Comprehensive Overview of CDPR Q1 Financial Results for 2018
Hi all,
I went through the trouble of reading through the entire transcript for Q1 Financial Results for the teleconference that took place during 24th of May - and made a condensed version of main points discussed there.
For those who might not want to read the wall of text I've made a video summarising all the points as well:
https://www.youtube.com/watch?v=RhMk87RdwNI
General Financial Situation
I hope you will find this useful!
Hi all,
I went through the trouble of reading through the entire transcript for Q1 Financial Results for the teleconference that took place during 24th of May - and made a condensed version of main points discussed there.
For those who might not want to read the wall of text I've made a video summarising all the points as well:
https://www.youtube.com/watch?v=RhMk87RdwNI
General Financial Situation
- CD Projekt Group’s sales remain strong.
- 2/3 of the sales is attributed to CD Projekt Red, 1/3 to GOG.com
- Operating costs have remained same when looking at all three quarterly periods – mounting to 22 million PLN / 5,9 million USD / 4,4 Million GBP
- Even though they are still in process of ramping up the video game development and continue to recruit people. This is good.
- Gwent sales revenue compared to final quarter of 2017 has seen an increase. However weak US dollar has had negative impact.
- Most important current projects are Cyberpunk, Gwent and Thronebreaker
- Most important investment activity is the ongoing R&D work – development of new video games, including Cyberpunk, GWENT and Thronebreaker, as well as new technologies.
- Intention is to couple Homecoming with the simultaneous release of Thronebreaker.
- The CEO said that Homecoming communication will begin after E3, it will begin sometime in early July and Homecoming has nothing to do with E3
- When asked if CDPR is working on another RPG, the answer was yes – Thronebreaker, which has evolved into a fairly sizeable RPG, providing several dozen hours of gameplay.
- Homecoming and Thronebreaker is scheduled to be released in Q4 of 2018, this was reaffirmed multiple times, keyword being scheduled, this is more down to nature of the business rather than uncertainty.
- Wroclaw studio - Strange New Things - will collaborate with Cyberpunk’s development.
- CDPR does not plan to acquire any further studios, the acquisition of Strange New Things studio in Wroclaw was simply viewed as an excellent match for CDPR’s vision and enabled them to inject significant new experience into their own development process
- They have been working on their projects for several months now.
- They are expecting the development costs for Cyberpunk to increase when the game nears the completion, however this is fairly standard for any game development and costs will be offset with sales revenue and what not.
- The Cyberpunk development team is slightly over 300 strong.
- The Cyberpunk development team is approximately three times larger than the GWENT and Thronebreaker development teams put together.
- Cyberpunk 2077 campaign will not be short. CDPR needs to, or rather wants to tell players a great deal about Cyberpunk universe. It’s a new release, a new world, and they want to share our vision for Cyberpunk.
- Q: CDPR stated that they considers 5 month campaign between the announcement and the release to be a short campaign. You should take this more in lines of that campaign will be more than likely 6+ months long rather than 6 months exactly.
- Q: Are there any preferences regarding the amount of resources committed to this campaign in relation to the cost of the game itself? I mean, have you settled on an amount – for example, 10% or 20% of the development budget? AK: No, We have no such arrangements in place,
- CDPR understands that developing and promoting the game will cost more than in the case of The Witcher 3, but it’s too early to speculate about the details.
- The closer CDPR will get to release the more accurate their sales forecasts will be, giving them a better idea of how much to allocate for marketing. That’s how CDPR has always operated, and it can even be called an industry standard, as many other companies operate in a similar way.
- When asked directly whether Cyberpunk will be at Expo – they declined to answer
- When asked whether CDPR will participate at Microsoft conference preceding E3 – again – they said they cannot comment.
- In both cases, PR team was shaking their head notifying Adam Kacinski that he cannot answer that question
I hope you will find this useful!
Last edited: