Greetings,
In the third quarter of 2017 the CD PROJEKT Capital Group focused mainly on developing Cyberpunk 2077 and expanding GWENT.
Regarding GWENT, we streamlined the game's core engine and improved its mechanics, including gameplay balance.
In the coming months we intend to provide even more reasons for players to frequently revisit the game and spend even more time playing GWENT.
To this end, we are setting up a live ops department tasked with regularly adding new challenges and events to the game.
GWENT will soon be migrated to a new version of our technology stack – a move which will facilitate our future plans concerning this project.
We see strong potential in single-player gameplay and have decided to pursue it further.
Thronebreaker is scheduled for release during the coming year as the marketing campaign peaks and even more players are involved in the game.
In late August we brought GWENT to China, where the game is currently undergoing closed beta tests.
Despite this early phase of the project, China continues to surprise us – in the positive sense – and we are happy with our to-date achievements in this country.
Moving on to results. ... The third quarter is a difficult period, since it coincides with the summer vacations, however the sales revenues of the CD PROJEKT Capital Group reached nearly 85 million PLN
– barely 16% less than during the corresponding period in 2016, marked by the release of The Witcher 3: Game of the Year Edition.
Our net financial result for the third quarter of 2017 was 36 million PLN, essentially the same as during the corresponding period in of 2016.
Sales revenues during this period continued to be heavily influenced by phenomenally strong sales of The Witcher 3 and its expansion packs, available both as standalone items and as the Game of the Year Edition bundle, published last year.
In Q3 2017 we also reached another major milestone: total pre-tax sales profit generated by The Witcher 3 and its expansion packs topped 1 billion PLN.
The third quarter again saw CD PROJEKT Capital Group results bolstered by GWENT, which remains in its beta phase, and by the GOG.com service.
GOG sales results in the third quarter of 2017 were over 40% higher than in the corresponding period of 2016. From the sales perspective, this was the best third quarter in the platform's history – a fact reflected by the profitability of GOG.com.
The Group's cash balance provides us with a comfortable safety buffer. The total value of our cash assets and bank deposits at the end of September was 638 million PLN – an increase by 55 million throughout the third quarter 2017.
Note that during this time the Group also incurred 18 million in development expenses associated with our future releases – especially Cyberpunk and GWENT.
I wish to thank our fans and, as always, invite you to monitor our activities using social media channels – twitter, Facebook, and YouTube – as well as to visit our investor relations website at cdprojekt.com.
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