Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
2
Disclaimer
This English language translation has been prepared solely for the convenience of English speaking
readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or
approximations may exist. In case of any differences between the Polish and the English versions, the
Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in
this regard.
3
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
CD PROJEKT Group - Selected financial data translated into EUR
PLN EUR
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Net sales of products, services, goods for resale and
materials
652 375 767 692 151 638 167 717
Cost of sales of products, services, goods for resale
and materials
188 326 251 356 43 774 54 914
Operating profit/(loss) 220 874 281 152 51 340 61 423
Profit/(loss) before tax 267 279 350 364 62 126 76 544
Net profit/(loss) attributable to owners of CD PROJEKT S.A. 248 150 289 981 57 680 63 352
Net cash from operating activities 368 145 244 768 85 571 53 474
Net cash from investing activities (361 046) (183 968) (83 921) (40 191)
Net cash from financing activities (102 872) (102 395) (23 911) (22 370)
Net increase/(decrease) in cash and cash equivalents (95 773) (41 595) (22 261) (9 087)
Number of shares (in thousands) 99 911 100 388 99 911 100 388
Net earnings/(loss) per share (in PLN) 2.48 2.89 0.58 0.63
Diluted earnings/(loss) per share (in PLN/EUR) 2.47 2.89 0.57 0.63
Book value per share (in PLN/EUR) 25.73 22.00* 6.01 4.75*
Diluted book value per share
(in PLN/EUR)
25.62 21.99* 5.99 4.74*
Dividend declared or paid per share
(in PLN/EUR)
1.00 1.00 0.23 0.22
* The data presented were translated as at 30.09.2023
PLN EUR
30.09.2024 31.12.2023* 30.09.2024 31.12.2023*
Total assets 2 755 416 2 613 500 643 924 601 081
Liabilities and provisions for liabilities
(excluding accruals)
167 986 194 792 39 257 44 800
Non-current liabilities 23 065 38 774 5 390 8 918
Current liabilities 161 435 171 503 37 726 39 444
Equity 2 570 916 2 403 223 600 808 552 719
Share capital 99 911 99 911 23 349 22 979
* restated data
The financial data presented above were translated into EUR as follows:
Items of the condensed interim consolidated income statement and the condensed interim consolidated statement of cash
flows were translated at exchange rates calculated as an arithmetic mean of the exchange rates announced by the National
Bank of Poland for the euro applicable as at the last day of each month in a given reporting period. These rates were,
respectively, as follows: from 1 January to 30 September 2024: 4.3022 PLN/EUR and from 1 January to 30 September 2023:
4.5773 PLN/EUR.
Items of assets, liabilities and equity in the condensed interim consolidated statement of financial position were translated at
exchange rates announced by the National Bank of Poland for the euro applicable as at the last day of the reporting period.
These rates were, respectively, as follows: 4.2791 PLN/EUR as at 30 September 2024 and 4.3480 PLN/EUR as at 31 December
2023.
4
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Table of contents
Key financial data of the CD PROJEKT Group ................................................................................................................................................................. 6
Interim condensed consolidated income statement................................................................................................................................................. 7
Interim condensed consolidated statement of comprehensive income ........................................................................................................... 9
Interim condensed consolidated statement of financial position ....................................................................................................................... 10
Interim condensed statement of changes in consolidated equity...................................................................................................................... 12
Interim condensed consolidated statement of cash flows.................................................................................................................................... 15
Notes to the interim condensed consolidated financial statements ........................................................................................................................ 18
General information .......................................................................................................................................................................................................... 19
Presentation of the Group ............................................................................................................................................................................................... 19
Consolidation policies .....................................................................................................................................................................................................20
Consolidated companies – as at 30.09.2024 .................................................................................................................................................. 20
Subsidiaries ................................................................................................................................................................................................................. 20
Basis of preparation of the interim condensed consolidated financial statements ...................................................................................... 21
Going concern assumption ............................................................................................................................................................................................. 21
Compliance with the International Financial Reporting Standards .................................................................................................................... 21
Amendments to standards or interpretations effective from 1 January 2024, applicable and adopted by the Group ............... 21
Functional currency and presentation currency...................................................................................................................................................... 22
Functional currency and presentation currency .............................................................................................................................................. 22
Transactions and balances ..................................................................................................................................................................................... 22
Assumption of comparability of the financial statements and consistency of accounting policies ......................................................... 23
Changes in accounting policies .............................................................................................................................................................................23
Presentation changes ................................................................................................................................................................................................23
Audit by the registered auditor ..................................................................................................................................................................................... 24
Notes – operating segments of the CD PROJEKT Group .......................................................................................................................................... 25
Operating segments ........................................................................................................................................................................................................ 26
Information on individual operating segments .................................................................................................................................................. 27
Sales revenue – geographical structure* ........................................................................................................................................................... 29
Sales revenue – by type of production ................................................................................................................................................................. 31
Sales revenue – by distribution channel ............................................................................................................................................................. 33
Consolidated income statement by segment for the period from 01.07.2024 to 30.09.2024 ..........................................................35
Consolidated income statement by segment for the period from 01.07.2023 to 30.09.2023* ........................................................ 36
Consolidated income statement by segment for the period from 01.01.2024 to 30.09.2024 ........................................................... 37
Consolidated income statement by segment for the period from 01.01.2023 to 30.09.2023* ..........................................................38
Consolidated statement of financial position by segment as at 30.09.2024 ......................................................................................... 39
Consolidated statement of financial position by segment as at 30.06.2024 ........................................................................................... 41
Consolidated statement of financial position by segment as at 31.12.2023* ........................................................................................... 43
Operating segments ................................................................................................................................................................................................. 45
Description of the Issuer’s major achievements or failures in the third quarter of 2024 by operating segment ........................ 46
Factors affecting the Group’s future performance ........................................................................................................................................... 47
Impact of the political and economic situation in Ukraine on sales during the reporting period ......................................................48
Seasonality or cyclicality of the Group’s operations ....................................................................................................................................... 49
Key customers ............................................................................................................................................................................................................ 50
Notes – other explanatory notes to the interim condensed consolidated financial statements ..................................................................... 51
Note 1. Description of those items affecting assets, liabilities, equity, net profit or loss and cash flows which
are not typical in terms of their type, size and impact .................................................................................................................................... 52
Note 2. Property, plant and equipment ...............................................................................................................................................................53
Note 3. Intangible assets and expenditure on development projects ...................................................................................................... 55
Note 4. Goodwill......................................................................................................................................................................................................... 56
Note 5. Investment properties ............................................................................................................................................................................... 56
Note 6. Inventories .................................................................................................................................................................................................... 58
Note 7. Trade and other receivables ................................................................................................................................................................... 58
Note 8. Other financial assets ................................................................................................................................................................................ 60
Note 9. Prepayments and deferred costs ........................................................................................................................................................... 61
Note 10. Deferred income tax ................................................................................................................................................................................ 62
Note 11. Share capital ................................................................................................................................................................................................ 64
Note 12. Provision for retirement and similar benefits.................................................................................................................................... 64
Note 13. Other provisions ........................................................................................................................................................................................ 65
Note 14. Other liabilities ........................................................................................................................................................................................... 66
Note 15. Deferred income ....................................................................................................................................................................................... 66
Note 16. Information on financial instruments .................................................................................................................................................... 67
5
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 17. Sales revenue.............................................................................................................................................................................................. 70
Note 18. Operating expenses .................................................................................................................................................................................. 71
Note 19. Other operating income and expenses .............................................................................................................................................. 72
Note 20. Finance income and finance costs ...................................................................................................................................................... 73
Note 21. Leases of low-value assets and short-term leases .......................................................................................................................... 74
Note 22. Issuance, redemption and repayment of debt and equity securities ....................................................................................... 74
Note 23. Dividends paid (or declared) and received ....................................................................................................................................... 74
Note 24. Transactions with related entities ........................................................................................................................................................ 74
Note 25. Unpaid loans or defaults on loan agreements in the cases where no corrective measures were adopted
by the balance sheet date ....................................................................................................................................................................................... 77
Note 26. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year ......... 78
Note 27. Changes in the structure of the Group and the Group companies during the reporting period ..................................... 79
Note 28. Agreements that may result in future changes in the proportions of shares held by shareholders
and bondholders ......................................................................................................................................................................................................... 79
Note 29. Tax settlements ........................................................................................................................................................................................ 82
Note 30. Explanations to the condensed consolidated statement of cash flows...................................................................................83
Note 31. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities ............................... 85
Note 32. Post balance sheet events ..................................................................................................................................................................... 87
Additional information ........................................................................................................................................................................................................... 88
Litigation pending ...................................................................................................................................................................................................... 89
Shareholding structure ....................................................................................................................................................................................................90
Parent Company’s shares held by the members of the Management Board and the Supervisory Board ..................................... 91
Reference to published estimates ................................................................................................................................................................................ 91
Interim condensed separate financial statements of CD PROJEKT S.A. ............................................................................................................... 92
Interim condensed separate income statement...................................................................................................................................................... 93
Interim condensed separate statement of comprehensive income ................................................................................................................. 94
Interim condensed separate statement of financial position .............................................................................................................................. 94
Interim condensed separate statement of changes in equity............................................................................................................................. 96
Interim condensed separate statement of cash flows .......................................................................................................................................... 99
Assumption of comparability of the financial statements and consistency of accounting policies ........................................................ 101
Changes in accounting policies ............................................................................................................................................................................ 101
Presentation changes ............................................................................................................................................................................................... 101
Notes to the separate financial statements of CD PROJEKT S.A. ................................................................................................................... 102
A. Deferred tax .......................................................................................................................................................................................................... 102
B. Other provisions ................................................................................................................................................................................................... 104
C. Goodwill .................................................................................................................................................................................................................. 105
D. Business combinations ...................................................................................................................................................................................... 105
E. Dividends paid (or declared) and received .................................................................................................................................................. 105
F. Trade and other receivables ............................................................................................................................................................................ 105
G. Information on financial instruments ............................................................................................................................................................. 108
H. Transactions with related entities .................................................................................................................................................................... 111
Statement of the Management Board of the Parent Company ......................................................................................................................... 113
Approval of the financial statements ......................................................................................................................................................................... 114
Key financial data of the
CD PROJEKT Group
1
7
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed consolidated income statement
Note
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023*
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023*
Sales revenue 227 555 442 682 652 375 767 692
Sales of products 17 180 158 390 534 522 987 628 634
Sales of services 17 1 012 455 2 721 1 041
Sales of goods for resale and materials 17 46 385 51 693 126 667 138 017
Cost of sales of products, services, goods for resale
and materials
63 508 143 167 188 326 251 356
Costs of products and services sold 18 29 297 104 410 94 962 148 101
Cost of goods for resale and materials sold 18 34 211 38 757 93 364 103 255
Gross profit/(loss) on sales 164 047 299 515 464 049 516 336
Selling expenses 18 29 195 66 140 90 073 152 470
Administrative expenses, including: 18 56 890 51 300 162 917 111 904
cost of research projects 18 22 578 4 602 68 496 7 875
Other operating income 19 6 960 7 412 17 357 40 747
Other operating expenses 19 4 316 3 243 7 544 11 556
(Impairment)/reversal of impairment
of financial instruments
4 (5) 2 (1)
Operating profit/(loss) 80 610 186 239 220 874 281 152
Finance income 20 30 409 60 424 63 366 80 005
Finance costs 20 18 637 12 994 16 961 10 793
Profit/(loss) before tax 92 382 233 669 267 279 350 364
Income tax 10 14 275 30 805 19 129 60 383
Net profit/(loss) 78 107 202 864 248 150 289 981
Net profit/(loss) attributable to owners
of CD PROJEKT S.A.
78 107 202 864 248 150 289 981
Net earnings/(loss) per share (in PLN)
Basic for the reporting period 0.78 2.03 2.48 2.89
Diluted for the reporting period 0.78 2.03 2.47 2.89
* restated data
Sales of products, where the CD PROJEKT RED segment reports revenue from licencing its products, mainly internally generated
games, had the largest share in the Group’s Sales revenue in the third quarter of 2024. In the period discussed, the
CD PROJEKT RED segment recognized the following revenue in this item:
a) licence revenue resulting from the sale of Cyberpunk 2077, including the Phantom Liberty expansion;
b) licence revenue resulting from the sale of The Witcher 3: Wild Hunt with Hearts of Stone and Blood and Wine expansions
(including revenue from making the basic version of the game available as part of a PlayStation Plus Extra or Premium
subscriptions on PlayStation 4 and PlayStation 5 consoles);
c) licence revenue relating to CD PROJEKT RED studio’s franchises;
d) revenue relating to games The Witcher 2: Assassins of Kings, GWENT: The Witcher Card Game, The Witcher and
Thronebreaker: The Witcher Tales.
In the comparative period, i.e. the third quarter of 2023, the expansion Cyberpunk 2077: the Phantom Liberty was released and the
Group reported high revenue associated with the release. An absence of a comparable event in the current period contributed to
lower Sales of products on a year-on-year basis.
In Sales of goods for resale and materials, the Group reports mainly revenue from digital distribution of games from external
suppliers to end customers executed via the GOG.COM platform.
8
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
The Cost of products and services sold, where the cost of amortization of expenditure on development projects (primarily the cost
of own games developed in the CD PROJEKT RED segment) is presented, is the first component of the Group’s Cost of products,
services, goods for resale and materials sold. In the third quarter of 2024, the value of this item was mainly affected by amortization
of expenditure on the Cyberpunk 2077, including its expansion Phantom Liberty and amortization of expenditure on the Witcher 3:
Wild Hunt edition for new generation consoles. A lower amortization charge compared with the corresponding period of the prior
year during which the Cyberpunk 2077: Phantom Liberty expansion was released is due to adoption by the CD PROJEKT RED
segment of the reducing balance method amortization rates for products in the Cyberpunk 2077 series, namely 20% of the
expenditure in each of the two quarters following the release which took place in 2023 and 5% per quarter during 2024.
The Cost of goods for resale and materials sold represents mainly the cost of goods for resale and materials sold via the GOG.COM
platform.
In the third quarter of 2024, the largest component of the Selling expenses comprised costs reported under the CD PROJEKT RED
segment relating to the publishing activities, current advertising and promotion of own titles, including salaries and wages of the
internal publishing department teams and external services relating to promotion. A significant decrease in this item in relation to
the comparative period is mainly due to an absence in the period discussed of large promotional campaigns similar to the one
associated with the release of the Cyberpunk 2077: Phantom Liberty in the third quarter of 2023.
The second largest category of Selling expenses represents costs of marketing activities relating to the GOG.COM platform and
the work on the development and processing of sales executed through that platform.
The third major category of Selling expenses in the period discussed represents the cost of maintenance of the titles published in
the CD PROJEKT RED segment. Compared with the third quarter of 2023, the value of maintenance costs was reduced, mainly due
to a significant decrease in the costs relating to the work on Cyberpunk 2077 updates and reduced support for GWENT: The Witcher
Card Game.
Administrative expenses of the CD PROJEKT Group comprise mainly:
a) costs of work on the future games incurred at an initial stage (research phase) preceding the execution of the projects
(development phase) and the start of their capitalization as part of Expenditure on development projects forming part of Non-
current assets, where there was a significant increase in expenditure compared to the comparative period due to an increased
intensity of work on new projects following the completion of the production of the Cyberpunk 2077: Phantom Liberty
expansion. The largest expenditure incurred in the period analysed relates to the following projects: Orion (recognized in this
cost category until August of the current year), Canis Majoris and Hadar;
b) salaries of the administration teams and external services costs classified in this category showing a steady upward trend
accompanying the Group’s growth;
c) the fixed and performance-related part of the remuneration of management boards and top management;
d) the cost associated with the functioning of the Incentive Plans A and B which are based on entitlements to the Parent
Company’s shares.
As regards Other operating income and expenses, the Group recognized mainly revenue obtained by CD PROJEKT resulting from
taking advantage of the tax relief for innovative employees, revenue from the lease of office space (and the accompanying
maintenance costs) in the real estate complex located at Jagiellońska 74 and 76 in Warsaw, income and costs relating to
organization of the Promised Land Art Festival in Łódź and compensations and subsidies received.
In the period discussed, the Group reported a surplus of Finance income over Finance costs. The surplus comprised mainly interest
on bonds and deposits with banks exceeding net foreign exchange losses, including the settlement and measurement of derivative
financial instruments hedging foreign exchange risk.
The effective rate of the Income tax reported in the income statement for the third quarter of 2024 was 15.5% and the consolidated
Net profit of the Group amounted to PLN 78 107 thousand.
9
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed consolidated statement of
comprehensive income
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Net profit /(loss) 78 107 202 864 248 150 289 981
Other comprehensive income subject to reclassification
to gains or losses after specific conditions have been met
1 858 1 128 2 297 (231)
Exchange differences on measurement of foreign
operations
(1 806) 1 607 (1 042) (89)
Measurement of financial instruments at fair value
through other comprehensive income, taking into
account the tax effect
3 664 (479) 3 339 (142)
Other comprehensive income not subject to
reclassification to gains or losses
- - - -
Total comprehensive income 79 965 203 992 250 447 289 750
Total comprehensive income attributable to non-controlling
interests
- - - -
Total comprehensive income attributable to owners
of CD PROJEKT S.A.
79 965 203 992 250 447 289 750
10
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed consolidated statement of financial
position
Note 30.09.2024 30.06.2024 31.12.2023*
NON-CURRENT ASSETS 1 488 558 1 525 159 1 450 685
Property, plant and equipment 2 237 916 218 287 183 038
Intangible assets 3 69 931 70 969 70 058
Expenditure on development projects 3 631 243 586 630 527 182
Investment properties 5 33 106 33 482 34 245
Goodwill 3,4 56 438 56 438 56 438
Shares in non-consolidated subordinated entities 16 37 362 38 793 38 095
Prepayments and deferred costs 9 32 493 37 625 41 906
Other financial assets 8,16 340 243 426 048 455 907
Deferred tax assets 10 49 420 56 481 43 433
Other receivables 7,16 406 406 383
CURRENT ASSETS 1 266 858 1 134 848 1 162 815
Inventories 6 3 248 3 319 3 576
Trade receivables 7,16 81 840 83 928 193 520
Current income tax receivable 9 566 13 308 1 128
Other receivables 7 73 996 60 192 57 741
Prepayments and deferred costs 9 23 309 27 182 27 872
Other financial assets 8,16 531 087 457 094 362 719
Bank deposits over 3 months 16 461 531 340 845 338 205
Cash and cash equivalents 16 82 281 148 980 178 054
TOTAL ASSETS
2 755 416 2 660 007 2 613 500
* restated data
The item Expenditure on development projects, in which the Group recognizes expenditure on the development of new games,
new technologies and other products of a similar nature, incurred and deferred, had the largest share in the value of the Group’s
Non-current assets as at the end of the third quarter of 2024, as well as a significant impact on the increase in the balance thereof.
The increase in the value of the item in question in the period discussed is mainly the result of the CD PROJEKT RED segment
incurring higher expenditure on the production of future products than the depreciation of completed productions. The largest
expenditure incurred in the period analysed related to the following projects: Polaris, Sirius, the anime project, as well as the Orion
project, which started to be capitalized in September of the current year.
Moreover, in non-current assets, the Group recorded an increase in the balance of Property, plant and equipment in the period
discussed. The increase was mainly due to expenditure on construction work at the CD PROJEKT campus in Warsaw (assets under
construction).
The balance of current and non-current Other financial assets consists primarily of domestic and foreign Treasury bonds acquired
as part of credit risk diversification, and the measurement of derivative financial instruments hedging the foreign exchange risk of
foreign bonds.
The consolidated value of current and non-current Prepayments and deferred costs recognized as at the end of the period
analysed was mainly affected by the amount of the so-called minimum guarantees, i.e. advances and prepayments made by
GOG.COM to its suppliers towards fees for the distribution of games offered on the GOG.COM platform, recognized in the
GOG.COM segment. The Group also recognizes, among others, the settlement of subscriptions for utility software under this item.
As at the end of September 2024, the Group’s Other receivables included, in particular, tax receivables and advance payments
made by CD PROJEKT RED in respect of research and development projects, goods for resale and services.
The consolidated balance of Trade receivables as at 30 September 2024 comprises mainly royalties in the CD PROJEKT RED
segment for the end of the third quarter, and a decrease in these receivables compared with the end of the prior year results from
the natural cycle of sales during the year.
The total amount of financial reserves in the form of Cash and cash equivalents, Bank deposits over 3 months and liquid financial
assets in the form of purchased Treasury bonds (recognized in total in current and non-current Other financial assets) held by the
Group as at 30 September 2024 was PLN 1 401 246 thousand.
11
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 30.09.2024 30.06.2024 31.12.2023*
EQUITY 2 570 916 2 484 354 2 403 223
Equity of the shareholders of CD PROJEKT S.A. 2 570 916 2 484 354 2 403 223
Share capital 11,22 99 911 99 911 99 911
Supplementary capital 2 069 034 2 069 034 1 714 604
Share premium 116 700 116 700 116 700
Other reserves 43 665 33 443 23 169
Foreign exchange differences on translation (2 244) (440) (1 202)
Retained earnings / (Accumulated losses) (4 300) (4 300) (30 797)
Net profit (loss) for the period 248 150 170 006 480 838
Non-controlling interests - - -
NON-CURRENT LIABILITIES 23 065 35 890 38 774
Other financial liabilities 16 18 346 18 628 20 038
Other liabilities 14 2 334 2 374 2 494
Deferred income 15 1 822 1 989 2 315
Provision for retirement and similar benefits 12 518 518 518
Other provisions 13 45 12 381 13 409
CURRENT LIABILITIES 161 435 139 763 171 503
Other financial liabilities 16 2 718 3 867 6 884
Trade payables 16 61 006 59 081 58 835
Current income tax liabilities 243 479 462
Other liabilities 14 10 604 10 757 15 201
Deferred income 15 14 692 13 823 13 170
Provision for retirement and similar benefits 12 8 818 9 428 6 743
Other provisions 13 63 354 42 328 70 208
TOTAL EQUITY AND LIABILITIES 2 755 416 2 660 007 2 613 500
* restated data
As at the end of the third quarter of 2024, the Equity of the CD PROJEKT Group amounted to PLN 2 570 916 thousand and was
PLN 86 562 thousand higher than as at 30 June 2024, which was mainly due to the net profit generated in the period discussed.
