📉 CD Projekt reported a drop in profit, but still beat expectations.
Polish video game giant CD Projekt $CDR.WA has released its results for 2024, showing that even a year without a new game release can deliver very solid numbers. Although the company saw its net profit drop by 2,3 % to 469.9 million zlotys (approx. USD 122 million)However, it beat analysts' expectations, who had estimated a profit of around PLN 390 million. Revenues fell by almost 20 % to PLN 985 million, reflecting the absence of a major new title.
🔥 The driving force behind last year's results was still the video game Cyberpunk 2077 - thanks mainly to strong DLC sales (expansions) Phantom Liberty, which sold more than 8 million copies.Cyberpunk itself surpassed the 30 million sales mark , making it one of the most successful game titles of the last decade. Cyberpunk 2077, together with Phantom Liberty , generated a profit of almost PLN 600 million and contributed to making 2024 the third best year in the studio's history in terms of profitability.
📉 Still, we need to look to the future with caution. The coming years will be a challenging time for CD Projekt as management has confirmed that the next big title planned (The Witcher IV) won't arrive for another year 2026. Until then, the company will rely on monetization of existing brands, new releases, cross-platform transitions, and ancillary projects. Already this year, it will head Cyberpunk 2077: Ultimate Edition also on macOSwhich will open the door to a new group of users.
📺 The expansion of brands outside the gaming industry is also interesting - a new animated project from the world of Cyberpunk for the platform Netflixwhich CD Projekt builds on the success of the series Cyberpunk: Edgerunnerswhich significantly revived interest in the game after its release.
🔮 Outlook 2025-2026:
The company will draw on sales of existing games.
It expects to generate new revenue from expansion to new platforms, additional editions and media projects.
However, the company is mostly focused on The Witcher IV, which is part of a new planned trilogy.
💬 CD Projekt confirms that it is one of the exceptional game companies that can maintain a solid performance without constantly producing new titles. The question remains whether it will be able to effectively bridge the several-year development period and with the new Witcher trilogy to build on the successes of the past.
Over the past year, the company's stock has gained more than 99%!
Does anyone follow this company's stock, or are you a fan of the Witcher world? What's your take on the video game giants?