CD Projekt SA reported on Monday that its revenue fell by greater than half within the first quarter from a 12 months earlier as its flagship sport, “Cyberpunk 2077,” was saved off Sony’s PlayStation Retailer, which an organization official stated will proceed to affect outcomes.
CD Projekt didn’t say what number of items of “Cyberpunk 2077” it offered within the quarter. The corporate’s chief monetary officer, Piotr Nielubowicz, instructed a convention name that about 60% of first-quarter product gross sales got here from Cyberpunk gross sales, with out offering particulars.
Analysts have stated gross sales had been seemingly low, attributable to Cyberpunk’s absence from the PlayStation Retailer and launch of a serious patch simply in late March.
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“The final state of affairs so long as we’re not again on the Sony retailer has not modified. One of many main marketplaces for us is just not accessible and we generate a lot of the gross sales on the PC/digital channels,” an organization official instructed the convention name.
Internet revenue within the first quarter fell 64.7% to 32.5 million zlotys, nicely beneath the 80 million zlotys anticipated by analysts, impacted by depreciation of Cyberpunk 2077 growth expenditures and work on fixing the sport. Income fell 2% to 197.6 million zlotys ($53.94 million).
Promoting prices rose 79.6% to 62.1 million zlotys within the quarter.
Battered by Cyberpunk’s launch, CD Projekt plans to start out parallel high-budget developments from 2022, in addition to search for merger and acquisition alternatives.
Future gross sales progress, although, relies on its capability to re-engage Cyberpunk gamers. It confirmed plans to publish free downloadable content material and replace each Cyberpunk and The Witcher 3 to next-generation consoles within the second half.
Final 12 months, the corporate’s shares hit an all-time excessive of 464.2 zlotys within the run-up to Cyberpunk’s launch, however have misplaced over 60% of their worth.
“Whereas outcomes are weaker than anticipated, we predict that a lot of the negativity associated to the quarter is already priced-in,” Credit score Suisse analysts stated in a word.