In current and non-current Other financial liabilities, the Group recognizes mainly liabilities in respect of the perpetual usufruct of
land at the Jagiellońska 74 and Jagiellońska 76 complexes in Warsaw and liabilities in respect of the concluded agreements for the
lease of office space.
An increase in the balance of the Group’s Trade payables is due primarily to the current operations of the CD PROJEKT RED and
GOG.COM segments (mainly payables relating to royalties in respect of sales realized by the platform in the current period).
The sum of the Group’s Other liabilities in the period discussed comprised mainly current tax liabilities (VAT, PIT, withholding tax)
and social security liabilities.
The balance of the CD PROJEKT Group’s Deferred income as at the end of September 2024 comprises mainly the following:
a) CD PROJEKT RED – sales relating to future periods – the so-called minimum guarantees, i.e. advances towards royalties
related to sales in future periods, received or receivable from publishers and distribution partners;
b) GOG.COM – deferred income settlements with the Company’s customers (including the Store credit and Wallet granted);
c) CD PROJEKT RED and GOG.COM – deferred income concerning subsidies;
d) GOG.COM – sales relating to future periods – the value of pre-orders for games with a release date in future periods, placed
by customers.
The balance of the current and non-current Provision for retirement and similar benefits includes primarily a holiday pay provision
and provisions for retirement and disability benefits.
Under Other provisions, the Group presents provisions for costs relating to cooperation with external counterparties and provisions
for performance-related remuneration. An increase in the balance of Other provisions in the third quarter of 2024 related mainly to
the CD PROJEKT RED segment and was mainly due to provisions recognized for performance-related remuneration for the current
period.
12
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed statement of changes in consolidated equity
Share
capital
Supplementary
capital
Share
premium
Treasury
shares
Other
reserves
Foreign
exchange
differences on
translation
Retained
earnings /
(Accumulated
losses)
Net profit
(loss) for the
period
Equity of the
shareholders
of
CD PROJEKT
S.A.
Non-controlling
interests
Total equity
01.01.2024 – 30.09.2024
Equity
as at 01.01.2024
99 911 1 714 604 116 700 - 23 169 (1 202) 450 308 - 2 403 490 - 2 403 490
Corrections of errors - - - - - - (267) - (267) - (267)
Equity, as adjusted 99 911 1 714 604 116 700 - 23 169 (1 202) 450 041 - 2 403 223 - 2 403 223
Costs of the incentive
plan
- - - - 17 157 - - - 17 157 - 17 157
Payment of dividend - - - - - - (99 911) - (99 911) - (99 911)
Appropriation of the
net profit/offset of loss
- 354 430 - - - - (354 430) - - - -
Total comprehensive
income
- - - - 3 339 (1 042) - 248 150 250 447 - 250 447
Equity
as at 30.09.2024
99 911 2 069 034 116 700 - 43 665 (2 244) (4 300) 248 150 2 570 916 - 2 570 916
13
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Share
capital
Supplementary
capital
Share
premium
Treasury
shares
Other
reserves
Foreign
exchange
differences on
translation
Retained
earnings /
(Accumulated
losses)
Net profit
(loss) for the
period
Equity of the
shareholders
of
CD PROJEKT
S.A.
Non-controlling
interests
Total equity
01.01.2023 – 31.12.2023*
Equity
as at 01.01.2023
100 771 1 567 325 116 700 (99 993) 2 255 1 904 344 442 - 2 033 404 - 2 033 404
Corrections of errors - - - - - - (1 938) - (1 938) - (1 938)
Equity, as adjusted 100 771 1 567 325 116 700 (99 993) 2 255 1 904 342 504 - 2 031 466 - 2 031 466
Costs of the incentive
plan
- - - - 16 776 - - - 16 776 - 16 776
Redemption of
Treasury shares
(860) (99 133) - 99 993 - - - - - - -
Payment of dividend - - - - - - (99 911) - (99 911) - (99 911)
Retained earnings /
(Accumulated losses)
of the acquired entity
- - - - - - (26 978) - (26 978) - (26 978)
Appropriation of the
net profit/offset of loss
- 246 412 - - - - (246 412) - - - -
Total comprehensive
income
- - - - 4 138 (3 106) - 480 838 481 870 - 481 870
Equity
as at 31.12.2023
99 911 1 714 604 116 700 - 23 169 (1 202) (30 797) 480 838 2 403 223 - 2 403 223
* restated data
14
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Share
capital
Supplementary
capital
Share
premium
Treasury
shares
Other
reserves
Foreign
exchange
differences on
translation
Retained
earnings /
(Accumulated
losses)
Net profit
(loss) for the
period
Equity of the
shareholders
of
CD PROJEKT
S.A.
Non-controlling
interests
Total equity
01.01.2023 – 30.09.2023
Equity
as at 01.01.2023
100 771 1 567 325 116 700 (99 993) 2 255 1 904 344 442 - 2 033 404 - 2 033 404
Corrections of errors - - - - - - (1 938) - (1 938) - (1 938)
Equity, as adjusted 100 771 1 567 325 116 700 (99 993) 2 255 1 904 342 504 - 2 031 466 - 2 031 466
Costs of the incentive
plan
- - - - 13 816 - - - 13 816 - 13 816
Redemption of
Treasury shares
(860) (99 133) - 99 993 - - - - - - -
Payment of dividend - - - - - - (99 911) - (99 911) - (99 911)
Retained earnings /
(Accumulated losses)
of the acquired entity
- - - - - - (26 978) - (26 978) - (26 978)
Appropriation of the
net profit/offset of loss
- 246 412 - - - - (246 412) - - - -
Total comprehensive
income
- - - - (141) (89) - 289 981 289 751 - 289 751
Equity
as at 30.09.2023
99 911 1 714 604 116 700 - 15 930 1 815 (30 797) 289 981 2 208 144 - 2 208 144
15
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed consolidated statement of cash flows
Note
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
OPERATING ACTIVITIES
Net profit/(loss) 78 107 202 864 248 150 289 981
Total adjustments: 30 26 715 (111 979) 128 893 (85 935)
Depreciation and amortization of property, plant
and equipment, intangible assets, expenditure on
development projects and investment properties
3 883 3 271 10 966 9 942
Amortization of development projects recognized
as cost of goods sold
26 372 93 935 79 107 137 148
Foreign exchange (gains)/losses 13 750 (14 819) 5 579 4 024
Interest and shares in profits (16 238) (10 466) (50 149) (35 831)
(Gains)/losses on investing activities (10 923) (14 501) (5 073) (57 543)
Increase/(Decrease) in provisions 4 318 36 413 (24 438) (11 526)
(Increase)/Decrease in inventories 70 655 328 5 238
(Increase)/Decrease in receivables (13 015) (205 052) 93 766 (126 129)
Increase/(Decrease) in liabilities, excluding loans
and borrowings
2 233 17 197 (14 774) 1 768
Change in other assets and liabilities 9 648 (23 916) 14 824 (32 028)
Other adjustments 6 617 5 304 18 757 19 002
Cash from operating activities 104 822 90 885 377 043 204 046
Income tax expense 12 410 21 150 13 379 34 769
Withholding tax paid abroad 1 865 9 655 5 750 25 614
Income tax (paid)/refunded (1 851) 1 649 (28 027) (19 661)
Net cash from operating activities 117 246 123 339 368 145 244 768
16
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
INVESTING ACTIVITIES
Inflows 232 549 144 830 724 295 565 856
Sale of intangible assets and property, plant
and equipment
15 129 182 642
Repayment of loans granted 325 1 002 617 1 002
Expiry of bank deposits over 3 months 167 391 124 680 593 005 454 650
Redemption of bonds 47 487 - 76 840 56 411
Interest on bonds 4 391 1 637 11 927 8 116
Interest received on deposits 6 750 5 912 22 615 23 249
Inflows from execution of forward contracts 6 128 11 470 18 911 21 743
Other inflows from investing activities 62 - 198 43
Outflows 415 597 180 594 1 085 341 749 824
Acquisition of intangible assets and property, plant
and equipment
26 802 10 310 63 530 40 004
Expenditure on development projects 64 429 64 831 171 568 227 448
Expenditure on intangible assets 13 345 224 724
Acquisition of investment properties and
capitalization of expenditure
11 57 22 155
Loans granted - - - 4 215
Purchase of shares in a subsidiary - - 3 141 3 488
Placement of bank deposits over 3 months 292 331 70 805 718 645 380 570
Purchase of bonds and cost of their purchase 32 011 34 246 128 211 93 220
Net cash from investing activities (183 048) (35 764) (361 046) (183 968)
FINANCING ACTIVITIES
Inflows 6 1 15 31
Settlement of lease receivables 5 1 12 31
Interest received 1 - 3 -
Outflows 903 680 102 887 102 426
Dividends and other distributions to shareholders - - 99 911 99 911
Payment of lease liabilities 715 480 2 378 1 920
Interest received 188 200 598 595
Net cash from financing activities (897) (679) (102 872) (102 395)
Net increase/(decrease) in cash and cash
equivalents
(66 699) 86 896 (95 773) (41 595)
Change in cash and cash equivalents in the balance
sheet
(66 699) 86 896 (95 773) (41 595)
Cash and cash equivalents as at the beginning of
the period
148 980 149 336 178 054 277 827
Cash and cash equivalents as at the end of the
period
82 281 236 232 82 281 236 232
17
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
In the third quarter of 2024, the CD PROJEKT Group reported positive Net cash from operating activities of PLN 117 246 thousand.
The consolidated net profit was adjusted for:
a) Non-cash items (an increase in total):
Amortization and depreciation (an increase);
Amortization of development projects recognized as cost of sales (an increase) which comprises amortization of
expenditure on development projects related to Cyberpunk 2077 together with the Phantom Liberty expansion and
The Witcher 3: Wild Hunt Complete Edition for the next generation Xbox Series X|S and PlayStation 5 consoles;
Foreign exchange gains/(losses), an increase resulting mainly from elimination of foreign exchange gains/(losses)
on remeasurement of foreign Treasury bonds recognized in the income statement and bank deposits over 3 months
held by the CD PROJEKT RED segment;
(Increase)/decrease in provisions (an increase);
Other adjustments, an increase resulting mainly from the elimination of accounting for costs of the incentive plan.
b) Items related to changes in current assets and current liabilities (a decrease in total):
(Increase)/decrease in inventories, an increase in the balance of cash flows as a result of a drop in inventories;
(Increase)/Decrease in receivables, a decrease in net cash flows resulting mainly from an increase in the balance
of the Group’s current receivables and adjustments for the income tax and withholding tax paid abroad;
Increase/(Decrease) in liabilities, excluding loans and borrowings (an increase);
Change in other assets and liabilities, an increase in net cash flows resulting mainly from a decrease in the balance
of prepayments and deferred costs (a reduction of the so-called minimum guarantees in GOG.COM) and an increase
in the balance of deferred income.
c) Items reported in other sections of the statement of cash flows – Interest and shares in profits and (Gains)/losses on
investing activities which resulted in a decrease in net cash flows from operating activities;
d) A difference between the corporate income tax recognized in the income statement and the tax actually paid in the third
quarter of 2024, taking into account settlements related to withholding tax.
The negative balance of Net cash flows from investing activities during the third quarter of 2024 was mainly due to a surplus of
the total value of new investments in bank deposits and Treasury bonds over the balance of deposits expired and bonds redeemed
in the period discussed, and negative cash flows relating to investments in assets, mainly in Expenditure on development projects
(i.e. the work conducted on new projects) and in Property, plant and equipment.
In the third quarter of 2024, the CD PROJEKT Group did not generate any material Net cash flows from financing activities.
In total, in the third quarter of 2024, the CD PROJEKT Group generated Net cash outflows of PLN 66 699 thousand; at the same
time, total cash and cash equivalents, bank deposits over 3 months and bonds purchased increased by PLN 35 924 thousand.
Notes to the interim condensed
consolidated financial statements
2
19
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
General information
Name of reporting entity:
CD PROJEKT S.A.
(there have been no changes in the name of the reporting entity since the end of
the prior reporting period)
Legal form: a joint stock company (spółka akcyjna)
Registered office: Jagiellońska 74, 03-301 Warsaw
Country of registration: Poland
Core activities:
CD PROJEKT S.A. is the holding company of the CD PROJEKT Group which
operates in the CD PROJEKT RED and GOG.COM segments.
Principal place of business: Warsaw
Registration body:
District Court for the Capital City of Warsaw in Warsaw, 14th Business Department
of the National Court Register
Statistical number REGON: 492707333
Tax identification number NIP: 7342867148
Number in the BDO register
(national waste management database):
000141053
Duration of the Group: unspecified
Name of parent entity: CD PROJEKT S.A.
Name of the ultimate parent of the
Group:
CD PROJEKT S.A.
Presentation of the Group
Subsidiaries
CD PROJEKT S.A.
GOG sp. z o.o. CD PROJEKT RED Inc.
The Molasses Flood LLC
CD PROJEKT SILVER Inc.
CD PROJEKT RED
Vancouver Studio Ltd.
20
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidation policies
Consolidated companies – as at 30.09.2024
% share in capital % share of voting rights consolidation method
CD PROJEKT S.A. parent entity - -
GOG sp. z o.o. 100% 100% acquisition accounting
CD PROJEKT RED Inc. 100% 100% acquisition accounting
CD PROJEKT RED Vancouver Studio Ltd. 100% 100% not consolidated
The Molasses Flood LLC 81.82% 81.82% not consolidated
CD PROJEKT SILVER Inc. 100% 100% not consolidated
In accordance with the accounting policy adopted by the Group, the parent entity does not have to consolidate a subsidiary using
the acquisition accounting method if:
the subsidiary’s share in the parent entity’s total assets does not exceed 3%;
the subsidiary’s share in the parent entity’s sales revenue and financial transactions does not exceed 3%,
where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken
into account when determining whether the said thresholds have been exceeded.
In total, the financial data of the subsidiaries eliminated from consolidation may not exceed:
6% of the share in the parent entity’s total assets;
6% of the share in the parent entity’s sales revenue and financial transactions,
where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken
into account when determining whether the said thresholds have been exceeded.
Subsidiaries
Subsidiaries are all and any entities over which the Group has control which manifests itself by, simultaneously:
having power, consisting in having substantive rights that give the Group the current ability to manage the relevant activities,
i.e. those activities which significantly affect the entity’s financial results;
being exposed or having rights to variable returns, consisting in having the potential to change the financial results of the
Group depending on the results of the subsidiary;
having the ability to use the power exercised to affect its returns from the subsidiary by using its power in order to affect the
financial results attributable to the Group resulting from the involvement in the subsidiary.
Subsidiaries are fully consolidated from the date on which the Group assumed control over them. They cease to be consolidated
from the date that control ceases.
Revenue and costs, receivables and payables and unrealized gains on transactions between Group companies are eliminated for
the purposes of the consolidated financial statements. Unrealized losses are also eliminated, unless the transaction is an impairment
indicator of the asset transferred. The accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the accounting policies adopted by the Group.
21
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Basis of preparation of the interim condensed
consolidated financial statements
These interim condensed consolidated financial statements have been prepared in accordance with the International Accounting
Standard No. 34 Interim Financial Reporting endorsed by the EU (“IAS 34”).
The interim condensed consolidated financial statements do not comprise all the information and disclosures which are required in
annual financial statements and should be read jointly with the consolidated financial statements of the Group for the year ended
31 December 2023 approved for publication on 28 March 2024.
Going concern assumption
These interim condensed consolidated financial statements have been prepared on the basis of the assumption that the Group and
the Parent Company will continue in operation as going concerns in the foreseeable future, i.e. in the period of at least 12 months
after the balance sheet date.
As at the date of signing these consolidated financial statements, the Management Board of the Parent Company has not identified
any facts or circumstances which would indicate any threats to the Group continuing in operation as a going concern for a period
of 12 months after the end of the reporting period as a result of intended or forced discontinuation or significant curtailment of its
existing operations.
By the date of preparation of the consolidated financial statements for the period from 1 July to 30 September 2024, the
Management Board of the Parent Company did not become aware of any events which should have been but were not recognized
in the accounting records for the reporting period. At the same time, no significant prior year events have been disclosed in these
consolidated financial statements.
Compliance with the International Financial Reporting
Standards
These interim condensed consolidated financial statements have been prepared in accordance with the International Accounting
Standard No. 34 Interim Financial Reporting and in accordance with the relevant International Financial Reporting Standards (IFRS)
applicable to interim financial reporting, approved by the International Accounting Standards Board (IASB) and the International
Financial Reporting Interpretations Committee (IFRIC) as applicable as at 30 September 2024.
The Group intends to apply changes to IFRS published but not yet binding by the date of publication of these interim condensed
consolidated financial statements in accordance with their effective dates. Information on standards and interpretations adopted
for the first time, early adoption of the standards, standards effective on or after 1 January 2024 and the assessment of the impact
of changes to IFRS on the future consolidated financial statements of the Group were presented in the second part of the
Consolidated Financial Statements for 2023.
Amendments to standards or interpretations effective from 1 January 2024,
applicable and adopted by the Group
Amendments to IAS 1 Presentation of financial statements: Classification of liabilities as current or non-current - applicable to
reporting periods beginning on or after 1 January 2024;
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback - applicable to reporting periods beginning on or after
1 January 2024;
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures - Supplier Finance Arrangements
- applicable to reporting periods beginning on or after 1 January 2024.
The amendments do not have a material impact on the accounting policies adopted by the Group with regard to the Group’s
operations or its financial results.
22
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Standards published and endorsed by the EU which are not yet effective and their impact on the
Group’s financial statements
The Management Board analysed the impact of the application of the new standards on future financial statements. When approving
these financial statements, the Group did not apply the following standards, amendments and interpretations published and
endorsed by the EU, but not yet effective:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability- applicable to reporting
periods beginning on or after 1 January 2025;
The Group does not expect the introduction of these amendments to have a material impact on the accounting policies adopted
by the Group with regard to the Group’s operations or its financial results.
Standards and interpretations adopted by the IASB but not yet endorsed by the EU
When approving these financial statements, the Group did not apply the following standards, amendments and interpretations
which have not yet been endorsed by the EU:
IFRS 18 Presentation and Disclosure in Financial Statements - applicable to reporting periods beginning on or after 1 January
2027;
IFRS 19 Subsidiaries without Public Accountability: Disclosures - applicable to reporting periods beginning on or after 1 January
2027;
Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10, IFRS 7 as part of Annual Improvements Volume 11 - applicable to reporting
periods beginning on or after 1 January 2026;
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures - amendments to classification and
measurement - applicable to reporting periods beginning on or after 1 January 2026.
The Group is analysing the estimated impact of the standards and amendments listed above on the Group’s financial statements.
Functional currency and presentation currency
Functional currency and presentation currency
The functional currency of the Group and the Parent Company and the reporting currency of these financial statements is the Polish
zloty (PLN). Unless stated otherwise, all data is presented in thousands of Polish zlotys (PLN ‘000).
Transactions and balances
Transactions expressed in foreign currencies are translated into the functional currency based on the exchange rate as at the
transaction date. Foreign exchange gains and losses on the settlement of these transactions and the translation of monetary assets
and liabilities as at the balance sheet date are recognized in the income statement, unless they are deferred in equity, when they
qualify for recognition as cash flow hedges and hedges of a net investment.
23
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Assumption of comparability of the financial
statements and consistency of accounting policies
The accounting policies applied in these interim condensed consolidated financial statements, material judgments made by the
Management Board with regard to the accounting policies applied by the Group and the main sources of estimating uncertainties
are consistent, in all material respects, with the policies adopted for preparing the annual consolidated financial statements of the
CD PROJEKT Group for 2023, with the exception of changes in the accounting policies and presentation changes described below.
These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial
statements for the year ended 31 December 2023.
Changes in accounting policies
The accounting policies applied in these consolidated financial statements, material judgements made by the Management Board
with regard to the accounting policies applied by the Group and the main sources of estimating uncertainties are consistent, in all
material respects, with the policies adopted for preparing the annual consolidated financial statements of the CD PROJEKT Group
for 2023, with the exception of changes in the accounting policies, changes related to the consolidated companies and presentation
changes described below.
In accordance with the accounting policies adopted by the Group in 2024, the parent entity does not have to consolidate
a subsidiary using the acquisition accounting method if:
the subsidiary’s share in the parent entity’s total assets does not exceed 3%;
the subsidiary’s share in the parent entity’s sales revenue and financial transactions does not exceed 3%,
where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken
into account when determining whether the said thresholds have been exceeded.
In total, the financial data of the subsidiaries eliminated from consolidation may not exceed:
6% of the share in the parent entity’s total assets;
6% of the share in the parent entity’s sales revenue and financial transactions,
where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken
into account when determining whether the said thresholds have been exceeded.
Presentation changes
In these interim condensed consolidated financial statements for the period from 1 July to 30 September 2024, changes were made
in the presentation of selected financial data. In order to ensure comparability of the financial data, presentation of the data for the
periods from 1 July to 30 September 2023, from 1 January to 30 September 2023 and as at 31 December 2023 was changed in the
reporting period. The data are presented after the following adjustments:
In the statement of financial position as at 31 December 2023, provisions for holiday pay were included. Consequently, the
following items changed:
- Deferred income tax asset – an increase of PLN 62 thousand;
- Net profit (loss) for the period – a decrease of PLN 267 thousand;
- Provision for retirement and similar benefits – an increase of PLN 329 thousand.
The change affected the Net profit or loss and Equity.
In the income statement for the period from 1 July to 30 September 2023, the Group began presenting costs of research
projects as a separate item of Administrative expenses.
The change is of a purely presentational nature and has not affected the Net profit or loss and Equity.
24
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Audit by the registered auditor
These interim condensed consolidated financial statements, including the selected elements of the interim condensed separate
financial statements, were not audited or reviewed by an independent registered auditor.
