CD Projekt has released its financial report for the full year ended December 31, 2022. Thanks to strong sales of Cyberpunk 2077, the company recorded its second-best year in terms of both revenue and net profit.
- According to CD Projekt Group’s 2022 financial results, the company reached PLN 952.5 million ($221.6 million) in revenue in 2022, up 7% year-over-year.
- Net profit was PLN 347 million ($80.7 million), up 66% year-over-year. It is worth noting that the GOG segment remains unprofitable, with a total loss of PLN 29.7 million ($6.9 million) in 2022.
- The CD Projekt RED segment, which operates The Witcher and Cyberpunk brands, accounted for 81.9% of total revenue. Game sales were up 11% compared to 2021, while sales of services were down 67% year-over-year.
- North America accounted for 71% of total revenue, followed by Europe (17.6%) and Asia (6.9%). The share of domestic sales was 3%.
- Digital sales accounted for 89.2% of CD Projekt’s annual revenue, while boxed games only generated PLN 31.3 million ($7.3 million) in sales.
- As of December 31, 2022, the company’s market capitalization was PLN 13.1 billion ($3.05 billion).
- In a management board report, CD Projekt also noted that the “effect of the Russian armed invasion of Ukraine do not have a significant negative impact on the Group’s operations.” The company currently doesn’t intend to further collaborate with Russian or Belarusia suppliers.
- The total shares of these countries in sales of CD Projekt’s products on GOG amounted to 3.7% between March 2021 and February 2022.
Game sales and other data
- Cyberpunk 2077, which gained a second wind after the release of several updates and the Edgerunners anime series, remained CD Projekt’s highest-grossing product in 2022.
- Its sales were up 18% year-over-year. However, the company didn’t provide updated figures, only reiterating that the game topped 20 million units sold on September 28.
- From the graph below, it can be seen that Cyberpunk 2077 generated just under PLN 500 million ($116 million), which is over 50% of CD Projekt’s total revenue. This is also more than The Witcher 3’s annual revenue from 2016 to 2022.
- In 2022, digital editions of Cyberpunk 2077 accounted for 94% of its total sales, compared to the 58% share in 2020.
- When it comes to platforms, PC accounted for 52% of the game’s sales, followed by PlayStation (29%) and Xbox (18%).
- 96% of The Witcher 3’s revenue came from digital sales. PC accounted for 64% of the game’s sales in 2022, followed by PlayStation (17%), Xbox (13%), and Nintendo Switch (6%).
- In 2022, CD Projekt posted PLN 473.2 million ($110 million) in expenditure on development projects, up 35% year-over-year.
- The company continues to increase the size of teams working on new projects. As of February 28, the Phantom Liberty expansion for Cyberpunk 2077 remains its main focus. The size of the team working on the next Witcher title codenamed Polaris is also growing.
- The company also commented on its decision to write off neary $10 million spent on a new Witcher title from The Molasses Flood. “Our intention was to cut costs early and give ourselves time for reassessment. We don’t want to carry on with projects that we are not aligned with,” CD Projekt CEO Adam Kiciński said during an earnings call, adding that the company will reevaluate the concept and create a new framework for it.