CD Projekt (OTGLF, Financial) has moved forward in the development of its next major release in the "Cyberpunk" series. Known initially as Project Orion, the game, now titled "Cyberpunk 2," has transitioned from its conceptual phase to the preproduction stage. This marks a significant milestone for the CD Projekt Red team as they prepare for the next phase of development in this highly anticipated project.
OTGLF Key Business Developments
Release Date: March 25, 2025
- Revenue: PLN985 million for 2024, 80% of the previous year's revenue.
- Cyberpunk and Phantom Liberty Sales: PLN589 million contribution to group sales.
- The Witcher Products Sales: PLN163 million, slightly more than the previous year.
- Selling Expenses: Decreased by PLN108 million to PLN135 million.
- Net Profit: PLN470 million, 2% less than the previous year.
- Net Profitability: Increased to 48% for the group, 58% for CD Projekt RED.
- Cash Reserves: Increased by PLN163 million, reaching PLN1.47 billion.
- Development Expenditures: Increased by PLN168 million, mainly due to The Witcher 4, Series, and Orion projects.
- Dividend Policy: Starting 2025, a dividend of at least 25% of net profit recommended.
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.
