CD Projekt's first full quarter since Cyberpunk 2077 release sees sales up 2%
Profits sink 65% as publisher cites tough comparison against last year's first quarter in explaining modest revenue growth
The December debut of Cyberpunk 2077 carried CD Projekt to record heights, but the publisher's quarterly report encore was somewhat less impressive.
While CD Projekt posted record first-quarter sales for the three months ended March 31, the PLN 198 million ($53.9 million) it put up in Cyberpunk 2077's first full quarter on sale was just 2% more than what it had brought in for the same period last year.
As for what was behind the nearly flat sales, CD Projekt cited a tough comparison against its first quarter 2020 performance.
"In 2020 the sales figures posted by the group benefitted from lockdowns and stay-at-home restrictions introduced during that time in various countries due to the spread of the COVID-19 pandemic, increased recognition of The Witcher universe in the wake of the December 2019 premiere of The Witcher TV series, as well as revenues generated from sales of The Witcher 3: Wild Hunt for Nintendo Switch, also released in late 2019," the company said.
"These factors, all of which supported sales in Q1 2020, subsided throughout the year, leading to lower revenues from sales of The Witcher product family in 2021, but offset by revenues from sales of Cyberpunk 2077 - mainly digital editions of the game for PC and Xbox platforms."
While sales were up for the quarter, profits were down 65% year-over-year, with the company reporting a net income of PLN 32.5 million ($8.87 million).
"Lower than usual net profitability is mainly due to continuing depreciation of Cyberpunk 2077 development expenditures, work on updating the game, and R&D activities related to future projects," CD Projekt VP and CFO Piotr Nielubowicz said.
The company did not provide an update on Cyberpunk 2077 sales.
CD Projekt's current slate includes next-gen versions of Cyberpunk 2077 and The Witcher 3: Wild Hunt in the back half of this year, as well as the launch of the location-based mobile game The Witcher: Monster Slayer, set for release by Studio Spokko this summer.