CD Projekt shares have dropped to the lowest level in over three years soon after the Cyberpunk 2077 developer released its new financial report. Analysts also reduced their expectations for the company’s revenue.
After the Warsaw Stock Exchange resumed trading sessions on April 19, CD Projekt saw its stock decline by 10.24%. It closed at PLN 149.9 ($35.09) per share, which is the lowest rate since January 4, 2019.
CD Projekt reported a net profit of PLN 87.5 million ($20.48 million) in the fourth quarter of 2021, which is 9.6% higher than analysts’ expectations. The company’s revenue for the whole 2021 was PLN 888 million ($207 million), mainly driven by the Cyberpunk 2077 sales.
Despite these results, investors raised concerns over a few alarming announcements made during the presentation. According to Polish business outlet Bankier.pl, there were three key reasons for the shares drop:
- CD Projekt plans to release a major expansion for Cyberpunk 2077 only in 2023;
- The game sales were pretty low — 4.3 million units vs. 5.5 million units expected by analysts;
- The company’s decision to suspend its operations in Russia and Belarus might also affect its financial results, although these countries accounted for only 5.4% of CDPR’s global revenue from sales.
As a result, analysts reduced their expectations for CD Projekt’s revenue for 2022 to PLN 882 million ($206.4 million). It is down 36.8% compared to previous forecasts. On top of that, Credit Suisse analysts lowered the target price for the company’s stock to PLN 100 ($23.4) per share, compared to the previous recommendation of PLN 214 ($50).