Notes – operating segments of
the CD PROJEKT Group
3
26
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Operating segments
Presentation of the financial statements taking into account operating segments
The scope of the financial information provided on the Group’s operating segments is consistent with the requirements of IFRS 8.
The segments’ results are determined based on their net profits.
Description of differences in the basis for determination of segments and the profit or loss of a
segment compared with the last annual consolidated financial statements
The Group did not make any changes in determining segments or in the measurement of the profits or losses of the individual
segments in relation to the financial statements for the year ended 31 December 2023.
There are no differences between the measurement of the assets, liabilities, profits and losses of the Group’s reporting segments.
27
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Information on individual operating segments
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.07.2024 – 30.09.2024
Sales revenue 181 114 49 341 (2 900) 227 555
from external customers 178 214 49 341 - 227 555
between segments 2 900 - (2 900) -
Amortization and depreciation 3 451 547 (115) 3 883
Interest income 15 988 536 (1) 16 523
Interest expense 206 42 (26) 222
Net profit/(loss) of the segment 79 127 (1 000) (20) 78 107
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.07.2023 – 30.09.2023
Sales revenue 382 042 83 700 (23 060) 442 682
from external customers 358 982 83 700 - 442 682
between segments 23 060 - (23 060) -
Amortization and depreciation 2 997 398 (124) 3 271
Interest income 10 442 224 - 10 666
Interest expense 200 40 (40) 200
Net profit/(loss) of the segment 195 256 7 590 18 202 864
28
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.01.2024 – 30.09.2024
Sales revenue 526 068 137 011 (10 704) 652 375
from external customers 515 364 137 011 - 652 375
between segments 10 704 - (10 704) -
Amortization and depreciation 10 094 1 391 (519) 10 966
Interest income 49 656 1 088 - 50 744
Interest expense 628 211 (86) 753
Net profit/(loss) of the segment 247 996 32 122 248 150
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.01.2023 – 30.09.2023
Sales revenue 626 109 168 222 (26 639) 767 692
from external customers 599 538 168 154 - 767 692
between segments 26 571 68 (26 639) -
Amortization and depreciation 9 089 1 239 (386) 9 942
Interest income 36 073 370 - 36 443
Interest expense 642 333 (128) 847
Net profit/(loss) of the segment 282 521 7 449 11 289 981
29
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Sales revenue – geographical structure*
Continuing operations
Consolidation
eliminations
Total continuing operations
CD PROJEKT RED GOG.COM in PLN in %
01.07.2024 – 30.09.2024
Domestic sales 9 323 3 538 (2 900) 9 961 4.4%
Export sales, including: 171 791 45 803 - 217 594 95.6%
Europe 19 329 20 269 - 39 598 17.4%
North America 148 360 20 545 - 168 905 74.2%
South America - 1 182 - 1 182 0.5%
Asia 3 604 1 830 - 5 434 2.4%
Australia 498 1 844 - 2 342 1.0%
Africa - 133 - 133 0.1%
Total
181 114 49 341 (2 900) 227 555 100%
Continuing operations
Consolidation
eliminations
Total continuing operations
CD PROJEKT RED GOG.COM in PLN in %
01.07.2023 – 30.09.2023
Domestic sales 25 833 6 599 (23 060) 9 372 2.1%
Export sales, including: 356 209 77 101 - 433 310 97.9%
Europe 37 224 39 114 - 76 338 17.2%
North America 300 832 28 996 - 329 828 74.5%
South America - 1 577 - 1 577 0.4%
Asia 17 902 4 368 - 22 270 5.0%
Australia 251 2 791 - 3 042 0.7%
Africa - 255 - 255 0.1%
Total 382 042 83 700 (23 060) 442 682 100%
30
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Continuing operations
Consolidation
eliminations
Total continuing operations
CD PROJEKT RED GOG.COM in PLN in %
01.01.2024 – 30.09.2024
Domestic sales 24 202 10 675 (10 704) 24 173 3.7%
Export sales, including: 501 866 126 336 - 628 202 96.3%
Europe 63 252 57 788 - 121 040 18.6%
North America 410 785 55 146 - 465 931 71.4%
South America - 3 331 - 3 331 0.5%
Asia 26 600 4 742 - 31 342 4.8%
Australia 1 229 4 946 - 6 175 0.9%
Africa - 383 - 383 0.1%
Total 526 068 137 011 (10 704) 652 375 100%
Continuing operations
Consolidation
eliminations
Total continuing operations
CD PROJEKT RED GOG.COM in PLN in %
01.01.2023 – 30.09.2023
.
Domestic sales 36 615 13 262 (26 639) 23 238 3.0%
Export sales, including: 589 494 154 960 - 744 454 97.0%
Europe 73 218 74 099 - 147 317 19.2%
North America 476 708 63 734 - 540 442 70.4%
South America - 3 323 - 3 323 0.4%
Asia 39 036 7 399 - 46 435 6.1%
Australia 532 5 917 - 6 449 0.8%
Africa - 488 - 488 0.1%
Total 626 109 168 222 (26 639) 767 692 100%
* The data presented based on the location of the registered office of the customers of the Group companies: for CD PROJEKT S.A. – the distributors, and for retail sales of GOG Sp. z o.o. and
CD PROJEKT RED Inc. – end customers.
31
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Sales revenue – by type of production
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.07.2024 – 30.09.2024
Own production 178 906 - 1 252 180 158
Third party production 1 447 49 063 (4 125) 46 385
Other revenue 761 278 (27) 1 012
Total 181 114 49 341 (2 900) 227 555
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.07.2023 – 30.09.2023
Own production 380 646 - 9 888 390 534
Third party production 1 205 83 393 (32 905) 51 693
Other revenue 191 307 (43) 455
Total 382 042 83 700 (23 060) 442 682
32
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.01.2024 – 30.09.2024
Own production 518 573 - 4 414 522 987
Third party production 5 239 136 427 (14 999) 126 667
Other revenue 2 256 584 (119) 2 721
Total 526 068 137 011 (10 704) 652 375
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.01.2023 – 30.09.2023
Own production 617 257 - 11 377 628 634
Third party production 8 368 167 476 (37 827) 138 017
Other revenue 484 746 (189) 1 041
Total 626 109 168 222 (26 639) 767 692
33
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Sales revenue – by distribution channel
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.07.2024 – 30.09.2024
Games - box issues 4 088 - - 4 088
Games - digital issues 167 758 49 063 (2 873) 213 948
Other revenue 9 268 278 (27) 9 519
Total 181 114 49 341 (2 900) 227 555
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.07.2023 – 30.09.2023
Games - box issues 10 364 - - 10 364
Games - digital issues 368 282 83 393 (23 016) 428 659
Other revenue 3 396 307 (44) 3 659
Total 382 042 83 700 (23 060) 442 682
34
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.01.2024 – 30.09.2024
Games - box issues 25 161 - - 25 161
Games - digital issues 469 343 136 427 (10 584) 595 186
Other revenue 31 564 584 (120) 32 028
Total 526 068 137 011 (10 704) 652 375
Continuing operations
Consolidation eliminations Total continuing operations
CD PROJEKT RED GOG.COM
01.01.2023 – 30.09.2023
Games - box issues 32 306 - - 32 306
Games - digital issues 575 855 167 476 (26 451) 716 880
Other revenue 17 948 746 (188) 18 506
Total 626 109 168 222 (26 639) 767 692
35
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated income statement by segment for the period from 01.07.2024 to 30.09.2024
CD PROJEKT RED GOG.COM Consolidation eliminations Total
Sales revenue 181 114 49 341 (2 900) 227 555
Sales of products 178 906 - 1 252 180 158
Sales of services 761 278 (27) 1 012
Sales of goods for resale and materials 1 447 49 063 (4 125) 46 385
Cost of sales of products, services, goods for resale and materials 30 480 35 950 (2 922) 63 508
Costs of products and services sold 29 347 - (50) 29 297
Cost of goods for resale and materials sold 1 133 35 950 (2 872) 34 211
Gross profit/(loss) on sales 150 634 13 391 22 164 047
Selling expenses 17 780 11 309 106 29 195
Administrative expenses, including: 54 242 2 853 (205) 56 890
cost of research projects 22 578 - - 22 578
Other operating income 7 127 188 (355) 6 960
Other operating expenses 4 359 128 (171) 4 316
(Impairment)/reversal of impairment
of financial instruments
4 - - 4
Operating profit/(loss) 81 384 (711) (63) 80 610
Finance income 29 555 855 (1) 30 409
Finance costs 17 316 1 347 (26) 18 637
Profit/(loss) before tax 93 623 (1 203) (38) 92 382
Income tax 14 496 (203) (18) 14 275
Net profit /(loss) 79 127 (1 000) (20) 78 107
Net profit/(loss) attributable to owners of CD PROJEKT S.A. 79 127 (1 000) (20) 78 107
36
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated income statement by segment for the period from 01.07.2023 to 30.09.2023*
CD PROJEKT RED GOG.COM Consolidation eliminations Total
Sales revenue 382 042 83 700 (23 060) 442 682
Sales of products 380 646 - 9 888 390 534
Sales of services 191 307 (43) 455
Sales of goods for resale and materials 1 205 83 393 (32 905) 51 693
Cost of sales of products, services, goods for resale and materials 105 689 60 579 (23 101) 143 167
Costs of products and services sold 104 494 - (84) 104 410
Cost of goods for resale and materials sold 1 195 60 579 (23 017) 38 757
Gross profit/(loss) on sales 276 353 23 121 41 299 515
Selling expenses 53 275 12 883 (18) 66 140
Administrative expenses, including: 49 031 2 119 150 51 300
cost of research projects 4 602 - - 4 602
Other operating income 7 578 449 (615) 7 412
Other operating expenses 3 555 372 (684) 3 243
(Impairment)/reversal of impairment
of financial instruments
(5) - - (5)
Operating profit/(loss) 178 065 8 196 (22) 186 239
Finance income 57 186 3 238 - 60 424
Finance costs 10 015 3 019 (40) 12 994
Profit/(loss) before tax 225 236 8 415 18 233 669
Income tax 29 980 825 - 30 805
Net profit /(loss) 195 256 7 590 18 202 864
Net profit/(loss) attributable to owners of CD PROJEKT S.A. 195 256 7 590 18 202 864
* restated data
37
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated income statement by segment for the period from 01.01.2024 to 30.09.2024
CD PROJEKT RED GOG.COM Consolidation eliminations Total
Sales revenue 526 068 137 011 (10 704) 652 375
Sales of products 518 573 - 4 414 522 987
Sales of services 2 256 584 (119) 2 721
Sales of goods for resale and materials 5 239 136 427 (14 999) 126 667
Cost of sales of products, services, goods for resale and materials 99 479 99 485 (10 638) 188 326
Costs of products and services sold 95 017 - (55) 94 962
Cost of goods for resale and materials sold 4 462 99 485 (10 583) 93 364
Gross profit/(loss) on sales 426 589 37 526 (66) 464 049
Selling expenses 58 859 31 167 47 90 073
Administrative expenses, including: 155 450 7 717 (250) 162 917
cost of research projects 68 496 - - 68 496
Other operating income 16 118 2 270 (1 031) 17 357
Other operating expenses 7 811 649 (916) 7 544
(Impairment)/reversal of impairment
of financial instruments
2 - - 2
Operating profit/(loss) 220 589 263 22 220 874
Finance income 59 089 4 277 - 63 366
Finance costs 12 587 4 460 (86) 16 961
Profit/(loss) before tax 267 091 80 108 267 279
Income tax 19 095 48 (14) 19 129
Net profit /(loss) 247 996 32 122 248 150
Net profit/(loss) attributable to owners of CD PROJEKT S.A. 247 996 32 122 248 150
38
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated income statement by segment for the period from 01.01.2023 to 30.09.2023*
CD PROJEKT RED GOG.COM Consolidation eliminations Total
Sales revenue 626 109 168 222 (26 639) 767 692
Sales of products 617 257 - 11 377 628 634
Sales of services 484 746 (189) 1 041
Sales of goods for resale and materials 8 368 167 476 (37 827) 138 017
Cost of sales of products, services, goods for resale and materials 157 588 120 331 (26 563) 251 356
Costs of products and services sold 148 210 4 (113) 148 101
Cost of goods for resale and materials sold 9 378 120 327 (26 450) 103 255
Gross profit/(loss) on sales 468 521 47 891 (76) 516 336
Selling expenses 119 431 33 067 (28) 152 470
Administrative expenses, including: 105 926 6 045 (67) 111 904
cost of research projects 7 875 - - 7 875
Other operating income 41 294 1 140 (1 687) 40 747
Other operating expenses 12 160 1 001 (1 605) 11 556
(Impairment)/reversal of impairment
of financial instruments
(1) - - (1)
Operating profit/(loss) 272 297 8 918 (63) 281 152
Finance income 75 986 4 019 - 80 005
Finance costs 6 325 4 596 (128) 10 793
Profit/(loss) before tax 341 958 8 341 65 350 364
Income tax 59 437 892 54 60 383
Net profit /(loss) 282 521 7 449 11 289 981
Net profit/(loss) attributable to owners of CD PROJEKT S.A. 282 521 7 449 11 289 981
* restated data
39
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated statement of financial position by segment as at 30.09.2024
CD PROJEKT RED GOG.COM Consolidation eliminations Total
NON-CURRENT ASSETS 1 466 300 39 014 (16 756) 1 488 558
Property, plant and equipment 236 995 1 955 (1 034) 237 916
Intangible assets 66 530 3 749 (348) 69 931
Expenditure on development projects 627 859 3 137 247 631 243
Investment properties 33 106 - - 33 106
Goodwill 56 438 - - 56 438
Investments in subordinated entities 15 621 - (15 621) -
Shares in non-consolidated subordinated entities 37 362 - - 37 362
Prepayments and deferred costs 4 222 28 271 - 32 493
Other financial assets 340 243 - - 340 243
Deferred tax assets 47 518 1 902 - 49 420
Other receivables 406 - - 406
CURRENT ASSETS 1 210 497 59 297 (2 936) 1 266 858
Inventories 3 248 - - 3 248
Trade receivables 80 437 4 339 (2 936) 81 840
Current income tax receivable 9 566 - - 9 566
Other receivables 72 511 1 485 - 73 996
Prepayments and deferred costs 9 622 13 687 - 23 309
Other financial assets 531 087 - - 531 087
Bank deposits over 3 months 461 531 - - 461 531
Cash and cash equivalents 42 495 39 786 - 82 281
TOTAL ASSETS 2 676 797 98 311 (19 692) 2 755 416
40
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
CD PROJEKT RED GOG.COM Consolidation eliminations Total
EQUITY 2 537 288 49 247 (15 619) 2 570 916
Equity of the shareholders of CD PROJEKT S.A. 2 537 288 49 247 (15 619) 2 570 916
Share capital 99 911 136 (136) 99 911
Supplementary capital 2 026 045 48 503 (5 514) 2 069 034
Share premium 116 700 - - 116 700
Other reserves 44 678 920 (1 933) 43 665
Foreign exchange differences on translation (3 195) (65) 1 016 (2 244)
Retained earnings / (Accumulated losses) 5 153 (279) (9 174) (4 300)
Net profit (loss) for the period 247 996 32 122 248 150
Non-controlling interests - - - -
NON-CURRENT LIABILITIES 22 873 667 (475) 23 065
Other financial liabilities 18 175 646 (475) 18 346
Other liabilities 2 334 - - 2 334
Deferred income 1 822 - - 1 822
Provision for retirement and similar benefits 497 21 - 518
Other provisions 45 - - 45
CURRENT LIABILITIES 116 636 48 397 (3 598) 161 435
Other financial liabilities 2 700 681 (663) 2 718
Trade payables 33 046 30 854 (2 894) 61 006
Current income tax liabilities - 243 - 243
Other liabilities 4 490 6 114 - 10 604
Deferred income 7 970 6 722 - 14 692
Provision for retirement and similar benefits 8 495 323 - 8 818
Other provisions 59 935 3 460 (41) 63 354
TOTAL EQUITY AND LIABILITIES 2 676 797 98 311 (19 692) 2 755 416
41
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated statement of financial position by segment as at 30.06.2024
CD PROJEKT RED GOG.COM Consolidation eliminations Total
NON-CURRENT ASSETS 1 497 494 44 385 (16 720) 1 525 159
Property, plant and equipment 217 276 2 149 (1 138) 218 287
Intangible assets 67 481 3 856 (368) 70 969
Expenditure on development projects 583 016 3 368 246 586 630
Investment properties 33 482 - - 33 482
Goodwill 56 438 - - 56 438
Investments in subordinated entities 15 445 - (15 445) -
Shares in non-consolidated subordinated entities 38 793 - - 38 793
Prepayments and deferred costs 4 569 33 056 - 37 625
Other financial assets 426 048 - - 426 048
Deferred tax assets 54 540 1 956 (15) 56 481
Other receivables 406 - - 406
CURRENT ASSETS 1 077 948 60 078 (3 178) 1 134 848
Inventories 3 319 - - 3 319
Trade receivables 79 299 7 807 (3 178) 83 928
Current income tax receivable 13 308 - - 13 308
Other receivables 58 065 2 127 - 60 192
Prepayments and deferred costs 12 248 14 934 - 27 182
Other financial assets 457 016 78 - 457 094
Bank deposits over 3 months 340 845 - - 340 845
Cash and cash equivalents 113 848 35 132 - 148 980
TOTAL ASSETS 2 575 442 104 463 (19 898) 2 660 007
42
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
CD PROJEKT RED GOG.COM Consolidation eliminations Total
EQUITY 2 449 708 50 070 (15 424) 2 484 354
Equity of the shareholders of CD PROJEKT S.A. 2 449 708 50 070 (15 424) 2 484 354
Share capital 99 911 136 (136) 99 911
Supplementary capital 2 026 046 48 503 (5 515) 2 069 034
Share premium 116 700 - - 116 700
Other reserves 34 456 744 (1 757) 33 443
Foreign exchange differences on translation (1 389) (65) 1 014 (440)
Retained earnings / (Accumulated losses) 5 153 (279) (9 174) (4 300)
Net profit (loss) for the period 168 831 1 031 144 170 006
Non-controlling interests - - - -
NON-CURRENT LIABILITIES 35 869 667 (646) 35 890
Other financial liabilities 18 628 646 (646) 18 628
Other liabilities 2 374 - - 2 374
Deferred income 1 989 - - 1 989
Provision for retirement and similar benefits 497 21 - 518
Other provisions 12 381 - - 12 381
CURRENT LIABILITIES 89 865 53 726 (3 828) 139 763
Other financial liabilities 3 867 650 (650) 3 867
Trade payables 29 683 32 468 (3 070) 59 081
Current income tax liabilities - 479 - 479
Other liabilities 4 672 6 085 - 10 757
Deferred income 6 375 7 448 - 13 823
Provision for retirement and similar benefits 8 968 460 - 9 428
Other provisions 36 300 6 136 (108) 42 328
TOTAL EQUITY AND LIABILITIES 2 575 442 104 463 (19 898) 2 660 007
43
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Consolidated statement of financial position by segment as at 31.12.2023*
CD PROJEKT RED GOG.COM Consolidation eliminations Total
NON-CURRENT ASSETS 1 421 258 46 167 (16 740) 1 450 685
Property, plant and equipment 181 955 2 404 (1 321) 183 038
Intangible assets 67 795 2 671 (408) 70 058
Expenditure on development projects 524 475 2 472 235 527 182
Investment properties 34 245 - - 34 245
Goodwill 56 438 - - 56 438
Investments in subordinated entities 15 226 - (15 226) -
Shares in non-consolidated subordinated entities 38 095 - - 38 095
Prepayments and deferred costs 4 913 36 993 - 41 906
Other financial assets 455 907 - - 455 907
Deferred tax assets 41 826 1 627 (20) 43 433
Other receivables 383 - - 383
CURRENT ASSETS 1 102 799 76 195 (16 179) 1 162 815
Inventories 3 576 - - 3 576
Trade receivables 203 783 5 916 (16 179) 193 520
Current income tax receivable 1 128 - - 1 128
Other receivables 52 228 5 513 - 57 741
Prepayments and deferred costs 10 601 17 271 - 27 872
Other financial assets 362 719 - - 362 719
Bank deposits over 3 months 338 205 - - 338 205
Cash and cash equivalents 130 559 47 495 - 178 054
TOTAL ASSETS 2 524 057 122 362 (32 919) 2 613 500
* restated data
44
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
CD PROJEKT RED GOG.COM Consolidation eliminations Total
EQUITY 2 369 714 48 837 (15 328) 2 403 223
Equity of the shareholders of CD PROJEKT S.A. 2 369 714 48 837 (15 328) 2 403 223
Share capital 99 911 136 (136) 99 911
Supplementary capital 1 681 868 38 251 (5 515) 1 714 604
Share premium 116 700 - - 116 700
Other reserves 24 184 525 (1 540) 23 169
Foreign exchange differences on translation (2 153) (65) 1 016 (1 202)
Retained earnings / (Accumulated losses) (21 544) 2 (9 255) (30 797)
Net profit (loss) for the period 470 748 9 988 102 480 838
Non-controlling interests - - - -
NON-CURRENT LIABILITIES 38 753 890 (869) 38 774
Other financial liabilities 20 038 869 (869) 20 038
Other liabilities 2 494 - - 2 494
Deferred income 2 315 - - 2 315
Provision for retirement and similar benefits 497 21 - 518
Other provisions 13 409 - - 13 409
CURRENT LIABILITIES 115 590 72 635 (16 722) 171 503
Other financial liabilities 6 389 1 038 (543) 6 884
Trade payables 24 202 50 716 (16 083) 58 835
Current income tax liabilities - 462 - 462
Other liabilities 7 099 8 102 - 15 201
Deferred income 6 887 6 283 - 13 170
Provision for retirement and similar benefits 6 414 329 - 6 743
Other provisions 64 599 5 705 (96) 70 208
TOTAL EQUITY AND LIABILITIES 2 524 057 122 362 (32 919) 2 613 500
* restated data
45
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Operating segments
In the third quarter of 2024, the Group’s operations were carried out in two business segments:
CD PROJEKT RED;
GOG.COM.
