: Achieving the target relies on the longevity of our products, franchise management, and new content releases. We expect to be active in these areas to meet the goal.
Q: Can you provide an update on the development costs for The Witcher 4?
A: Piotr Nielubowicz, CFO: We do not guide on future budgets. The headcount is at the target size, and costs will fluctuate as development progresses, especially in later stages like localization and QA.
Q: What is the status of animation and live-action projects?
A: Michal Nowakowski, Joint CEO: We have no specifics to share. Animation teasers were shown last year, and more information is expected soon. Live-action updates will follow later.
Q: What percentage of investment expenditures are allocated to animation, live-action, and announced projects?
A: Piotr Nielubowicz, CFO: Most investments are in major products like The Witcher 4 and Orion. Other projects are smaller in scale compared to these flagship titles.
Q: Is it possible to release the entire new Witcher trilogy within a 6-year window?
A: Michal Nowakowski, Joint CEO: We see no obstacles to achieving this goal. Our experience with Unreal Engine 5 is positive, and we are progressing as planned.
Q: What impact will the new amortization schemes have on future depreciation?
A: Piotr Nielubowicz, CFO: The updated amortization schemes reflect the strong performance of Cyberpunk and Witcher 3. For 2025, Cyberpunk and Phantom Liberty's quarterly amortization will decrease by PLN 3 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
