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CD Projekt realized a better-than-expected $21.94 million profit for Q3 2022 due to the soaring popularity of an IP product.
CD Projekt recently posted its Q3 2022 financial report, which saw profit jump more than 500% on rousing sales of its flagship Cyberpunk 2077 game. The Polish video game developer, publisher, and distributor surpassed earnings expectations for the period ended September 30th, with a net profit of 98.7 million zlotys, or $21.94 million. Meanwhile, analysts had CD Projekt’s third-quarter net profit at 88 million zlotys.
CD Projekt Q3 2022 Bottom Line Received Boost from Anime Series
According to CD Projekt, heightened interest in Cyberpunk 2077 came from the Cyberpunk: Edgerunners anime series. The anime show premiered on Netflix in September and is already proving popular. In addition, the Warsaw-based company also spurred interest by releasing an update to the action role-playing video game. Weighing in on Cyberpunk’s explosive popularity and its concomitant effect on CD Projekt’s bottom line, the company’s chief executive Adam Kicinski stated:
“The popularity of the series and the positive reception of the 1.6 update to Cyberpunk 2077, released a week earlier, had a measurable impact on the game’s sales.”
In addition, CD Projekt’s chief financial officer Piotr Nielubowicz also commented on the positive development, saying:
“In terms of financials, this was the best third quarter in our entire history. With consolidated revenues at 246 million PLN [$54.6m]– mostly owing to strong sales of Cyberpunk–the Group posted 99 million PLN [$21.3m] in net profit.”
“This translates into a net profitability of 40% for the whole Group, and a whopping 47% for the CD Projekt Red segment. We carry on with intensive development work on the Cyberpunk expansion, as well as on other projects,” added Nielubowicz.
For Q3 2022, CD Projekt reported revenue of 245.5 million zlotys which also comfortably beat the 239 million zlotys expectation of analysts.
Cyberpunk 2077 first launched in 2020, and CD Projekt revealed in September that it had sold 20 million copies of the video game so far. This figure also compares favorably to the 13.7 million the video game developer said it sold in Cyberpunk’s debut year.
CD Projekt also claimed in September that the Cyberpunk game drew in more than 1 million players daily. The company plans to release an expansion pack, called Phantom Liberty, to the base game sometime in 2023. Although the base Cyberpunk 2077 game is available on Windows and several PlayStation and Xbox consoles, Phantom Liberty will see a limited console release. According to CD Projekt, the anticipated expansion pack will only be available on the PS5, Xbox Series X/S consoles, and PC next year. Furthermore, the company stated that a full-fledged sequel to the Cyberpunk 2077 video game is currently in development at a new studio in Boston.
CD Projekt recently revealed that it is working on a complete remake of another popular video game series – The Witcher. The company also claims to have numerous other interactive and intellectual property (IP) projects in the works.
Founded in 1994, CD Projekt joined the Polish capitalization-weighted stock market index WIG20 in March 2018.
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