CD PROJEKT RED
The scope and model of operations
The operations of the CD PROJEKT RED studio are executed within the structures of CD PROJEKT S.A. (the domestic holding
company of the CD PROJEKT Group), CD PROJEKT Inc. (USA) and CD PROJEKT RED Vancouver Studio Ltd. (Canada).
These operations consist in creating and publishing video games, selling licences for their distribution, coordinating sales
promotions, and the production, sales licensing and releasing the accompanying products which use the brands owned.
The production and publishing of the computer games is executed by the CD PROJEKT RED studio and is based on the brands
owned by the Company - the Witcher and Cyberpunk. The studio is globally known for its Cyberpunk 2077 game and the Witcher
game series, the flagship brands of CD PROJEKT RED. In addition to the said franchises, the studio carries out internal concept
work on the third franchise, a proprietary IP with the code name Hadar.
As part of the publishing operations, the Company is responsible for the design of the campaigns which promote its own products
and independently maintains direct communication with players via electronic media channels and social media and by participating
in industry events.
Key products
Currently, the portfolio of the studio’s main products includes video games which comprise the Witcher trilogy: The Witcher, The
Witcher 2: Assassins of Kings, The Witcher 3: Wild Hunt with two expansions: Hearts of Stone and Blood and Wine, and Cyberpunk
2077 with an expansion Phantom Liberty.
GOG.COM
The scope and model of operations
GOG.COM is currently one of the world’s most popular independent digital distribution platforms for computer games, which is
distinguished by offering digital products without security features that make it difficult for users to use the games they have
purchased (DRM
1
).
The platform is available in English, French, German, Russian, Chinese and Polish, offering customers not only a fully localized
website or games, but also (with the exception of the Russian and Chinese versions), direct marketing activities in a given language
and popular local payment methods (in twelve currencies). On GOG.COM, games are available for Windows PCs, as well as for
macOS and Linux operating systems.
The operations of the GOG.COM segment consists in digital distribution of the games via own GOG.COM shop and GOG GALAXY
application. The platform makes it possible to purchase the game, pay for the game and download it to one’s own computer; in
addition, the GOG GALAXY application enables, among other things, automatic updates, saving the game in the cloud, network
play, including between platforms. Each purchase also comes with an offline installer which enables users to play without the need
for an Internet connection.
Key products
As at the date of publication of these financial statements, more than 11 000 products from over 1 300 partners are available on
GOG.COM. These include both timeless classics and the latest titles from such companies as Activision, Bethesda, CAPCOM,
Disney, Electronic Arts, Larian, SEGA or Ubisoft.
Through GOG.COM, the Group also sells its own products directly to retail customers, i.e. games from the Witcher universe and
Cyberpunk 2077 together with the Phantom Liberty expansion.
1
DRM (Digital Rights Management) - a generic term for technology that controls how and when digital content - games, music, films, books - can be used.
46
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Description of the Issuer’s major achievements or failures in the third quarter
of 2024 by operating segment
CD PROJEKT RED
Events relating to Cyberpunk 2077
On 4 July, another board game from the Cyberpunk universe was announced. Being developed by No Loading Games in
partnership with CD PROJEKT RED, the Cyberpunk: Edgerunners Board Game will be released in 2025.
On 22 August, an official meeting for the local community of Cyberpunk 2077 fans took place during gamescom 2024 in Cologne.
On that day, the organizers from CD PROJEKT RED invited guests to celebrate together in a special space arranged to look like the
well-known Vision of Liberty Dogtown.
On 3 September, a crowdfunding campaign for the board game Cyberpunk 2077, developed in collaboration with Go On Board,
was launched. The campaign on the Gamefound platform had already attracted more than 50,000 followers even before its official
launch. The game was funded in 10 minutes. To date, all targets have been unlocked, raising more than USD 7.5 million from 26,000
supporters. The game is scheduled for release in 2025.
On 12 September, patch 2.13 for Cyberpunk 2077 and Phantom Liberty was released for PC gamers, introducing AMD FidelityFX
Super Resolution 3 support with frame generation and various stability and visual fixes.
On 20 September, it was announced that CD PROJEKT RED is collaborating with Netflix on another project from the Cyberpunk
world. Work is underway on an animation that will once again take audiences to Night City. More details about the project will be
revealed in the future.
After the period discussed, the Poznań Game Arena (PGA) took place on 25-27 October. It is the biggest celebration of video game
players in Poland. During the event, participants had the opportunity to visit the stand prepared by CD PROJEKT RED to play
Cyberpunk 2077: Phantom Liberty, take a photo with the invited cosplayers, and buy official merchandise from the studio’s games.
On 30 October, CD PROJEKT RED announced that Cyberpunk 2077: Ultimate Edition, which includes the basic version of the game
along with the expansion Phantom Liberty, will be coming to Mac devices with Apple Silicon processors, including the iMac, Mac
mini and MacBook Pro powered by M4 family chips. The game has been optimized for the power of Apple’s chips and Metal
technology and will support a range of advanced features - including path tracing, frame generation and built-in surround sound
with dynamic head tracking. Cyberpunk 2077: Ultimate Edition will be available early next year via the Mac App Store, GOG.com,
Steam and Epic Games Store.
Events relating to the Witcher series games
On 20 August, CD PROJEKT RED announced that the Witcher 3: Wild Hund was available to players with a PlayStation Plus Extra
or Premium subscription on PlayStation 4 and PlayStation 5 consoles.
Other
On 8-10 September, the Promised Land Art Festival 2024 took place. It is an event organized by CD PROJEKT RED with EC1 and
the city of Łódź, bringing together professionals from the creative industries. This year’s sixth edition of the event was the largest
in the festival’s history, with the richest and most varied programme of activities and attractions. The festival was attended by more
than 900 participants and more than 60 speakers. The three-day festival featured more than 40 hours of lectures, panels and
discussion forums, 11 hours of demo sessions and more than 57 hours of hands-on workshops in areas such as digital sculpture,
visual narration, special and visual effects, animation, film make-up and cosplay.
On 1 September, the CD PROJEKT RED games community celebrated its 20th anniversary - exactly on 1 September 2004, the
studio’s official forum was launched. Over the years, it has opened up new channels and now maintains contact with the community
in 11 languages. To celebrate the 20th anniversary, a commemorative video featuring the CD PROJEKT RED community
was
published.
On 13 September, CD PROJEKT and the “Perspektywy” Education Foundation announced the fourth edition of the Girls in the Game
scholarship and mentoring programme, aimed at female secondary school students interested in developing a career in the video
games industry. Online recruitment for this year’s edition of the programme ended on 31 October 2024. Another 20 female
participants were selected from among all the applicants. The participants had an opportunity to learn the secrets of the video
games sector under the watchful eye of mentors from the CD PROJEKT RED studio.
After the period discussed, on 23 October, CD PROJEKT RED announced the expansion of the RED Playtesting programme to the
US and invited US players to join the growing community whose experiences and feedback will help shape the future of the studio’s
games. This initiative is not only an opportunity to play games from the CD PROJEKT RED studio, but above all a chance to
participate in the process of their creation. The in-house sessions will be held at CD PROJEKT RED’s Boston branch and will be
accompanied by online interviews available to people across the US.
47
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
GOG.COM
Digital distribution of games
As at the date of publication of these financial statements, the product range on GOG.COM comprises more than 11 000 items.
In the third quarter of 2024, the GOG.COM catalogue grew to include, among others, Resident Evil 2, Resident Evil 3, Frostpunk 2
or METAL GEAR RISING: REVENGEANCE, but also a unique product: the fan project Fallout: London, i.e. a free mod for the game
Fallout 4. The release of the free mod contributed significantly to an increase in sales of Fallout 4: Game of the Year Edition, making
it the most purchased game of the quarter.
Sales promotion
Sales promotion in the digital distribution of games mainly consists in adding new items of interest to users to the catalogue and
running seasonal promotional campaigns.
During the period discussed, GOG.COM hosted weekly themed promotions and dedicated sales from individual publishers. July
saw the end of one of the biggest seasonal promotional events – the Summer Sale, which began in June. Other seasonal events
this quarter were the Back to School Sale and the Autumn Sale. Also noteworthy was the new release of the Resident Evil game
series, the original trilogy of a hugely popular franchise, which had been out of distribution for years. In collaboration with the
Japanese giant CAPCOM, the GOG.COM team prepared the games to be fully compatible with modern systems, it improved
graphics, fluidity of gameplay, as well as provided the possibility to use modern controllers so that users could enjoy these classic
games again.
Other corporate events
There were no material corporate events during the reporting period.
Factors affecting the Group’s future performance
For the future growth of the Company and the Group, the ability to retain and offer growth opportunities to a team of the best
creative professionals and experts and to attract talented new employees to work on the Group’s projects is of critical importance.
Strategic directions related to talent acquisition, team development and support are presented in the
CD PROJEKT Group
Sustainability Report for 2023.
At the same time, important aspects supporting the development of the Group will include effective implementation of the
production plan of CD PROJEKT RED presented in October 2022, within the framework of Strategy Update
, as well as further
development of the recognizability and popularity of franchises (including through cooperation with external entities) and the
enrichment with multiplayer gameplay elements of the titles developed as part of the IP owned.
Moreover, the operations of the CD PROJEKT Group companies are affected by external factors such as macroeconomic
developments, changes in legal or tax regulations, similarly to other entities doing business on the local or international markets.
At the same time, due to the nature of the video game industry, changes in the area of technology, which can measurably affect
the efficiency of the game development process, should be treated as one of the key external factors influencing the development
and operations of the Group companies.
Over the last quarter of 2024, the CD PROJEKT Group intends to continue the organic growth of its business.
CD PROJEKT RED
In the CD PROJEKT RED segment, expansion of the operations is directly linked to new projects implemented, the scale of their
production and popularity among players. In this context, the current results of the CD PROJEKT Group are driven by the popularity
of the games in the Cyberpunk and The Witcher universe already issued by the Company, and in the coming periods they will be
driven by the progress of the production work and the market reception of the successive productions realized by the Company.
Over the coming quarters, the continuation of development work on the announced projects and further development of the
operations of the newly established CD PROJEKT RED team in Boston will be of particular importance to the studio.
Another important process in the context of the development of the CD PROJEKT RED studio is to continue working on the
implementation of the new Unreal Engine 5, improving the engine so it could support open world games, and adapting and
optimizing the engine components to creative assumptions of the subsequent projects, which is one of the premises of the strategic
partnership with Epic Games. The new engine used should contribute to making the process of games creation more efficient. The
agreement also involves dedicated technical support on the part of Epic Games for titles released by CD PROJEKT RED. The ability
to work on the EU5 engine should also facilitate recruitment and onboarding of new members of the development teams due to
the good knowledge of the Unreal Engine among game creators.
48
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
The key factor for maintaining the current high growth rate of the CD PROJEKT RED segment in the future is to further develop the
in-house ability to produce games of the highest world class and quality, combined with the ability to communicate effectively with
players around the world. Both are part of the RED 2.0 studio’s ongoing transformation which aims, among other things, to change
the way games are developed to a more flexible one, based on agile methodologies, and supporting the quality of future products.
Transformation of the business to a publishing model based on two concurrent brands and several simultaneous projects will
potentially allow for production and financial optimization, an increased frequency of launches and higher total revenue and further
diversification of risks, while creating more opportunities for professional self-realization for the creators employed by the Company.
GOG.COM
In the GOG.COM segment, growth was supported by the increasing propensity of consumers to purchase games directly online in
recent years.
For the further development of the GOG.COM platform, it will be important to make it more popular among gamers and to attract
more newly released products. GOG sp. z o.o. is proactively talking with leading international game developers and publishers,
constantly expanding the range of suppliers and products on offer. Successive first releases of new games on GOG-COM each time
contribute to increasing user activity and translate into sales growth. In addition to continuously expanding the catalogue of the
products offered, the growth of GOG sp. z o.o.’s operations also requires broadening the user base by reaching out to new players
around the world who have not yet had an account on the GOG.COM platform. In this respect, in recent years, a constant growth
of the number of users has been achieved, due to both intensive own PR activities, cooperation with business partners and
synergies resulting from cooperation with CD PROJEKT S.A.
The results and development of the activities carried out as part of the GOG.COM segment, including the acquisition of unique
knowledge and experience and the full use of technological solutions available, will be affected by the development of
functionalities which support the sale of games on the platform, including better integration of the monetization mechanisms of the
GOG GALAXY application with the GOG.COM shop, as well as increased activity to expand the offer of classic games on the
platform.
Other
The development of the CD PROJEKT Group will also be influenced by the development projects implemented by its subsidiary,
The Molasses Flood. The Boston-based studio is working on a game set in the Witcher universe, codenamed Sirius.
Impact of the political and economic situation in Ukraine on sales during
the reporting period
Impact on sales
In response to the Russian armed invasion of Ukraine, on 3 March 2022 the Management Board of CD PROJEKT decided to suspend
sales of the CD PROJEKT Group’s products as well as games distributed on the GOG.COM platform in the territory of Russia and
Belarus. The Company estimated that in the 12 months preceding the adoption of the aforementioned decision, i.e. from March
2021 to February 2022, the total share of Russia and Belarus in sales of products in the CD PROJEKT RED segment and in the sales
of the GOG.COM segment amounted to, respectively, approximately 5.4% and approximately 3.7%.
Risks associated with the current political and economic situation in Ukraine
The Parent Company continually monitors the impact of the current political and economic situation in Ukraine, Russia and Belarus
on the activities of the CD PROJEKT Group.
The Parent Company has terminated its cooperation with the Russian and Belarussian suppliers and is currently not considering
engaging in new collaboration.
As at the date of publication of these financial statements, the Group’s operating activities are carried out without any disruptions,
and the effects of the Russian armed invasion of Ukraine do not have a significant direct negative impact on the Group’s operations.
In the opinion of the Management Board of the Parent Company, the current political and economic situation in Ukraine does not
materially affect the quantitative data presented in the financial statements, has not resulted in any indications of impairment of
assets, should not have a significant negative effect on the Group’s results in the next quarter of 2024, and does not pose any risks
to the Company’s continuing as a going concern within 12 months of the end of the reporting period. Given the unprecedented
nature of the current situation and the related significant uncertainty, particularly the inability to predict the duration of the Russian
invasion, as at the date of publication of these financial statements, it is impossible to reliably estimate the long-term impact of the
invasion of Ukraine by the Russian armed forces on the long-term performance and condition of the Company and its Group. Any
assessments and forecasts in this regard are uncertain and will be subject to further monitoring and analysis by the Group.
The above assessment has been prepared to the best of the Parent Company’s knowledge as at the date of preparation of these
financial statements.
49
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Seasonality or cyclicality of the Group’s operations
CD PROJEKT RED
Segment revenues and results are strongly affected by the new titles’ release schedule. CD PROJEKT RED usually takes between
3 and 6 years to produce a game. Historically, the studio focused on the development of one major production, with conceptual
work on the next game starting even before the production and market release of the previous game was completed.
CD PROJEKT RED also engages in smaller-scale projects – such as add-ons for its own games or adapting the existing products to
working on new gaming platforms.
Such projects may be carried out directly by the Company or by its external partners.
Currently, several productions are being developed in parallel in the CD PROJEKT Group (also in cooperation with external
development teams).
With regard to games which have already been released, their yearly sales breakdown is dependent on the schedule of periodic
sale campaigns. In most cases, strong sales are reported in the second and fourth quarters, whereas the first and the third quarters
(the latter of which overlaps with the summer vacation season) see weaker sales.
In addition to pure development activities, the Company also actively develops its franchises in other fields, with a view to continually
expanding its audience and exploring other types of media and products.
Chart 1
Release quarters of the CD PROJEKT RED segment – sales of products, goods for resale and materials in 2011-2024
(in PLN thousands)
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
50
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
GOG.COM
The digital videogame distribution market on which GOG.COM operates is characterized by seasonal fluctuations in revenues. On
an annual basis, the highest revenues are typically earned in the second and fourth quarters, whereas the lowest revenues in the
first and third quarters. Sales in the second and fourth quarters are temporarily boosted by promotional campaigns typically
organized in these quarters.
The sales volume may also be strongly affected by the list of new products introduced in a given reporting period.
Chart 2 Quarterly distribution of sales of goods for resale and materials of the GOG.COM segment in 2018-2024 (in PLN thousands)
Key customers
The CD PROJEKT Group cooperates with external customers whose share in the consolidated revenues of the Group exceeds 10%.
Within the CD PROJEKT RED segment, the commercial activities carried out by CD PROJEKT S.A. in cooperation with two customers
generated cumulative sales exceeding 10% of the CD PROJEKT Group’s total consolidated sales revenue by the end of the third
quarter of 2024:
customer 1: PLN 258 505 thousand, which accounted for 40% of the Group’s total consolidated sales revenue;
customer 2: PLN 121 491 thousand, which accounted for 19% of the Group’s total consolidated sales revenue.
The customers referred to above are not related to CD PROJEKT S.A. or its subsidiaries. In the GOG.COM segment, no single
external customer exceeded the threshold of 10% of the Group’s consolidated revenue.
0
40000
80000
120000
160000
200000
Q1 Q2 Q3 Q4
2018 2019 2020 2021 2022 2023 2024
Notes – other explanatory notes to
the interim condensed consolidated
financial statements
4
52
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 1. Description of those items affecting assets, liabilities, equity, net profit
or loss and cash flows which are not typical in terms of their type, size and
impact
Material events
The sale of Cyberpunk 2077 together with the add-on Phantom Liberty had the greatest impact on the results of the CD PROJEKT
Group in the analysed reporting period. However, the sale of The Witcher 3: Wild Hunt continues to be important for the Group’s
results.
As part of the production of games, the most important capital expenditure on research and development projects incurred during
the reporting period related to the Polaris, Orion and Sirius projects and the anime project, which are in the development phase,
and the Canis Majoris and Hadar projects, which are at an earlier phase of production, i.e. the research phase.
In the third quarter of 2024, there were no significant unusual events affecting the Group's results of operations.
53
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 2. Property, plant and equipment
Changes in property, plant and equipment (by category) for the period 01.01.2024 - 30.09.2024
Land
Buildings and
structures
Civil and
hydraulic
engineering
facilities
Plant and
machinery
Vehicles
Other fixed assets
Assets under
construction
Total
Gross carrying amount
as at 01.01.2024
41 859 107 457 3 927 90 736 3 677 8 152 18 392 274 200
Increase due to: - 360 44 5 365 606 88 66 839 73 302
purchase - 251 - 5 316 - 43 66 839 72 449
lease contracts
concluded
- 47 - - - - - 47
transfer from assets
under construction
- 51 44 35 - 45 - 175
reclassification - - - - 597 - - 597
other - 11 - 14 9 - - 34
Decrease due to: - 64 - 1 177 550 39 810 2 640
sale - - - 780 547 30 - 1 357
scrapping - - - 93 - 9 - 102
transfer from assets
under construction
- - - - - - 175 175
reclassification - - - - 3 - 635 638
free-of-charge
receipt
- - - 273 - - - 273
other - 64 - 31 - - - 95
Gross carrying amount
as at 30.09.2024
41 859 107 753 3 971 94 924 3 733 8 201 84 421 344 862
Accumulated
depreciation
as at 01.01.2024
2 402 28 941 711 52 785 1 778 4 545 - 91 162
Increase due to: 439 5 600 152 10 200 524 593 - 17 508
depreciation charge 439 5 600 152 10 191 524 593 - 17 499
other - - - 9 - - - 9
Decrease due to: - - - 1 140 547 37 - 1 724
sale - - - 774 547 30 - 1 351
scrapping - - - 93 - 7 - 100
free-of-charge
transfer
- - - 273 - - - 273
Accumulated
depreciation
as at 30.09.2024
2 841 34 541 863 61 845 1 755 5 101 - 106 946
Impairment write-
downs as at 01.01.2024
- - - - - - - -
Impairment write-
downs
as at 30.09.2024
- - - - - - - -
Net carrying amount
as at 01.01.2024
39 457 78 516 3 216 37 951 1 899 3 607 18 392 183 038
Net carrying amount
as at 30.09.2024
39 018 73 212 3 108 33 079 1 978 3 100 84 421 237 916
54
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Amounts of contractual commitments to purchase property, plant and equipment in the future
30.09.2024 30.06.2024 31.12.2023
Construction of an office building on the CD PROJEKT campus 45 477 68 427 83 292
Leasing of passenger cars 397 397 562
Total 45 874 68 824 83 854
Right-of-use assets relating to property, plant and equipment
30.09.2024
Gross amount
Accumulated
depreciation
Net amount
Land 15 964 1 058 14 906
Real properties 12 887 8 698 4 189
Plant and machinery 48 40 8
Vehicles 2 133 604 1 529
Total 31 032 10 400 20 632
30.06.2024
Gross amount
Accumulated
depreciation
Net amount
Land 15 964 1 003 14 961
Real properties 13 022 8 111 4 911
Plant and machinery 48 36 12
Vehicles 1 800 1 146 654
Total 30 834 10 296 20 538
31.12.2023
Gross amount
Accumulated
depreciation
Net amount
Land 15 964 891 15 073
Real properties 12 910 6 852 6 058
Plant and machinery 48 28 20
Vehicles 2 227 550 1 677
Total 31 149 8 321 22 828
55
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 3. Intangible assets and expenditure on development projects
Changes in intangible assets and expenditure on development projects for the period 01.01.2024 -
30.09.2024
Expenditure on
development
projects in progress
Expenditure on
completed
development
projects
Trademarks
Patents and
licenses
Copyrights
Computer software
Goodwill
Intangible assets
under construction
Total
Gross carrying amount
as at 01.01.2024
226 756
1 202 770
33 222
5 561
18 708
46 651
56 438
4 241
1 594 347
Increase due to: 183 581
2 954
-
1 094
20
6 933
-
2 327
196 909
purchase -
-
-
1 094
20
374
-
2 091
3 579
internally
generated assets
183 581
-
-
-
-
-
-
236
183 817
transfer from
intangible assets
under construction
-
-
-
-
-
6 559
-
-
6 559
transfer from
expenditure on
development
projects in
progress
-
2 954
-
-
-
-
-
-
2 954
Decrease due to: 2 954
-
-
-
-
10
-
6 559
9 523
transfer from
intangible assets
under construction
-
-
-
-
-
-
-
6 559
6 559
transfer from
expenditure on
development
projects in
progress
2 954
-
-
-
-
-
-
-
2 954
other -
-
-
-
-
10
-
-
10
Gross carrying amount
as at 30.09.2024
407 383
1 205 724
33 222
6 655
18 728
53 574
56 438
9
1 781 733
Accumulated
amortization
as at 01.01.2024
-
888 568
-
4 425
850
33 050
-
-
926 893
Increase due to: -
79 520
-
1 208
222
2 502
-
-
83 452
amortization
charge
-
79 520
-
1 208
222
2 502
-
-
83 452
Decrease -
-
-
-
-
-
-
-
-
Accumulated
amortization
as at 30.09.2024
-
968 088
-
5 633
1 072
35 552
-
-
1 010 345
Impairment write-
downs as at
01.01.2024
-
13 776
-
-
-
-
-
-
13 776
Increase -
-
-
-
-
-
-
-
-
Decrease -
-
-
-
-
-
-
-
-
Impairment write-
downs as at
30.09.2024
-
13 776
-
-
-
-
-
-
13 776
Net carrying amount
as at 01.01.2024
226 756
300 426
33 222
1 136
17 858
13 601
56 438
4 241
653 678
Net carrying amount
as at 30.09.2024
407 383
223 860
33 222
1 022
17 656
18 022
56 438
9
757 612
56
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Amounts of contractual commitments to purchase intangible assets in the future
None.
