2016 revenues of the Capital Group in both its activity segments - CD PROJEKT RED and GOG.com - continued to be dominated by ongoing strong sales of The Witcher 3: Wild Hunt and the game's two expansion packs, including the Blood and Wine pack released in May 2016.
- The CD PROJEKT Group reported 584 million PLN in sales revenues and 251 million PLN in net profit for 2016.
- Cumulative revenues from sales of The Witcher 3 topped 1 billion PLN in 1.5 years.
- Since the release of the first instalment in The Witcher trilogy CD PROJEKT has sold over 25 million copies of The Witcher games.
Revenues obtained by the Group in association with sales of The Witcher 3 and its expansion packs have, since the base game's release in May 2015, topped 1 billion PLN.
The strong market position of The Witcher underpins the commercial success of the Blood and Wine expansion pack, published in May. The 2016 revenues and net profit of the CD PROJEKT Capital Group were equivalent to 75% of the corresponding figures for 2015, which is when the release of The Witcher 3 took place. These excellent financial results for the past two years enable us to pursue new, ambitious undertakings and further expand our enterprise. Key development projects currently underway include Cyberpunk 2077 and GWENT: The Witcher Card Game. - says Piotr Nielubowicz, Vice President for Financial Affairs.
By the end of the year cumulative development expenses borne in conjunction with ongoing work on future releases were 62 million PLN. In 2016 alone CD PROJEKT spent nearly 56 million PLN on projects in progress. Despite the unprecedented financing requirements of its new games - Cyperpunk 2077, GWENT and Blood and Wine (released in May) - the Group was able to post 204 million PLN in positive cash flows.
For years we have consistently prioritized quality and focused on a limited range of products. The persistently strong sales of the entire The Witcher series vindicate our approach and contribute to long-term appeal of our releases. Between the launch of The Witcher in 2007 and the end of 2016 we have sold over 25 million copies of The Witcher games. - remarks Adam Kicinski, President of CD PROJEKT.
This year we will continue to expand The Witcher brand - it is, after all, the year of GWENT. We're in the process of organizing the game's first major tournament, with a 100 thousand USD prize pool. Another crucial round of beta tests will commence in spring, with the retail release to follow in the second half of 2017. - adds Kicinski.
The consolidated financial statement of the CD PROJEKT Capital Group, along with a discussion of the Group's financial result can be found on the Company website at https://www.cdprojekt.com/en/investors/result-center/.