Note 4. Goodwill
During the period from 1 July to 30 September 2024, there were no changes in goodwill.
Note 5. Investment properties
The Parent Company owns a real estate complex located at Jagiellońska 74 and 76 in Warsaw. Given that a part of the properties
purchased is leased out to third parties, including the CD PROJEKT Group companies, the Group decided to classify these
properties partly as investment properties. The remaining part of the property is used for own needs of the activities conducted.
The Group measures the properties purchased at cost less accumulated depreciation.
The last appraisal report by an expert surveyor, for the buildings recognized partly as property, plant and equipment and partly as
investment properties, was prepared on the basis of unit prices for the construction of buildings with the most similar parameters
included in the Bistyp Catalogue of Unit Prices for Works and Investment Facilities 2021. The value resulting from the last appraisal
of individual assets performed in 2021 amounted to PLN 60 692 thousand for the buildings at Jagiellońska 74 and PLN 13 212
thousand for the buildings at Jagiellońska 76 and was higher than the net book value recorded at that time in the Parent Company’s
books of account.
57
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Changes in investment properties for the period 01.01.2024 - 30.09.2024
Gross carrying amount as at 01.01.2024 40 313
Increase due to: 23
capitalized expenditure 23
Decrease -
Gross carrying amount as at 30.09.2024 40 336
Accumulated depreciation as at 01.01.2024 6 068
Increase due to: 1 162
depreciation charge 1 162
Decrease -
Accumulated depreciation as at 30.09.2024 7 230
Impairment write-downs as at 01.01.2024 -
Increase -
Decrease -
Impairment write-downs as at 30.09.2024 -
Net carrying amount as at 30.09.2024 33 106
Amounts of contractual liabilities in respect of purchase of investment properties
None.
58
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 6. Inventories
30.09.2024 30.06.2024 31.12.2023*
Goods for resale 3 582 3 700 5 596
Other materials 6 3 8
Gross inventories 3 588 3 703 5 604
Inventory write-downs 340 384 2 028
Net inventories 3 248 3 319 3 576
* restated data
Changes in inventory write-downs
Write-downs of finished products as at 01.01.2024 2 028
Increase -
Decreases, including: 1 688
reversal of inventory write-downs against other operating income 777
utilization of inventory write-downs 911
Write-downs of finished products as at 30.09.2024 340
Note 7. Trade and other receivables
30.09.2024 30.06.2024 31.12.2023
Trade and other receivables, gross 156 318 144 607 251 723
Write-downs 76 81 79
Trade and other receivables, net 156 242 144 526 251 644
from related entities 9 079 3 981 1 589
from other entities 147 163 140 545 250 055
Changes in write-downs of receivables
Trade
receivables
Other
receivables
Total
OTHER ENTITIES
Write-downs as at 01.01.2024 79 - 79
Increases, including: 1 - 1
recognition of write-downs of overdue and disputed receivables 1 - 1
Decreases, including: 4 - 4
reversal of write-downs 4 - 4
Write-downs as at 30.09.2024 76 - 76
59
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Current and overdue trade receivables as at 30.09.2024
Total Not overdue
Overdue, in days
1 – 60 61 – 90 91 – 180 181 – 360 >360
RELATED ENTITIES
gross receivables 3 569 3 057 258 150 104 - -
default ratio 0% 0% 0% 0% 0% 0%
write-down resulting
from the ratio
- - - - - - -
write-down
determined
individually
- - - - - - -
total expected credit
losses
- - - - - - -
Net receivables 3 569 3 057 258 150 104 - -
Total Not overdue
Overdue, in days
1 – 60 61 – 90 91 – 180 181 – 360 >360
OTHER ENTITIES
gross receivables 78 347 76 985 683 598 5 - 76
default ratio 0% 0% 0% 0% 0% 0%
write-down resulting
from the ratio
- - - - - - -
write-down
determined
individually
76 - - - - - 76
total expected credit
losses
76 - - - - - 76
Net receivables 78 271 76 985 683 598 5 - -
Total
gross receivables 81 916 80 042 941 748 109 - 76
impairment write-
downs
76 - - - - - 76
Net receivables 81 840 80 042 941 748 109 - -
60
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Other receivables
30.09.2024 30.06.2024 31.12.2023
Other gross receivables, including: 74 402 60 598 58 124
tax receivables other than corporate income tax 54 094 48 347 51 151
prepayments for inventories 13 238 5 596 3 768
prepayments for development projects 6 339 5 774 2 173
security deposits 669 675 658
provisions for sales revenue - prepayments - - 249
prepayments for property, plant and equipment and intangible assets 24 24 77
settlements with employees 23 28 29
settlements with the members of the Management Boards
of the Group companies
9 - 3
other 6 154 16
Write-downs - - -
Other net receivables, including: 74 402 60 598 58 124
current 73 996 60 192 57 741
non-current 406 406 383
Note 8. Other financial assets
30.09.2024 30.06.2024 31.12.2023
Loans granted 2 565 3 020 3 225
Bonds 857 434 875 497 793 200
Derivative financial instruments 7 952 1 092 18 683
Private equity interests in the gaming sector 3 379 3 533 3 518
Other financial assets, including: 871 330 883 142 818 626
current 531 087 457 094 362 719
non-current 340 243 426 048 455 907
61
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 9. Prepayments and deferred costs
30.09.2024 30.06.2024 31.12.2023
Minimum guarantees, advance payments and prepayments
(GOG.COM)
41 168 47 416 53 539
Software, licenses 8 759 10 354 9 487
Costs of future marketing services 1 356 2 285 1 456
Fees for pre-emptive rights 1 084 1 111 1 164
Costs of repairs and maintenance 570 646 809
Staff relocation costs 435 435 343
Business travel (tickets, hotels, insurance) 425 332 281
Costs of IT security resources 296 371 401
Costs in connection with redevelopment of the car park 260 260 260
Property and personal insurance 215 478 1 067
Perpetual usufruct 77 154 -
Domains, servers 46 40 72
Other prepayments and deferred costs 1 111 925 899
Prepayments and deferred costs, including: 55 802 64 807 69 778
current 23 309 27 182 27 872
non-current 32 493 37 625 41 906
62
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 10. Deferred income tax
Deductible temporary differences underlying the deferred tax asset
31.12.2023*
Differences affecting
the deferred tax
recognized in the
profit or loss
30.09.2024
Provision for other employee benefits 5 331 (142) 5 189
Provision for costs of performance-related and
other remuneration
49 813 (20 134) 29 679
Tax loss 1 476 - 1 476
Foreign exchange losses 38 396 (33 401) 4 995
Difference between the carrying and tax amount
of expenditure on development projects
22 041 1 144 23 185
Salaries and wages and social security payable
in future periods
23 10 33
Deferred income in respect of virtual wallet top-
ups and fringe benefit scheme
4 128 653 4 781
Other provisions 42 935 (3 344) 39 591
Tax value of leased non-current assets 21 013 (1 864) 19 149
Research and development relief 221 724 9 024 230 748
Prepayments recognized as revenue for tax
purposes
4 979 (812) 4 167
Difference between the net carrying amount and
tax amount of property, plant and equipment and
intangible assets
12 - 12
Measurement of forward contracts 496 (307) 189
Other 3 608 - 3 608
Total deductible differences, including: 415 975 (49 173) 366 802
taxed at 5% 130 495 (67 641) 62 854
taxed at 19% 283 827 18 468 302 295
deferred tax charged abroad 1 653 - 1 653
Deferred income tax assets 60 907 127 61 034
* restated data
63
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Taxable temporary differences underlying the deferred tax provision
31.12.2023
Differences affecting
the deferred tax
recognized in the
profit or loss
30.09.2024
Difference between the net carrying amount and
tax amount of property, plant and equipment and
intangible assets
22 081 729 22 810
Current period revenue invoiced in the
subsequent period/accrued income
191 864 (117 697) 74 167
Foreign exchange gains 1 425 (226) 1 199
Difference between the carrying and tax amount
of expenditure on development projects
48 802 (13 534) 35 268
Tax value of leased non-current assets 21 063 (2 161) 18 902
Other 144 (95) 49
Total taxable differences, including: 285 379 (132 984) 152 395
taxed at 5% 263 327 (138 623) 124 704
taxed at 19% 20 767 5 625 26 392
deferred tax charged abroad 1 285 14 1 299
Deferred tax provisions 17 474 (5 860) 11 614
The deferred part of the income tax for the Polish companies was determined either at the corporate income tax rate of 19% for the
tax base corresponding to income from other sources, or at the rate of 5% for the tax base corresponding to income from qualifying
intellectual property (the so-called IP BOX), and in the case of the activities conducted in the USA by CD PROJEKT RED Inc, based
on the applicable rates of the federal and state taxes. When determining the appropriate tax rate for temporary differences, the
Group relied on forecasts of which tax base will give rise to the realization of the temporary differences recognized.
Net deferred tax assets/provisions
30.09.2024 30.06.2024 31.12.2023*
Deferred tax assets 61 034 67 615 60 907
Deferred tax provisions 11 614 11 134 17 474
* restated data
Income tax expense recognized in the income statement
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Current income tax, including: 7 214 6 425 25 116 29 944
withholding tax paid abroad 1 865 9 653 5 750 25 614
Change in deferred tax 7 061 24 380 (5 987) 30 439
Income tax expense recognized in the income statement 14 275 30 805 19 129 60 383
64
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 11. Share capital
Share capital – structure as at 30.09.2024
Series Number of shares Value of the series/issue at par
Manner of covering share
capital
A-M 99 910 510
99 910 510
Fully paid up
Total 99 910 510 99 910 510 -
As at the date of publication of this report, the Parent Company’s share capital amounts to PLN 99 910 510 and consists of
99 910 510 ordinary bearer shares with a par value of PLN 1 each, designated as A-M series shares. The total number of votes
resulting from all shares of the Parent Company is 99 910 510.
During the reporting period and after the balance sheet date, there were no changes in the amount of the Parent Company’s share
capital.
Note 12. Provision for retirement and similar benefits
30.09.2024 30.06.2024 31.12.2023*
Provision for retirement and disability bonuses 529 529 529
Holiday pay provision 8 807 9 417 6 732
Total, including: 9 336 9 946 7 261
current 8 818 9 428 6 743
non-current 518 518 518
* restated data
Provision for
retirement and
disability bonuses
Holiday pay provision Total
As at 01.01.2024* 529 6 732 7 261
Provisions recorded during the year - 8 614 8 614
Provisions utilized/released - 6 539 6 539
As at 30.09.2024, including: 529 8 807 9 336
current 11 8 807 8 818
non-current 518 - 518
* restated data
65
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 13. Other provisions
30.09.2024 30.06.2024* 31.12.2023*
Provision for liabilities, including: 63 399 54 709 83 617
provision for costs of the audit and review of the financial
statements
92 103 198
provision for costs of external services 14 866 12 021 11 983
provision for costs of performance-related and other remuneration 29 679 20 200 49 813
provision for other costs 18 762 22 385 21 623
Total, including: 63 399 54 709 83 617
current 63 354 42 328 70 208
non-current 45 12 381 13 409
* restated data
Changes in other provisions
Provision for costs of
performance-related
and other
remuneration
Other provisions Total
As at 01.01.2024 49 813 33 804 83 617
Provisions recorded during the year 29 679 99 580 129 259
Provisions utilized/released 49 813 99 664 149 477
As at 30.09.2024, including: 29 679 33 720 63 399
current 29 679 33 675 63 354
non-current - 45 45
66
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 14. Other liabilities
30.09.2024 30.06.2024 31.12.2023
Taxes (other than corporate income tax), customs duty, social
security and other payables
9 832 10 079 14 613
VAT 5 212 5 295 7 364
Withholding tax 15 4 470
Personal income tax 1 111 872 3 614
Social security contributions 3 377 3 782 2 798
PFRON (State Fund for Rehabilitation of Disabled People) 84 89 84
PIT-8AR (personal income tax) settlements 19 23 283
Other 14 14 -
Other liabilities 3 106 3 052 3 082
Wages and salaries payable - - 9
Liabilities in respect of pre-emptive rights and costs of future
marketing services
2 200 2 260 2 380
Security deposits received 134 114 114
Other settlements with employees 141 121 103
Other settlements with the members of the Management Board 2 - 1
Prepayments received from foreign customers 159 15 84
Other liabilities 470 542 391
Total other liabilities 12 938 13 131 17 695
current 10 604 10 757 15 201
non-current 2 334 2 374 2 494
Current and overdue other liabilities as at 30.09.2024
Total Not overdue
Overdue, in days
1 – 60 61 – 90 91 – 180 181 – 360 >360
To related entities 1 - 1 - - - -
To other entities 12 937 12 617 110 2 4 - 204
Total 12 938 12 617 111 2 4 - 204
Note 15. Deferred income
30.09.2024 30.06.2024 31.12.2023
Subsidies 2 525 2 754 3 214
Sales relating to future periods 8 613 7 778 7 218
GOG wallet 5 332 5 225 4 993
Rental of company phones 44 55 60
Total deferred income, including: 16 514 15 812 15 485
current 14 692 13 823 13 170
non-current 1 822 1 989 2 315
67
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 16. Information on financial instruments
Fair values and hierarchy of specific classes of financial instruments
The Management Boards of the Group companies have analysed specific classes of financial instruments. Based on the analysis, it
was concluded that the carrying amounts of the instruments do not differ materially from their fair values as at both 30 September
2024, 30 June 2024 and 31 December 2023.
30.09.2024 30.06.2024 31.12.2023*
LEVEL 1
Assets measured at fair value
Assets measured at fair value through other comprehensive income 224 231 229 320 224 485
bonds issued by or secured with a guarantee of foreign
governments – EUR
22 025 18 957 21 831
bonds issued by or secured with a guarantee of foreign
governments - USD
202 206 210 363 202 654
LEVEL 2
Assets measured at fair value through profit or loss
Derivatives 7 952 1 092 18 683
currency forwards - EUR 455 517 1 161
currency forwards - USD 7 497 575 17 522
Private equity interests in the gaming sector 3 379 3 533 3 518
private equity interests in the gaming sector - SEK 947 948 980
private equity interests in the gaming sector - USD 2 432 2 585 2 538
Liabilities measured at fair value through profit or loss
Derivatives 188 805 495
currency forwards - EUR 10 - 102
currency forwards - USD 178 - 393
currency forwards - JPY - 805 -
* restated data
Financial instruments measured at fair value are classified according to a three-level fair value hierarchy:
Level 1 – quoted prices in active markets for identical assets or liabilities.
Level 2 – fair value based on observable market data.
Level 3 – fair value based on market data that is not observable on the market.
68
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Financial assets – classification and measurement
30.09.2024 30.06.2024 31.12.2023
Financial assets measured at amortized cost 1 261 826 1 223 356 1 282 102
Other non-current receivables 406 406 383
Trade receivables 81 840 83 928 193 520
Cash and cash equivalents 82 281 148 980 178 054
Bank deposits over 3 months 461 531 340 845 338 205
Treasury bonds and bonds guaranteed by the State Treasury 633 203 646 177 568 715
Loans granted 2 565 3 020 3 225
Financial assets measured at cost 37 362 38 793 38 095
Shares in non-consolidated subordinated entities 37 362 38 793 38 095
Assets measured at fair value through other comprehensive income 224 231 229 320 224 485
Bonds issued by or secured with a guarantee of foreign
governments
224 231 229 320 224 485
Financial assets at fair value through profit or loss 11 331 4 625 22 201
Derivative financial instruments 7 952 1 092 18 683
Private equity interests in the gaming sector 3 379 3 533 3 518
Total financial assets 1 534 750 1 496 094 1 566 883
Financial liabilities – classification and measurement
30.09.2024 30.06.2024 31.12.2023
Financial liabilities measured at amortized cost 81 882 80 771 85 262
Trade payables 61 006 59 081 58 835
Other financial liabilities 20 876 21 690 26 427
Financial liabilities at fair value through profit or loss 188 805 495
Derivative financial instruments 188 805 495
Total financial liabilities 82 070 81 576 85 757
In accordance with the requirements of IFRS 9 Financial Instruments, the Company has analysed the business model for managing
financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio, and concluded
that:
the purpose of investments in domestic and foreign Treasury bonds and domestic and foreign bonds guaranteed by the
governments is to hold them to maturity and to collect contractual cash flows;
investment mandates for managing the foreign Treasury bonds portfolio (bonds issued by or secured with a guarantee
of foreign governments) allow selling bonds before maturity as part of the adopted strategy;
all bonds purchased meet the SPPI test.
As a result of the analysis conducted, the purchased bonds were classified into two financial asset management models which
differ in terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury
are measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds and foreign bonds
guaranteed by governments are measured at fair value through other comprehensive income, because of the investment mandate
which allows the possibility of the portfolio being managed by an Asset Manager.
In accordance with the requirements of IFRS 13 Fair Value Measurement, the Group has analysed the valuation of the financial
instruments measured at amortized cost in the consolidated statement of financial position in order to determine their fair values
and their classification in the fair value hierarchy.
Listed debt securities were classified as Level 1. These are State Treasury Bonds and bonds secured with a guarantee by the State
Treasury, the fair value of which was determined on the basis of the market valuation provided by a brokerage house under the
applicable brokerage services agreement.
69
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
30.09.2024 30.06.2024 31.12.2023
LEVEL 1
Fair value of assets measured at amortized cost
634 315 643 238 565 473
Treasury bonds and bonds guaranteed by the State Treasury 634 315 643 238 565 473
Other items of financial assets and financial liabilities measured at amortized cost were classified as Level 3.
With regard to equity interests in other entities, the Group estimates the fair values of the shares held using the method which
consists in forecasting future cash flows generated by the relevant cash generating unit and requires determining a discount rate
to be used to calculate the present value of these cash flows. In justified cases, the Group assumes a historical cost as an acceptable
approximation of the fair value.
The Group did not determine the fair values of receivables, trade payables, cash and cash equivalents, bank deposits over 3 months
or loans granted with variable interest, because their carrying amounts are considered by the Group to be a reasonable
approximation of their fair values.
There were no movements between the levels in the fair value hierarchy in the reporting period or in the comparative period.
70
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 17. Sales revenue
Sales revenue – geographical structure 2024*
01.07.2024 – 30.09.2024 01.01.2024 – 30.09.2024
in PLN in % in PLN in %
Domestic sales 9 961 4.4% 24 173 3.7%
Export sales, including: 217 594 95.6% 628 202 96.3%
Europe 39 598 17.4% 121 040 18.6%
North America 168 905 74.2% 465 931 71.4%
South America 1 182 0.5% 3 331 0.5%
Asia 5 434 2.4% 31 342 4.8%
Australia 2 342 1.0% 6 175 0.9%
Africa 133 0.1% 383 0.1%
Total 227 555 100% 652 375 100%
Sales revenue – geographical structure 2023*
01.07.2023 – 30.09.2023 01.01.2023 – 30.09.2023
in PLN in % in PLN in %
Domestic sales 9 372 2.1% 23 238 3.0%
Export sales, including: 433 310 97.9% 744 454 97.0%
Europe 76 338 17.2% 147 317 19.2%
North America 329 828 74.5% 540 442 70.4%
South America 1 577 0.4% 3 323 0.4%
Asia 22 270 5.0% 46 435 6.1%
Australia 3 042 0.7% 6 449 0.8%
Africa 255 0.1% 488 0.1%
Total 442 682 100% 767 692 100%
* The data presented based on the location of the registered office of the customers of the Group companies: for CD PROJEKT S.A.
– the distributors, and for retail sales of GOG Sp. z o.o. and CD PROJEKT RED Inc. – end customers.
Sales revenue – by type of production
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Own production 180 158 390 534 522 987 628 634
Third party production 46 385 51 693 126 667 138 017
Other revenue 1 012 455 2 721 1 041
Total 227 555 442 682 652 375 767 692
Sales revenue – by distribution channel
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Games - box issues 4 088 10 364 25 161 32 306
Games - digital issues 213 948 428 659 595 186 716 880
Other revenue 9 519 3 659 32 028 18 506
Total 227 555 442 682 652 375 767 692
71
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 18. Operating expenses
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Depreciation and amortization of property, plant and
equipment, intangible assets, expenditure on development
projects and investment properties, including:
3 883 3 271 10 966 9 942
depreciation of leased buildings 364 244 1 140 803
depreciation of leased vehicles 114 110 353 347
Materials and energy used 1 058 1 737 3 253 3 520
External services, including: 33 684 53 072 94 855 106 595
costs of short-term leases and low value leases 115 121 361 363
Taxes and fees 597 704 1 483 1 645
Salaries and wages, social insurance and other benefits 45 167 56 854 138 111 138 274
Business travel 1 462 1 125 3 688 2 942
Cost of using company cars 49 63 179 180
Cost of goods for resale and materials sold 34 211 38 757 93 364 103 255
Costs of products and services sold 29 297 104 410 94 962 148 101
Other costs 185 614 455 1 276
Total 149 593 260 607 441 316 515 730
Selling expenses, including: 29 195 66 140 90 073 152 470
cost of product maintenance 2 365 8 677 13 251 31 120
Administrative expenses, including: 56 890 51 300 162 917 111 904
cost of research projects 22 578 4 602 68 496 7 875
Costs of sales 63 508 143 167 188 326 251 356
Total 149 593 260 607 441 316 515 730
72
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 19. Other operating income and expenses
Other operating income
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Tax relief for innovative employees 4 305 4 635 8 859 12 353
Other sales 1 530 1 082 3 018 1 428
Rental income 613 138 1 638 2 294
Subsidies 229 919 689 1 843
Income from re-invoicing 186 131 949 553
Fixed assets and goods for resale received free of charge - - - 168
Release of unused provisions for costs 49 38 62 178
Gains on disposal of non-current assets 15 48 175 73
Damages received - - 538 -
Release of provisions for minimum guarantees - - 66 -
Payments from enforcement officers - - 3 27
Refund of overpaid tax on civil law transactions - - - 94
Reversal of a write-down of expenditure on development
projects in progress
- - - 21 531
Reversal of inventory write-downs - - 777 -
Other 33 421 583 205
Total other operating income 6 960 7 412 17 357 40 747
Other operating expenses
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Cost of sales of other sales 3 018 1 719 3 050 2 214
Cost of rental 663 552 2 116 2 265
Depreciation of investment properties 384 413 1 153 1 341
Costs relating to re-invoicing 186 131 949 553
Donations and charity 21 41 206 445
Scrapping of fixed and intangible assets 2 163 2 3 042
Cost of destruction of materials and goods for resale - - 9 171
VAT written off - 73 - 328
Scrapping of investment properties - - - 737
Irrecoverable receivables - 16 4 70
Other 42 135 55 390
Total other operating expenses 4 316 3 243 7 544 11 556
73
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 20. Finance income and finance costs
Finance income
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Interest income 16 523 10 666 50 744 36 443
on current bank deposits 6 750 5 913 22 615 23 249
on bonds 9 625 4 668 27 959 13 007
on loans 50 85 170 187
other 98 - - -
Other finance income 13 886 49 758 12 622 43 562
gain on disposal of bonds - - - 2 294
reversal of impairment of non-current financial assets - 27 271 - 27 271
net foreign exchange gains - 19 474 - -
settlement and measurement of derivative financial
instruments
13 886 3 013 12 622 13 951
other finance income - - - 46
Total finance income 30 409 60 424 63 366 80 005
Finance costs
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Interest expense 222 200 753 847
on lease contracts 187 200 595 594
on bonds - - - 18
on liabilities to the State Treasury 35 - 158 232
on trade payables - - - 3
Other finance costs 18 415 12 794 16 208 9 946
net foreign exchange losses 16 258 - 12 927 9 654
settlement and measurement of derivative financial
instruments
- 12 696 - -
commission and fees on purchase of bonds 70 71 210 214
loss on redemption of bonds 2 075 - 3 041 -
measurement of private equity interests in the gaming sector 12 27 30 78
Total finance costs 18 637 12 994 16 961 10 793
Net finance income/expense 11 772 47 430 46 405 69 212
74
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 21. Leases of low-value assets and short-term leases
The Group has concluded lease contracts for office equipment (multifunctional photocopiers, kitchen appliances) and residential
premises which potentially meet the recognition criteria for leases under the new IFRS 16. However, the Group considered these
contracts to be short-term leases and leases of low-value assets and decided not to apply the new requirements for leases to these
assets, as permitted by paragraph 5 of the standard. In such cases, lease payments are charged to costs of the period to which
they relate, either on a straight-line basis or in some other systematic way that reflects the distribution of costs over the life of the
contract (information on the cost of these leases incurred in the period from 1 July to 30 September 2024 is included in Note 18).
As at 30 September 2024, 30 June 2024 and 31 December 2023, future payments in respect of irrevocable short-term leases and
leases of low-value assets were as follows:
30.09.2024 30.06.2024 31.12.2023*
Up to 1 year 166 251 440
From 1 year to 5 years 207 213 156
Total 373 464 596
* restated data
Note 22. Issuance, redemption and repayment of debt and equity securities
Issuance of debt securities
Not applicable.
Issuance of equity securities
Specification 30.09.2024 30.06.2024 31.12.2023
Number of shares in thousands 99 911 99 911 99 911
Par value of shares in PLN 1 1 1
Share capital 99 911 99 911 99 911
Note 23. Dividends paid (or declared) and received
During the period from 1 July to 30 September 2024, the Group companies did not pay or receive any dividends.
Note 24. Transactions with related entities
Terms and conditions of transactions with related entities
The terms and conditions of intra-Group transactions were determined on the arm’s length basis. The essence of this principle is
based on the premise that the terms and conditions agreed in transactions between related parties should not differ from those
that would be agreed between independent parties in a comparable situation. Controlled transactions entered into by the related
entities belonging to the CD PROJEKT Group are verified to determine whether the agreed terms of the transactions are similar to
the market terms, based on the recommendations and methods provided for in the OECD Guidelines, as well as in national
legislation.
75
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Transactions with related entities after consolidation eliminations
Sales to related entities Purchases from related entities
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
SUBSIDIARIES
CD PROJEKT RED
Vancouver Studio Ltd.
358 50 1 011 74 3 862 3 251 12 159 13 355
The Molasses Flood LLC 476 82 1 219 84 8 797 9 573 24 870 35 265
CD PROJEKT SILVER Inc. - - - - 548 - 548 -
MEMBERS OF THE MANAGEMENT BOARDS OF THE GROUP COMPANIES AND THE SUPERVISORY BOARD MEMBERS
Adam Kiciński - 1 1 1 - - - -
Piotr Nielubowicz - - 1 - - - - -
Michał Nowakowski - - 2 - - - - -
Adam Badowski 1 1 1 1 - - - -
Piotr Karwowski 2 2 6 5 - - - -
Paweł Zawodny - - - 6 - - - -
Maciej Gołębiewski 1 1 2 1 - - - -
Urszula Jach-Jaki - 1 - 2 - - - -
Maciej Nielubowicz - 1 1 1 - - - -
76
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Receivables from related entities Liabilities to related entities
30.09.2024 30.06.2024 31.12.2023 30.09.2024 30.06.2024 31.12.2023*
SUBSIDIARIES
CD PROJEKT RED
Vancouver Studio Ltd.
3 566 2 421 1 483 2 934 2 343 1 549
The Molasses Flood LLC 8 069 4 580 3 328 5 655 3 554 1 840
MEMBERS OF THE MANAGEMENT BOARDS OF THE GROUP COMPANIES AND THE SUPERVISORY BOARD MEMBERS
Marcin Iwiński - - 1 - - -
Adam Kiciński - - - - - 1
Piotr Nielubowicz - - 2 - - -
Michał Nowakowski 8 - - 1 - -
Adam Badowski 1 - - - - -
Maciej Gołębiewski - - - 1 - -
77
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 25. Unpaid loans or defaults on loan agreements in the cases where no
corrective measures were adopted by the balance sheet date
Not applicable.
78
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 26. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year
Contingent liabilities in respect of guarantees, sureties and collateral
Specification Currency 30.09.2024 30.06.2024 31.12.2023
mBank S.A.
Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000
Bill of exchange agreement Bank guarantee securing a rental contract PLN 427 427 427
National Centre for Research and Development
Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0105/16 PLN 7 711 7 711 7 711
Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0110/16 PLN 3 846 3 846 3 846
Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0112/16 PLN 3 692 3 692 3 692
Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0118/16 PLN 1 358 1 358 1 358
Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0120/16 PLN 1 204 1 204 1 204
Pekao Leasing Sp. z o.o.
Bill of exchange agreement Lease contract 37/1991/21 PLN - - 165
Santander Bank Polska S.A. (formerly: BZ WBK S.A.)
Bill of exchange agreement Framework agreement on financial market transactions PLN 23 500 23 500 23 500
Bank Polska Kasa Opieki Spółka Akcyjna
Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000
BNP Paribas Bank Polska S.A.
Bill of exchange agreement Framework agreement on financial market transactions PLN 26 600 26 600 26 600
79
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 27. Changes in the structure of the Group and the Group companies
during the reporting period
There were no changes of this nature during the reporting period.
Note 28. Agreements that may result in future changes in the proportions of
shares held by shareholders and bondholders
Incentive plans for the years 2023-2027
Based on the resolutions of the Parent Company’s General Meeting of 28 July 2020, two new incentive plans for the financial years
2023-2027 were introduced on that date, replacing the Incentive Plan for 2020-2025: the Incentive Plan A and the Incentive Plan B.
Incentive Plan A
The Incentive Plan A is addressed to persons who are not members of the Management Board of the Parent Company. The
assumptions are that the entitlements in this plan will be granted in each of the financial years 2023-2027 (i.e. in five phases).
A maximum of 1 500 000 entitlements may be granted under the entire Incentive Plan A. The entitlements will be realized
alternatively through: (i) offering participants to subscribe for warrants entitling them to subscribe for an identical number of shares
in the Parent Company, issued as part of the conditional share capital increase, or (ii) offering participants to purchase from the
Parent Company treasury shares acquired by the Parent Company as part of a buy-back carried out for this purpose. Taking up and
exercising the rights from the subscription warrants or, as the case may be, purchasing the Parent Company’s shares by the
participants under the Incentive Plan A will be conditional upon meeting the loyalty criterion (understood as the participants in the
Incentive Plan A remaining in a legal relationship with the Parent Company or its related entity during the vesting period). The price
of taking up or acquiring the Parent Company’s shares as part of executing entitlements under the Plan A will correspond to the
nominal value of the Parent Company’s shares. The vesting period will be 3 years as a minimum in each case.
By the date of publication of this report:
(i) as part of Phase 1 of the Incentive Plan A (in 2023), 100 444 entitlements were granted, of which 91 583 entitlements remain
active;
(ii) as part of Phase 2 of the Incentive Plan A (in 2024), 183 189 entitlements were granted, of which 174 569 entitlements remain
active.
Assumptions made for the valuation of the Incentive Plan A for the years 2023-2027 – Phase 1
Date of vesting CDR volatility ratio Risk-free interest rate
Entitlements granted on 26.05.2023 44% 6.2%
Entitlements granted on 27.05.2023 44% 6.2%
Entitlements granted on 29.05.2023 44% 5.9%
Entitlements granted on 07.06.2023 44% 5.8%
Assumptions made for the valuation of the Incentive Plan A for the years 2023-2027 – Phase 2
Date of vesting CDR volatility ratio Risk-free interest rate
Entitlements granted on 08.03.2024 43% 5.1%
Entitlements granted on 10.03.2024 43% 5.1%
80
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Changes in entitlements granted under the Incentive Plan A for the years 2023-2027 – phases 1 and 2
Specification
01.01.2024 – 30.09.2024
Number of entitlements in pcs.
Unrealized as at the beginning of the period 1 500 000
Granted but not realized as at the beginning of the period 94 051
Granted during the period 183 189
Forfeited during the period* 11 088
Unrealized as at the end of the period 1 500 000
Granted but not realized as at the end of the period 266 152
* All forfeitures by the date of publication of the financial statements for a given period
Incentive Plan B
The Incentive Plan B is addressed to both persons who are members of the Parent Company’s Management Board and persons
who are not members of the Management Board. The assumptions are that the entitlements in this plan will be granted in each of
the financial years 2023-2027 (i.e. in five phases). A maximum of 3 500 000 entitlements may be granted under the entire Incentive
Plan B. The entitlements will be realized alternatively through: (i) offering participants to subscribe for warrants entitling them to
subscribe for an identical number of shares in the Parent Company, issued as part of the conditional share capital increase, or (ii)
offering participants to purchase from the Parent Company treasury shares acquired by the Parent Company as part of a buy-back
carried out for this purpose. Taking up and exercising the rights from the subscription warrants or, as the case may be, purchasing
the Parent Company’s shares by the eligible persons under the Incentive Plan B will be conditional upon the Parent Company
determining that the performance-related condition (for 70% of the entitlements), the market condition (for 30% of the entitlements)
and, in selected cases, the individual conditions and, in each case, the loyalty condition (understood as the participants in the
Incentive Plan A remaining in a legal relationship with the Parent Company or its related entity during the vesting period) have been
met. The base price of subscription for or purchase of the Parent Company’s shares as part of exercising the entitlements under
the Plan B will correspond to the price of the Parent Company’s shares at the close of the last trading session preceding the date
of the relevant resolution on a participant’s inclusion in the plan. The plan provides for the possibility to reduce the price of
subscription for or purchase of the shares with a simultaneous proportional reduction in the number of rights to be exercised by
the participant. The base vesting period corresponds to four consecutive financial years starting from the year in which the relevant
phase commenced (with the possibility of shortening to three financial years for performance-related entitlements in the event of
a possible faster achievement of the four-year performance target over a three-year period).
By the date of publication of this report:
(i) as part of Phase 1 of the Incentive Plan B (in 2023), 662 000 entitlements were granted, of which 656 000 entitlements remain
active;
(ii) as part of Phase 2 of the Incentive Plan B (in 2024), 723 500 entitlements were granted, of which 723 500 entitlements remain
active.
Performance-related condition – 70% of entitlements awarded under a given phase of the Incentive Plan B
The fulfilment of the performance-related condition means achieving, in the relevant vesting period, a specific result understood as
the sum of the consolidated net profits on the continuing operations of the CD PROJEKT Group plus the cost of valuation of
entitlements awarded under the relevant phase of the Incentive Plan B, recognized by the CD PROJEKT Group entities in the same
period. The performance-related condition for entitlements awarded in Phase 1 of the Incentive Plan B for the years 2023-2026 (in
the financial year 2023) is PLN 2 billion, and the performance-related condition for entitlements awarded in Phase 2 of the Incentive
Plan B for the years 2024-2027 (in the financial year 2024) is PLN 3 billion.
For each of the successive phases of the Incentive Plan B starting in the financial years 2025, 2026 and 2027, the performance-
related condition for entitlements awarded in these phases for the relevant periods of four financial years will be determined by
resolutions of the General Meeting of the Parent Company (at the request of the Management Board of the Parent Company).
81
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Market-related condition – 30% of entitlements awarded under a given phase of the Incentive Plan B
The fulfilment of the market-related condition means achieving a change in the Parent Company’s share price on the Warsaw Stock
Exchange (WSE) in such a manner that the change in the level of the Parent Company’s share price expressed as a percentage,
determined on the basis of the Parent Company’s share price at the close of the last trading session of the WSE of the most recent
financial year which is subject to verification for purposes of the performance-related condition referred to above in relation to the
Parent Company’s share price at the close of the last trading session of the WSE in the year preceding the year of the relevant
phase of the Incentive Plan B will be higher than or equal to the change, expressed as a percentage and increased by 10 percentage
points, in the level of the WIG (WSE Index) index in the same period.
Assumptions made for the valuation of the Incentive Plan B for the years 2023-2027 – phase 1
Date of vesting
CDR volatility
ratio
WIG volatility ratio
WIG correlation
ratio
Risk-free interest
rate
Entitlements granted on 26.05.2023 44% 21% 43% 6.1%
Assumptions made for the valuation of the Incentive Plan B for the years 2023-2027 – phase 2
Date of vesting
CDR volatility
ratio
WIG volatility ratio
WIG correlation
ratio
Risk-free interest
rate
Entitlements granted on 08.03.2024 43% 21% 42% 4.9%
Entitlements granted on 10.03.2024 43% 21% 42% 4.9%
Changes in entitlements granted under the Incentive Plan B for the years 2023-2027 – phases 1 and 2
Specification
01.01.2024 – 30.09.2024
Number of entitlements in pcs.
Unrealized as at the beginning of the period 3 500 000
Granted but not realized as at the beginning of the period 656 000
Granted during the period 723 500
Forfeited during the period* -
Unrealized as at the end of the period 3 500 000
Granted but not realized as at the end of the period 1 379 500
* All forfeitures by the date of publication of the financial statements for a given period
82
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 29. Tax settlements
Tax settlements and other areas of activities regulated by the tax law may be subject to inspections by administrative bodies which
are entitled to impose high penalties or sanctions. The lack of reference to established legal regulations in Poland results in
ambiguities and inconsistencies in the binding regulations. Frequent differences of opinion as to the legal interpretation of tax
regulations, both internally within the state bodies and between the state bodies and enterprises, result in areas of uncertainty and
conflict arising. Due to these factors, the tax risk in Poland is considerably higher than that usually existing in countries with more
established tax systems.
In accordance with a general rule, tax settlements may be subject to inspections within five years from the end of the calendar year
in which tax was paid.
Following the fulfilment of the criteria set out in Article 19 of the Act of 30 May 2008 on certain forms of innovation support
(consolidated text, Journal of Laws of 2022, item 2474), the Minister of Development and Technology, by decision No. DNP-
V.4241.23.2024.4 of 4 October 2024, maintained the status of a research and development centre granted to the Company by
decision 4/CBR/18 of 19 June 2018. The status allows the Parent Company to use more broadly the research and development relief
provided for in the Act of 15 February 1992 on corporate income tax (consolidated text, Journal of Laws of 2023, item 2805,
hereinafter: the “CIT Act”).
Starting from the month following the submission of the CIT-8 tax return, the Parent Company takes advantage of a relief in respect
of an innovative employee. As part of the relief, it is possible to deduct the research and development relief which the Parent
Company did not deduct from the tax base in the tax return for the previous tax year. As a result of using tax relief in respect of an
innovative employee, the Parent Company reduces tax advances remitted to the tax office in respect of personal income tax and
flat-rate personal income tax for employees performing research and development projects for the Parent Company. At the same
time, the amount of the research and development relief reported and not deducted is reduced (the reduction is the product of the
personal income tax liability due and the personal income tax rate).
With effect from 1 January 2019, provisions were introduced into the Act on corporate income tax, granting preferential taxation at
the 5% tax rate for qualified income earned by a taxpayer from qualified intellectual property rights. Having met the prerequisites
and formal conditions contained in the said legislation, the Parent Company accounts for income (in respect of selected sources of
income) taking this tax relief into account.
83
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 30. Explanations to the condensed consolidated statement of cash
flows
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Cash and cash equivalents reported in the statement of cash
flows
82 281 236 232 82 281 236 232
Cash and cash equivalents in the balance sheet 82 281 236 232 82 281 236 232
Depreciation and amortization: 3 883 3 271 10 966 9 942
Amortization of intangible assets 1 013 437 2 061 1 580
Amortization of expenditure on development projects 231 101 413 359
Depreciation of property, plant and equipment 2 636 2 730 8 483 7 985
Depreciation of investment properties 3 3 9 18
Foreign exchange (gains)/losses arise on the following items: 13 750 (14 819) 5 579 4 024
Foreign exchange gains/(losses) on measurement of bonds 9 340 (14 246) 3 255 4 298
Foreign exchange gains/(losses) on measurement of private
equity interests in the gaming sector
142 (128) 109 118
Foreign exchange gains/(losses) on measurement of loans
granted as at the balance sheet date
118 (364) 15 (140)
Foreign exchange gains/(losses) losses on measurement of
bank deposits over 3 months
4 254 - 2 314 -
Foreign exchange gains/(losses) on measurement of leases (104) (81) (114) (252)
Interest and shares in profits comprise: (16 238) (10 466) (50 149) (35 831)
Interest on bank deposits (6 750) (5 913) (22 615) (23 249)
Interest on bonds (9 625) (4 668) (27 959) (12 989)
Interest accrued on loans granted (50) (85) (170) (187)
Interest on lease contracts 187 200 595 594
(Gains)/losses on investing activities result from the following
items:
(10 923) (14 501) (5 073) (57 543)
Sale of property, plant and equipment (15) (127) (181) (152)
Net carrying amount of property, plant and equipment - 79 6 79
Net carrying amount of non-current assets scrapped 2 163 2 296
Net carrying amount of scrapped intangible assets and
expenditure on development projects
- - - 2 746
Net carrying amount of investment properties scrapped - - - 737
Reversal of impairment write-downs of property, plant and
equipment, intangible assets and expenditure on
development projects
- - - (21 531)
Release of write-downs of shares in subsidiaries - (27 271) - (27 271)
Settlement and measurement of derivative financial
instruments
(13 067) 12 696 (8 181) (10 301)
Measurement of private equity interests in the gaming sector 12 - 51
Disclosure of property, plant and equipment and intangible
assets
- - - (4)
Commission and fees on purchase of bonds 70 71 210 214
Proceeds from redemption of bonds (22 509) - (41 867) (36 711)
Value of bonds purchased 24 584 - 44 908 34 417
Settlement of lease contracts terminated - (112) - (113)
Change in provisions results from the following items: 4 318 36 413 (24 438) (11 526)
Increase/(Decrease) in provisions for liabilities 8 690 36 089 (20 218) (34 351)
Increase/(Decrease) in provisions for employee benefits (610) 247 2 075 3 001
Increase/(Decrease) in provisions recognized under
expenditure on development projects
(3 762) 77 (6 295) 19 824
(Increase)/Decrease in inventories 70 655 328 5 238
84
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Change in receivables results from the following items: (13 015) (205 052) 93 766 (126 129)
(Increase)/Decrease in current receivables in the balance
sheet
(7 974) (198 161) 86 987 (112 546)
(Increase)/Decrease in non-current receivables in the balance
sheet
- (5) (23) 9
(Increase)/Decrease in prepayments for investment
properties
- 54 - 54
Income tax settled against withholding tax - 5 11 528 14 914
Withholding tax paid abroad (1 865) (9 653) (5 750) (25 612)
Adjustment for current income tax (3 741) 2 488 (3 089) (1 554)
(Increase)/Decrease in prepayments for development
projects
565 (1 085) 4 166 (800)
(Increase)/Decrease in prepayments for property, plant
and equipment and intangible assets
- - (53) (105)
(Increase)/Decrease in receivables in respect of the sale of
property, plant and equipment and intangible assets
- 1 305 - (489)
Change in current liabilities, excluding financial liabilities,
results from the following items:
2 233 17 197 (14 774) 1 768
Increase/(Decrease) in current liabilities in the balance sheet 387 26 302 (6 811) 1 353
Adjustment for current income tax 236 (147) 219 1 970
Increase/(Decrease) in other current financial liabilities 1 149 (5 757) 4 166 (4 657)
Increase/(Decrease) in liabilities in respect of security
deposits
20 61 20 61
Increase/(Decrease) in liabilities resulting from purchase of
property, plant and equipment
343 (3 308) (12 516) 2 455
Increase/(Decrease) in liabilities resulting from purchase of
intangible assets
98 46 148 586
Changes in other assets and liabilities result from the following
items:
9 648 (23 916) 14 824 (32 028)
Change in prepayments and accruals in the balance sheet 9 005 (10 668) 13 976 (20 929)
Increase/(Decrease) in deferred income in the balance sheet 702 (13 188) 1 029 (10 918)
Adjustment for prepayments and deferred costs with
a corresponding entry in liabilities
(59) (60) (181) (181)
“Other adjustments” comprise: 6 617 5 304 18 757 19 002
Costs of the incentive plan 6 474 3 311 16 945 13 451
Measurement of derivative financial instruments (539) (1 164) (307) (1 829)
Amortization and depreciation written off, reported under
cost of sales and other operating expenses
- 83 - 82
Amortization and depreciation reported under cost of sales
and other operating expenses
776 492 2 145 2 036
Accounting for shares in the acquired entity - 32 854 - 32 854
Retained earnings/(Accumulated losses) of the acquired
entity
- (26 979) - (26 979)
Net profit or loss of the acquired entity - (3 653) - -
Deferred tax asset of the acquired entity - (233) - (233)
Net property, plant and equipment and intangible assets
of the acquired entity
- 378 - (228)
Foreign exchange differences on translation (81) 215 (116) (52)
Other adjustments (13) - 90 (100)
85
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 31. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities
01.07.2024 Cash flows
Non-monetary changes
30.09.2024
Takeover of leased
fixed assets
Foreign exchange
gains and losses
Interest accrued
Adoption of
a resolution on
the payment of
dividend
Lease liabilities 21 690 (897) - (104) 187 - 20 876
Total 21 690 (897) - (104) 187 - 20 876
01.07.2023 Cash flows
Non-monetary changes
30.09.2023
Takeover of leased
fixed assets
Foreign exchange
gains and losses
Interest accrued
Adoption of
a resolution on
the payment of
dividend
Lease liabilities 20 307 (679) 2 519 57 200 - 22 404
Total 20 307 (679) 2 519 57 200 - 22 404
86
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
01.01.2024 Cash flows
Non-monetary changes
30.09.2024
Takeover of leased
fixed assets
Foreign exchange
gains and losses
Interest accrued
Adoption of
a resolution on
the payment of
dividend
Lease liabilities 23 309 (2 961) 47 (114) 595 - 20 876
Liabilities to shareholders in
respect of dividend
payment
- (99 911) - - - 99 911 -
Total 23 309 (102 872) 47 (114) 595 99 911 20 876
01.01.2023 Cash flows
Non-monetary changes
30.09.2023
Takeover of leased
fixed assets
Foreign exchange
gains and losses
Interest accrued
Adoption of
a resolution on
the payment of
dividend
Lease liabilities 20 761 (2 484) 3 711 (177) 593 - 22 404
Liabilities to shareholders in
respect of dividend
payment
(99 911) - - - 99 911 -
Total 20 761 (102 395) 3 711 (177) 593 99 911 22 404
87
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 32. Post balance sheet events
On 17 October 2024, in current report no. 22/2024, the Management Board of the Parent Company informed that on the same day,
Mr. Adam Kiciński, following an announcement of which the Parent Company had informed on 5 October of the prior year in current
report no. 39/2023: (i) resigned as member of the Management Board with effect at the end of day on 31 December 2024, and (ii)
confirmed his intention to stand as a candidate for the Parent Company’s Supervisory Board from 2025.
On the same day, in current report no. 23/2024, the Management Board of the Parent Company informed that a meeting of the
Parent Company’s Supervisory Board was held on 17 October 2024. During the meeting:
(i) Mr. Adam Kiciński notified the members of the Supervisory Board of his resignation as member of the Management Board,
effective at the end of 2024, along with his intention to stand as a candidate to the Supervisory Board of the Company;
(ii) in light of the foregoing, Mr. Marcin Iwiński, Chair of the Supervisory Board and eligible shareholder of the Parent Company,
announced his intention to submit a request to convene an Extraordinary General Meeting of the Company, among other things. in
order to consider Mr. Adam Kiciński’s candidature for being a member of the Supervisory Board, effective as from 1 January 2025;
(iii) the members of the Supervisory Board discussed the target composition of the Supervisory Board and, in the course of this
discussion, arrived at the conclusion that, given the foregoing and also considering the applicable legislation governing the
composition of supervisory boards and planned changes therein, along with their intention to enable shareholders to appoint
additional independent members of the Supervisory Board, it would be beneficial for the Parent Company to facilitate the
appointment of a new Supervisory Board;
(iv) as a result of the above, the following members of the Supervisory Board submitted their resignations – all of which become
effective at the end of day on 31 December 2024:
Ms. Katarzyna Szwarc submitted her resignation from the functions of Vice-Chair and Member of the Supervisory Board;
Mr. Michał Bień submitted his resignation from the functions of Member of the Supervisory Board of the Company and Chair
and Member of the Audit Committee;
Mr. Maciej Nielubowicz submitted his resignation from the functions of Secretary and Member of the Supervisory Board and
Member of the Audit Committee;
Mr. Jan Łukasz Wejchert submitted his resignation from the functions of Member of the Supervisory Board and Member of the
Audit Committee.
Also on 17 October 2024, in current report no. 24/2024
, the Management Board of the Parent Company informed that on the same
day Mr. Marcin Iwiński, a shareholder representing more than one twentieth of the share capital, submitted a motion to convene an
Extraordinary General Meeting and to include in the agenda of the said Meeting mainly the following items: (i) voting on the
candidatures of Ms. Beata Cichocka-Tylman, Mr. David Gardner, Mr. Adam Kiciński, and Professor Agnieszka Słomka-Gołębiowska
for members of the Supervisory Board, and (ii) dismissing Mr. Marcin Iwiński from his position as incumbent Member of the
Supervisory Board and his reappointment, together with the remaining candidates, for a new joint four-year term of the Supervisory
Board of the Parent Company beginning on 1 January 2025. The full contents of the said motion, including the curricula vitae and
statements of the candidates, can be found in the current report referred to above.
On 31 October 2024, the Parent Company’s Management Board convened an Extraordinary General Meeting of the Parent
Company for 28 November 2024. The agenda of the General Meeting includes mainly resolutions on the appointment of members
of the Supervisory Board for a new term of office, updating the remuneration of the Supervisory Board members, amendments to
the Articles of Association (§12, §18, §19, §20, §21, §22, §28), amendments to the Regulations of the GSM, and the designation of the
Performance-related Condition for 2025-2028 in the Incentive Plan B at PLN 4 billion of the Group’s consolidated net profit for
2025-2028 in total. The full agenda, including additional information on the participation in the General Meeting, is presented in
current report no. 25/2024. The full text of the draft resolutions and their statements of grounds are also available in
current report
26/2024.
Additional information
5
89
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Litigation pending
During the reporting period, the following material proceedings were pending (as at the date of publication of the financial
statements).
Criminal cases in which CD PROJEKT S.A. has the status of the aggrieved party
Case against private individuals (including former members of the Management Board of Optimus S.A.) for acts to the detriment of
the Company
On 27 October 2016, the Regional Court in Warsaw, in case ref. no. XVIII K 126/09 as a result of the indictment of the Public
Prosecutor’s Office of the Regional Prosecutor’s Office in Warsaw to the Regional Court, passed a sentence convicting Michał L.,
Piotr L. and Michał D., ascribing to them the commission of acts under Article 296 § 1 of the Penal Code and Article 296 § 3 of the
Penal Code and others. The Parent Company acted as an auxiliary prosecutor at first instance (a status it retains until the end of the
proceedings). The scope of the damages awarded under Article 46 of the Polish Penal Code totalled PLN 210 thousand, with the
damage ascertained by the court amounting to at least PLN 16 million according to the operative part of the verdict (this method of
determining damage results from the principles of adjudication in criminal proceedings). The Company appealed against the
judgment, requesting that it be amended, including, inter alia, in the part relating to the amount of damages awarded to the Parent
Company. Appeals were also filed by the defendants’ counsels – against the entire decision and by the prosecutor – against a part
of the judgment. On 26 October 2017, the Court of Appeals overturned the judgment of the Court of First Instance in the case in its
entirety and remitted the case to the Court of First Instance for retrial in its entirety. The Regional Court in Warsaw is currently
examining the case under case number XVIII K 316/17. The Parent Company is acting as an auxiliary prosecutor in the case.
Cases in which CD PROJEKT S.A. has the status of the defendant
Class action complaint against CD PROJEKT S.A. concerning the compliance of technical solutions applied by GOG with the US
Video Privacy Protection Act.
On 6 September 2024, the Company’s Management Board received information that a civil Class Action Complaint against the
Parent Company had been filed in the United States District Court for the Eastern District of New York.
The complaint was filed on behalf of one user and potential other users of the GOG.com digital distribution platform for the video
games (“GOG”) which is owned by GOG sp. z o.o., a subsidiary of the Company, and relates to an alleged breach by GOG sp. z o.o.
of the US Video Privacy Protection Act through the use of Facebook tracking scripts on the GOG.com website for remarketing
purposes without valid user consent, according to the plaintiff. The plaintiff is seeking a judicial determination of whether the use
of certain technical solutions by the GOG platform complies with the US Video Privacy Protection Act and the payment of damages
should the court determine that the breach has occurred. The number of potential plaintiffs who will participate in the case (Class
Members) and, consequently, the total amount of the claims are not yet known.
The lawsuit was effectively served on 10 September 2024. The case is currently at the stage of the so-called motion to dismiss
(a pre-trial stage). The Parent Company and GOG are taking steps to defend their interests and resolve the case.
Litigation involving subsidiaries
Proceedings of GOG sp. z o.o. before the Voivodeship Administrative Court in Kraków
On 19 August 2022, the Head of the Małopolski Customs and Tax Office in Kraków issued a decision against GOG sp. z o.o.,
determining the corporate income tax liability for 2016. The Management Board of GOG sp. z o.o. paid the liability resulting from
the decision received, which amounted to PLN 2 638 thousand, including interest due as at the payment date. Irrespective of the
above, GOG sp. z o.o. disagreed with the assessment of the tax authorities and appealed from the decision on 5 September 2022.
On 22 May 2023, the Head of the Małopolski Customs and Tax Office in Kraków, which also acted as the appeal authority in this
case, issued a decision upholding the contested decision. On 4 July 2023, the Management Board of GOG sp. z o.o., disagreeing
with the position of the tax authority, filed a complaint against the issued decision with the Voivodeship Administrative Court in
Kraków. On 3 October 2023, a hearing was held, as a result of which the Court issued a judgment annulling the decisions of the
Head of the Małopolski Customs and Tax Office of 19 August 2022 and 22 May 2023 and submitted the case for re-examination.
On 29 May 2024, the Head of the Małopolski Customs and Tax Office in Kraków issued a new decision determining the corporate
income tax liability for 2016. The amount of the tax liability was reduced by PLN 116 226 compared with the decision of 19 August
2022. On 26 June 2024, the Management Board of GOG sp. z o.o. disagreed with the assessment of the tax authorities and
appealed against the decision to the Director of the Tax Administration Chamber in Kraków. By the date of publication of this report,
GOG sp. z o.o. had not received any reply from the Director of the Tax Administration Chamber, and the case is at the stage of the
appeal proceedings.
On 25 June 2024, in connection with the sentence of the Voivodeship Administrative Court in Kraków, GOG sp. z o.o. received
PLN 2 578 500 from the First Masovian Tax Office in Warsaw, constituting a tax refund.
90
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Shareholding structure
Shareholders holding directly or indirectly through subsidiaries at least 5% of the total number of
votes at the Parent Company’s General Shareholders Meeting as at the date of publication of the
quarterly report
The Parent Company’s share capital amounts to PLN 99 910 510 and consists of 99 910 510 shares with a nominal value of PLN 1
each. The shareholding structure, including the percentage share in the share capital and at the General Shareholders’ Meeting of
the Parent Company, is updated on the basis of formal notifications received by the Parent Company from the shareholders holding
at least 5% of the total number of votes at the General Shareholders’ Meeting of the Parent Company.
Shareholder
Number of
shares
% share in
share capital
Number of
votes at the
GSM
% of votes at
the GSM
Marcin Iwiński 12 873 520
12.89%
12 873 520 12.89%
Michał Kiciński* 9 989 363 10.00% 9 989 363 10.00%
Piotr Nielubowicz 6 858 717
6.86%
6 858 717 6.86%
Nationale-Nederlanden Powszechne
Towarzystwo Emerytalne S.A. (total for all funds
managed)**
5 417 124 5.42% 5 417 124 5.42%
- including Nationale-Nederlanden Otwarty
Fundusz Emerytalny**
5 030 225 5.03% 5 030 225 5.03%
* In accordance with the last notification
submitted to the Company – of 13 November 2023.
** In accordance with the last notification submitted to the Company – of 12 August 2024.
Changes in the ownership structure of significant blocks of the Parent Company’s shares from the
date of submission of the previous interim report
According to the notifications received by the Parent Company, the only changes that occurred in the ownership of significant
blocks of shares from the date of the previous interim report to the date of publication of this report were changes in the
shareholding and voting rights in the Company held by The Goldman Sachs Group, Inc:
as set out in the notification
of 7 October 2024, as at 1 October 202, the aggregate percentage of The Goldman Sachs Group
Inc.’s voting rights arising from indirectly held shares and other financial instruments was 5.002%, of which 3.53% were votes
attached to other financial instruments (securities subject to lending, swap contracts, call options);
as set out in the notification of 16 October 2024, as at 11 October 2024, the aggregate percentage of The Goldman Sachs
Group, Inc.’s voting rights arising from indirectly held shares and other financial instruments fell below the 5% threshold (4.65%).
The status resulting from the aforementioned notifications and notifications received by the Parent Company at an earlier stage is
presented in the table above.
91
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Parent Company’s shares held by the members of the Management Board and
the Supervisory Board
Changes in the number of shares held by the members of the Management Board and the Supervisory
Board*
Name and surname Position As at 01.01.2024 As at 30.09.2024 As at 26.11.2024
Adam Kiciński
Member of the
Management Board,
Chief Strategy Officer
4 046 001 4 046 001 4 046 001
Piotr Nielubowicz
Member of the
Management Board,
Chief Financial Officer
6 858 717 6 858 717 6 858 717
Adam Badowski
Member of the
Management Board,
Joint Chief Executive
Officer
692 640 692 640 692 640
Michał Nowakowski
Member of the
Management Board,
Joint Chief Executive
Officer
530 290 530 290 530 290
Piotr Karwowski
Member of the
Management Board,
Joint Chief Operating
Officer
108 728 108 728 108 728
Paweł Zawodny
Member of the
Management Board,
Joint Chief Operating
Officer
18 508 18 508 18 508
Marcin Iwiński
Chairman of the
Supervisory Board
12 873 520 12 873 520 12 873 520
Katarzyna Szwarc
Vice-Chair of the
Supervisory Board
10 10 10
Maciej Nielubowicz
Member of the
Supervisory Board
51 51 51
* Based on statements and notifications submitted to the Company
Reference to published estimates
The Group did not publish any estimated data relating to the period presented.
Interim condensed separate financial
statements of CD PROJEKT S.A.
6
93
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed separate income statement
Note
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023*
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023*
Sales revenue 180 627 381 921 524 703 625 242
Sales of products 178 906 380 646 518 573 617 254
Sales of services 274 70 891 356
Sales of goods for resale and materials 1 447 1 205 5 239 7 632
Cost of sales of products, services, goods for resale
and materials
26 293 107 298 84 383 157 441
Costs of products and services sold 25 029 106 104 79 389 149 521
Cost of goods for resale and materials sold 1 264 1 194 4 994 7 920
Gross profit/(loss) on sales 154 334 274 623 440 320 467 801
Selling expenses 18 459 52 873 63 012 121 164
Administrative expenses, including: 56 634 47 963 163 991 102 596
cost of research projects 22 578 4 602 68 496 7 875
Other operating income 7 127 7 578 16 129 41 307
Other operating expenses 4 495 3 591 7 822 12 094
(Impairment)/reversal of impairment
of financial instruments
4 (5) 2 (1)
Operating profit/(loss) 81 877 177 769 221 626 273 253
Finance income 29 555 60 161 59 089 78 880
Finance costs 17 298 12 984 12 530 6 316
Profit/(loss) before tax 94 134 224 946 268 185 345 817
Income tax A 14 496 29 933 19 092 59 437
Net profit /(loss) 79 638 195 013 249 093 286 380
Net earnings/(loss) per share (in PLN)
Basic for the reporting period 0.80 1.95 2.49 2.85
Diluted for the reporting period 0.79 1.95 2.48 2.85
* restated data
94
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed separate statement of
comprehensive income
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Net profit/(loss) 79 638 195 013 249 093 286 380
Other comprehensive income subject to reclassification to
gains or losses after specific conditions have been met
3 664 (479) 3 340 (142)
Measurement of derivative financial instruments - fair value
through other comprehensive income, taking into account
the tax effect
3 664 (479) 3 340 (142)
Other comprehensive income not subject to reclassification
to gains or losses
- - - -
Total comprehensive income 83 302 194 534 252 433 286 238
Interim condensed separate statement of financial
position
Note 30.09.2024 30.06.2024 31.12.2023
NON-CURRENT ASSETS 1 466 929 1 495 628 1 416 032
Property, plant and equipment 234 154 214 226 179 132
Intangible assets 67 521 68 470 68 867
Expenditure on development projects 628 047 583 016 524 472
Investment properties 33 106 33 482 34 245
Goodwill C 49 168 49 168 49 168
Investments in subordinated entities G 62 641 61 805 57 229
Prepayments and deferred costs 4 221 4 569 4 913
Other financial assets G 340 243 426 048 455 907
Deferred tax assets A 47 428 54 447 41 723
Other receivables F,G 400 397 376
CURRENT ASSETS 1 211 036 1 076 569 1 101 889
Inventories 3 248 3 319 3 576
Trade receivables F,G 79 888 78 896 204 658
Current income tax receivable 9 508 13 247 1 069
Other receivables F 74 644 57 860 52 031
Prepayments and deferred costs 9 473 11 946 10 148
Other financial assets G 531 087 457 016 362 719
Bank deposits over 3 months G 461 531 340 845 338 205
Cash and cash equivalents G 41 657 113 440 129 483
TOTAL ASSETS
2 677 965 2 572 197 2 517 921
95
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Note 30.09.2024 30.06.2024 31.12.2023
EQUITY 2 536 532 2 446 676 2 366 855
Share capital 11,22* 99 911 99 911 99 911
Supplementary capital 2 025 642 2 025 642 1 681 466
Share premium 116 700 116 700 116 700
Other reserves 45 186 34 965 24 691
Retained earnings / (Accumulated losses) - - (30 618)
Net profit (loss) for the period 249 093 169 458 474 705
NON-CURRENT LIABILITIES 21 773 34 538 37 094
Other financial liabilities G 17 075 17 297 18 379
Other liabilities 2 334 2 374 2 494
Deferred income 1 822 1 989 2 315
Provision for retirement and similar benefits 497 497 497
Other provisions B 45 12 381 13 409
CURRENT LIABILITIES 119 660 90 983 113 972
Other financial liabilities G 2 018 3 140 2 579
Trade payables G 34 794 28 529 26 400
Other liabilities 4 490 4 667 7 099
Deferred income 7 970 6 375 6 887
Provision for retirement and similar benefits 7 423 8 209 6 414
Other provisions B 62 965 40 063 64 593
TOTAL EQUITY AND LIABILITIES 2 677 965 2 572 197 2 517 921
* Detailed information on changes in the items are presented in the relevant notes to the interim condensed consolidated financial
statements.
96
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed separate statement of changes in equity
Share capital
Supplementary
capital
Share premium Treasury shares Other reserves
Retained
earnings /
(Accumulated
losses)
Net profit (loss)
for the period
Total equity
01.01.2024 – 30.09.2024
Equity as at 01.01.2024 99 911 1 681 466 116 700 - 24 691 444 087 - 2 366 855
Costs of the incentive plan - - - - 17 155 - - 17 155
Payment of dividend - - - - - (99 911) - (99 911)
Appropriation of the net profit/offset of
loss
- 344 176 - - - (344 176) - -
Total comprehensive income - - - - 3 340 - 249 093 252 433
Equity as at 30.09.2024 99 911 2 025 642 116 700 - 45 186 - 249 093 2 536 532
97
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Share capital
Supplementary
capital
Share premium Treasury shares Other reserves
Retained
earnings /
(Accumulated
losses)
Net profit (loss)
for the period
Total equity
01.01.2023 – 31.12.2023
Equity as at 01.01.2023 100 771 1 539 437 116 700 (99 993) 3 777 341 073 - 2 001 765
Corrections of errors - - - - - (1 938) - (1 938)
Equity, as adjusted 100 771 1 539 437 116 700 (99 993) 3 777 339 135 - 1 999 827
Costs of the incentive plan - - - - 16 776 - - 16 776
Payment of dividend - - - - - (99 911) - (99 911)
Appropriation of the net profit/offset of
loss
- 241 162 - - - (241 162) - -
Redemption of Treasury shares (860) (99 133) - 99 993 - - - -
Retained earnings / (Accumulated losses)
of the acquired entity
- - - - - (28 680) - (28 680)
Total comprehensive income - - - - 4 138 - 474 705 478 843
Equity as at 31.12.2023 99 911 1 681 466 116 700 - 24 691 (30 618) 474 705 2 366 855
98
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Share capital
Supplementary
capital
Share premium Treasury shares Other reserves
Retained
earnings /
(Accumulated
losses)
Net profit (loss)
for the period
Total equity
01.01.2023 – 30.09.2023
Equity as at 01.01.2023 100 771 1 539 437 116 700 (99 993) 3 777 341 073 - 2 001 765
Corrections of errors - - - - - (1 938) - (1 938)
Equity, as adjusted 100 771 1 539 437 116 700 (99 993) 3 777 339 135 - 1 999 827
Costs of the incentive plan - - - - 13 816 - - 13 816
Payment of dividend - - - - - (99 911) - (99 911)
Appropriation of the net profit/offset of
loss
- 241 162 - - - (241 162) - -
Redemption of Treasury shares (860) (99 133) - 99 993 - - - -
Retained earnings / (Accumulated losses)
of the acquired entity
- - - - - (28 680) - (28 680)
Total comprehensive income - - - - (142) - 286 380 286 238
Equity as at 30.09.2023 99 911 1 681 466 116 700 - 17 451 (30 618) 286 380 2 171 290
99
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Interim condensed separate statement of cash flows
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
OPERATING ACTIVITIES
Net profit/(loss) 79 638 195 013 249 093 286 380
Total adjustments: 20 107 (126 936) 132 989 (96 315)
Depreciation and amortization of property, plant and
equipment, intangible assets, expenditure on development
projects and investment properties
3 229 2 903 9 355 8 738
Amortization of development projects recognized as cost
of goods sold
26 372 93 938 79 115 137 155
Foreign exchange (gains)/losses 13 862 (14 819) 5 635 4 024
Interest and shares in profits (15 818) (10 247) (49 117) (35 465)
(Gains)/losses on investing activities (10 919) (14 498) (5 066) (60 459)
Increase/(Decrease) in provisions 6 017 34 833 (20 277) (11 696)
(Increase)/Decrease in inventories 70 655 328 2 423
(Increase)/Decrease in receivables (19 078) (215 772) 100 493 (135 714)
Increase/(Decrease) in liabilities, excluding loans
and borrowings
6 554 1 652 (6 291) (12 937)
Change in other assets and liabilities 4 188 (11 621) 1 777 (13 166)
Other adjustments 5 630 6 040 17 037 20 782
Cash from operating activities 99 745 68 077 382 082 190 065
Income tax expense 12 632 20 280 13 343 33 825
Withholding tax paid abroad 1 864 9 653 5 749 25 612
Income tax (paid)/refunded (1 872) - (27 487) (21 158)
Net cash from operating activities 112 369 98 010 373 687 228 344
100
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
INVESTING ACTIVITIES
Inflows 232 108 144 600 723 195 564 987
Sale of intangible assets and property, plant and
equipment
11 127 170 149
Repayment of loans granted 325 1 002 617 1 002
Expiry of bank deposits over 3 months 167 391 124 680 593 005 454 650
Redemption of bonds 47 487 - 76 840 56 411
Interest on bonds 4 391 1 637 11 927 8 116
Interest received on deposits 6 313 5 684 21 527 22 873
Inflows from execution of forward contracts 6 128 11 470 18 911 21 743
Other inflows from investing activities 62 - 198 43
Outflows 415 550 179 409 1 082 408 746 203
Acquisition of intangible assets and property, plant
and equipment
26 568 9 275 61 436 37 559
Expenditure on development projects 64 616 64 681 170 677 226 267
Expenditure on intangible assets 13 345 224 724
Acquisition of investment properties and capitalization
of expenditure
11 57 22 155
Loans granted - - - 4 215
Purchase of shares in a subsidiary - - - 440
Contribution to the capital of a subsidiary - - 3 193 3 053
Purchase of bonds and cost of their purchase 32 011 34 246 128 211 93 220
Placement of bank deposits over 3 months 292 331 70 805 718 645 380 570
Net cash from investing activities (183 442) (34 809) (359 213) (181 216)
FINANCING ACTIVITIES
Inflows 6 1 15 31
Settlement of lease receivables 5 1 12 30
Interest received 1 - 3 1
Outflows 716 595 102 315 102 062
Dividends and other payments to shareholders - - 99 911 99 911
Payment of lease liabilities 545 405 1 862 1 566
Interest received 171 190 542 585
Net cash from financing activities (710) (594) (102 300) (102 031)
Net increase/(decrease) in cash and cash equivalents (71 783) 62 607 (87 826) (54 903)
Change in cash and cash equivalents in the balance
sheet
(71 783) 62 607 (87 826) (54 903)
Cash and cash equivalents as at the beginning of the
period
113 440 119 563 129 483 237 073
Cash and cash equivalents as at the end of the period 41 657 182 170 41 657 182 170
101
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Explanations to the condensed separate statement of cash flows
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
“Other adjustments” comprise: 5 630 6 040 17 037 20 782
Costs of the incentive plan 5 722 3 055 14 816 12 594
Measurement of derivative financial instruments (809) - - -
Amortization and depreciation written off, reported under
cost of sales and other operating expenses
- 125 - 125
Amortization and depreciation reported under cost of sales
and other operating expenses
717 494 2 099 1 994
Accounting for shares in the acquired entity - 32 854 - 35 754
Retained earnings/(Accumulated losses) of the acquired
entity
- (26 979) - (28 680)
Net profit or loss of the acquired entity - (3 109) - -
Deferred tax asset of the acquired entity - (233) - (233)
Net property, plant and equipment and intangible assets
of the acquired entity
- (167) - (772)
Other adjustments - - 122 -
Assumption of comparability of the financial
statements and consistency of accounting policies
The accounting policies applied in these interim condensed separate financial statements, material judgments made by the
Management Board with regard to the accounting policies applied by the Company and the main sources of estimating uncertainties
are consistent, in all material respects, with the policies adopted for preparing the annual financial statements of CD PROJEKT S.A.
for 2023, with the exception of changes in the accounting policies and presentation changes described below. These interim
condensed financial statements should be read in conjunction with the financial statements for the year ended 31 December 2023.
Changes in accounting policies
Changes in accounting policies relating to the Company are the same as those described in the section Comparability of the
financial statements and consistency of accounting policies of the consolidated financial statements for the period from 1 July to
30 September 2024.
Presentation changes
In these interim condensed separate financial statements for the period from 1 July to 30 September 2024, changes were
introduced in the presentation of selected financial data. In order to ensure comparability of the financial data, the presentation of
the data for the periods from 1 July to 30 September 2023 and from 1 January to 30 September 2023 was changed in the reporting
period. The data is presented after the following adjustments:
In the income statement for the period from 1 July to 30 September 2023 and in the income statement for the period from
1 January to 30 September 2023, the Company began presenting the costs of research projects as a separate item of
Administrative expenses.
The change is of a purely presentational nature and has not affected the Net profit or loss and Equity.
102
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Notes to the separate financial statements of
CD PROJEKT S.A.
A. Deferred tax
Deductible temporary differences underlying the deferred tax asset
31.12.2023
Differences affecting
the deferred tax
recognized in the
profit or loss
30.09.2024
Provision for other employee benefits 4 979 (135) 4 844
Provision for costs of performance-related and
other remuneration
49 197 (19 519) 29 678
Foreign exchange losses 37 629 (34 108) 3 521
Difference between the carrying and tax amount
of expenditure on development projects
22 053 1 144 23 197
Salaries and wages and social security payable
in future periods
22 4 26
Other provisions 42 351 (3 768) 38 583
Tax value of leased non-current assets 20 957 (1 864) 19 093
Research and development relief 221 546 9 024 230 570
Prepayments recognized as revenue for tax
purposes
4 979 (812) 4 167
Total deductible differences, including: 403 713 (50 034) 353 679
taxed at 5% 130 487 (67 641) 62 846
taxed at 19% 273 226 17 607 290 833
Deferred income tax assets 58 438 (37) 58 401
103
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Taxable temporary differences underlying the deferred tax provision
31.12.2023
Differences affecting
the deferred tax
recognized in the
profit or loss
30.09.2024
Difference between the net carrying amount and
tax amount of property, plant and equipment
and intangible assets
20 754 614 21 368
Current period revenue invoiced in the
subsequent period/accrued income
191 844 (117 690) 74 154
Foreign exchange gains 134 97 231
Difference between the carrying and tax amount
of expenditure on development projects
48 205 (13 269) 34 936
Tax value of leased non-current assets 21 068 (2 161) 18 907
Other - 49 49
Total taxable differences, including: 282 005 (132 360) 149 645
taxed at 5% 263 326 (138 623) 124 703
taxed at 19% 18 679 6 263 24 942
Deferred tax provisions 16 715 (5 742) 10 973
The deferred part of the income tax was determined either at the corporate income tax rate of 19% for the tax base corresponding
to income from other sources, or at the rate of 5% for the tax base corresponding to income from qualifying intellectual property
(the so-called IP BOX). When determining the appropriate tax rate for temporary differences, the Company relied on forecasts of
which tax base will give rise to the realization of the temporary differences recognized.
Net deferred tax assets/provisions
30.09.2024 30.06.2024 31.12.2023
Deferred tax assets 58 401 65 015 58 438
Deferred tax provisions 10 973 10 568 16 715
Income tax expense recognized in the income statement
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
Current income tax, including: 7 477 6 355 24 797 29 874
withholding tax paid abroad 1 864 9 653 5 749 25 612
Change in deferred tax 7 019 23 578 (5 705) 29 563
Income tax expense recognized in the income statement 14 496 29 933 19 092 59 437
104
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
B. Other provisions
30.09.2024 30.06.2024 31.12.2023*
Provision for liabilities, including: 63 010 52 444 78 002
provision for costs of the audit and review of the financial
statements
92 103 166
provision for costs of external services 17 059 15 060 11 525
provision for costs of performance-related and other remuneration 29 679 20 200 49 198
provision for other costs 16 180 17 081 17 113
Total, including: 63 010 52 444 78 002
current 62 965 40 063 64 593
non-current 45 12 381 13 409
* restated data
Change in other provisions
Provision for costs of
performance-related
and other
remuneration
Other provisions Total
As at 01.01.2024 49 198 28 804 78 002
Provisions recorded during the year 29 679 96 424 126 103
Provisions utilized/released 49 198 91 897 141 095
As at 30.09.2024, including: 29 679 33 331 63 010
current 29 679 33 286 62 965
non-current - 45 45
105
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
C. Goodwill
During the period from 1 July to 30 September 2024, there were no changes in goodwill.
D. Business combinations
No business combinations of the Group entities took place in the reporting period.
E. Dividends paid (or declared) and received
During the period from 1 July to 30 September 2024, the Group companies did not pay or receive any dividends.
F. Trade and other receivables
30.09.2024 30.06.2024 31.12.2023
Trade and other receivables, gross 155 008 137 234 257 144
Write-downs 76 81 79
Trade and other receivables, net 154 932 137 153 257 065
from related entities 13 744 6 705 18 478
from other entities 141 188 130 448 238 587
Changes in write-downs of receivables
Trade
receivables
Other
receivables
Total
OTHER ENTITIES
Write-downs as at 01.01.2024 79 - 79
Increases, including: 1 - 1
write-downs recognized for overdue and disputed receivables 1 - 1
Decreases, including: 4 - 4
reversal of write-downs 4 - 4
Write-downs as at 30.09.2024 76 - 76
106
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Current and overdue trade receivables as at 30.09.2024
Total Not overdue
Overdue, in days
1 – 60 61 – 90 91 – 180 181 – 360 >360
RELATED ENTITIES
gross receivables 5 904 5 904 - - - - -
default ratio 0% 0% 0% 0% 0% 0%
write-down resulting
from the ratio
- - - - - - -
write-down
determined
individually
- - - - - - -
total expected credit
losses
- - - - - - -
Net receivables 5 904 5 904 - - - - -
Total Not overdue
Overdue, in days
1 – 60 61 – 90 91 – 180 181 – 360 >360
OTHER ENTITIES
gross receivables 74 060 73 146 336 502 - - 76
default ratio 0% 0% 0% 0% 0% 0%
write-down resulting
from the ratio
- - - - - - -
write-down
determined
individually
76 - - - - - 76
total expected credit
losses
76 - - - - - 76
Net receivables 73 984 73 146 336 502 - - -
Total
gross receivables 79 964 79 050 336 502 - - 76
impairment write-
downs
76 - - - - - 76
Net receivables 79 888 79 050 336 502 - - -
107
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Other receivables
30.09.2024 30.06.2024 31.12.2023
Other gross receivables, including: 75 044 58 257 52 407
tax receivables other than corporate income tax 52 735 46 470 45 998
prepayments for inventories 15 493 5 554 3 700
prepayments for development projects 6 339 5 774 2 173
security deposits 435 431 417
prepayments for property, plant and equipment and intangible assets 20 20 77
settlements with the members of the Management Board 9 - 3
settlements with employees 8 1 23
other 5 7 16
Write-downs - - -
Other net receivables, including: 75 044 58 257 52 407
current 74 644 57 860 52 031
non-current 400 397 376
108
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
G. Information on financial instruments
Fair values and hierarchy of specific classes of financial instruments
The Management Board of the Company has analysed specific classes of financial instruments. Based on the analysis, it was
concluded that the carrying amounts of the instruments do not differ materially from their fair values as at both 30 September 2024,
30 June 2024 and 31 December 2023.
30.09.2024 30.06.2024 31.12.2023
LEVEL 1
Assets measured at fair value
Assets measured at fair value through other comprehensive income 224 231 229 320 224 485
bonds issued by or secured with a guarantee of foreign governments
- EUR
22 025 18 957 21 831
bonds issued by or secured with a guarantee of foreign governments
- USD
202 206 210 363 202 654
LEVEL 2
Assets measured at fair value through profit or loss
Derivatives 7 952 1 014 18 683
currency forwards - EUR 455 516 1 161
currency forwards - USD 7 497 498 17 522
Private equity interests in the gaming sector 3 379 3 533 3 518
private equity interests in the gaming sector - SEK 947 948 980
private equity interests in the gaming sector - USD 2 432 2 585 2 538
Liabilities measured at fair value through profit or loss
Derivatives - 805 -
currency forwards - JPY - 805 -
Financial instruments measured at fair value are classified according to a three-level fair value hierarchy:
Level 1 – quoted prices in active markets for identical assets or liabilities.
Level 2 – fair value based on observable market data.
Level 3 – fair value based on market data that is not observable on the market.
109
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Financial assets – classification and measurement
30.09.2024 30.06.2024 31.12.2023
Financial assets measured at amortized cost 1 219 244 1 182 775 1 244 662
Other non-current receivables 400 397 376
Trade receivables 79 888 78 896 204 658
Cash and cash equivalents 41 657 113 440 129 483
Bank deposits over 3 months 461 531 340 845 338 205
Treasury bonds and bonds guaranteed by the State Treasury 633 203 646 177 568 715
Loans granted 2 565 3 020 3 225
Financial assets measured at cost 62 641 61 805 57 229
Investments in subordinated entities 62 641 61 805 57 229
Assets measured at fair value through other comprehensive income 224 231 229 320 224 485
Bonds issued by or secured with a guarantee of foreign
governments
224 231 229 320 224 485
Financial assets at fair value through profit or loss 11 331 4 547 22 201
Derivative financial instruments 7 952 1 014 18 683
Private equity interests in the gaming sector 3 379 3 533 3 518
Total financial assets 1 517 447 1 478 447 1 548 577
Financial liabilities – classification and measurement
30.09.2024 30.06.2024 31.12.2023
Financial liabilities measured at amortized cost 53 887 48 161 47 358
Trade payables 34 794 28 529 26 400
Other financial liabilities 19 093 19 632 20 958
Financial liabilities at fair value through profit or loss - 805 -
Derivative financial instruments - 805 -
Total financial liabilities 53 887 48 966 47 358
In accordance with the requirements of IFRS 9 Financial Instruments, the Company has analysed the business model for managing
financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio, and concluded
that:
the purpose of investments in domestic and foreign Treasury bonds and domestic and foreign bonds guaranteed by the
governments is to hold them to maturity and to collect contractual cash flows;
investment mandates for managing the foreign bonds portfolio (bonds issued by or secured with a guarantee of foreign
governments) allow selling bonds before maturity as part of the adopted strategy;
all bonds purchased meet the SPPI test.
As a result of the analysis conducted, the purchased bonds were classified into two financial asset management models which
differ in terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury
are measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds and foreign bonds
guaranteed by governments are measured at fair value through other comprehensive income, because of the investment mandate
which allows the possibility of the portfolio being managed by an Asset Manager.
In accordance with the requirements of IFRS 13 Fair Value Measurement, the Company has analysed the valuation of the financial
instruments measured at amortized cost in the separate statement of financial position in order to determine their fair values and
their classification in the fair value hierarchy.
Listed debt securities were classified as Level 1. These are State Treasury Bonds and bonds secured with a guarantee by the State
Treasury, the fair value of which was determined on the basis of the market valuation provided by a brokerage house under the
applicable brokerage services agreement.
110
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
30.09.2024 30.06.2024 31.12.2023
LEVEL 1
Fair value of assets measured at amortized cost
634 315 643 238 565 473
Treasury bonds and bonds guaranteed by the State Treasury 634 315 643 238 565 473
Other items of financial assets and financial liabilities measured at amortized cost were classified as Level 3.
With regard to equity interests in other entities, the Company estimates the fair values of the shares held using the method which
consists in forecasting future cash flows generated by the relevant cash generating unit and requires determining a discount rate
to be used to calculate the present value of these cash flows. In justified cases, the Company assumes a historical cost as an
acceptable approximation of the fair value.
The Company did not measure the fair values of trade receivables and payables, cash and cash equivalents, bank deposits over
3 months or loans granted with variable interest rates, because their carrying amounts are considered by the Company to be
a reasonable approximation of their fair values.
There were no movements between the levels in the fair value hierarchy in the reporting period or in the comparative period.
111
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
H. Transactions with related entities
Sales to related entities Purchases from related entities
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
01.07.2024 –
30.09.2024
01.07.2023 –
30.09.2023
01.01.2024 –
30.09.2024
01.01.2023 –
30.09.2023
SUBSIDIARIES
GOG sp. z o.o. 3 157 23 313 11 481 27 330 49 386 230 764
CD PROJEKT RED Inc. 141 14 544 201 11 576 6 560 32 505 14 449
CD PROJEKT RED
Vancouver Studio Ltd.
72 6 152 29 3 826 3 251 12 092 13 355
The Molasses Flood LLC 36 1 85 2 7 993 9 488 22 590 35 178
CD PROJEKT SILVER Inc. - - - - 548 - 548 -
MANAGEMENT BOARD OF THE COMPANY AND SUPERVISORY BOARD MEMBERS
Adam Kiciński - 1 1 1 - - - -
Piotr Nielubowicz - - 1 - - - - -
Michał Nowakowski - - 2 - - - - -
Adam Badowski 1 1 1 1 - - - -
Paweł Zawodny - - - 6 - - - -
Maciej Nielubowicz - 1 1 1 - - - -
112
Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Receivables from related entities Liabilities to related entities
30.09.2024 30.06.2024 31.12.2023 30.09.2024 30.06.2024 31.12.2023*
SUBSIDIARIES
GOG sp. z o.o. 2 911 3 129 16 013 28 77 178
CD PROJEKT RED Inc. 2 469 222 1 040 6 023 3 835 2 802
CD PROJEKT RED
Vancouver Studio Ltd.
3 388 2 109 1 422 2 906 2 321 1 549
The Molasses Flood LLC 7 532 4 265 3 225 5 144 2 976 1 704
MANAGEMENT BOARD OF THE COMPANY AND SUPERVISORY BOARD MEMBERS
Marcin Iwiński - - 1 - - -
Adam Kiciński - - - - - 1
Piotr Nielubowicz - - 2 - - -
Michał Nowakowski 8 - - 1 - -
Adam Badowski 1 - - - - -
* restated data
113
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Statement of the Management Board of the Parent
Company
On the fairness of preparation of the interim condensed consolidated financial statements
In accordance with the requirements of the Regulation of the Minister of Finance of 29 March 2018 on current and periodical
information submitted by issuers of securities and conditions for considering equivalent the information required under the
legislation of a non-Member State, the Management Board of the Parent Company declares that, to the best of its knowledge, these
interim condensed consolidated financial statements and comparative data have been prepared in accordance with the accounting
policies applicable in the CD PROJEKT Group and that they reflect the Group’s financial position and its results of operations in
a true, fair and clear manner.
These interim condensed consolidated financial statements have been prepared in accordance with the International Financial
Reporting Standards (IFRS) endorsed by the European Union, published and effective as at 1 January 2024, and to the extent not
governed by the said standards, in accordance with the Accounting Act of 29 September 1994 and the implementing legislation
issued on the basis thereof and to the extent required by the Regulation of the Minister of Finance of 29 March 2018 on current and
periodical information submitted by issuers of securities and conditions for considering equivalent the information required under
the legislation of a non-Member State.
The entity authorized to review the fairness of preparation of interim condensed consolidated
financial statements
On 4 July 2024, the Supervisory Board of the Parent Company selected Grant Thornton Polska Prosta spółka akcyjna with its
registered office in Poznań, as recommended by the Audit Committee, as auditor to carry out the review of the semi-annual and the
audit of the annual financial statements of the Company and its Group for 2024 and 2025. Grant Thornton Polska Prosta spółka
akcyjna has been entered on the list of audit firms maintained by the Polish Agency for Audit Oversight with the number 4055.
114
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2024
(all amounts in PLN thousand, unless stated otherwise)
The attached notes are an integral part of these financial statements.
Approval of the financial statements
This report for the period from 1 July to 30 September 2024 was signed and approved for publication by the Management Board
of CD PROJEKT S.A. on 26 November 2024.
Warsaw, 26 November 2024
Adam Kiciński Piotr Nielubowicz Adam Badowski
Member of the Management Board Member of the Management Board Member of the Management Board
Michał Nowakowski Piotr Karwowski Paweł Zawodny
Member of the Management Board Member of the Management Board Member of the Management Board
Jeremiah Cohn Krystyna Cybulska
Member of the Management Board Chief Accountant
