CD Projekt SA reported on Monday that its profits had fallen by more than half in the first quarter a year earlier, with the main game “Cyberpunk 2077” being knocked out of Sony’s PlayStation store and a company official said it would continue to impact the results.
The CD Project did not say how many units of “Cyberpunk 2077” it sold in the quarter. Piotr Nielubowicz, the company’s chief financial officer, said in a conference call that about 60 percent of product sales in the first quarter came from Cyberpunk sales, without giving details.
Analysts said it is likely to have low sales due to the lack of a Cyberpunk PlayStation store and the release of a major patch in late March.
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“The overall situation has not changed since we returned to the Sony store. One of the most important markets for us is not available and we are now generating sales on PC / digital channels,” a company official said at the conference.
Net income fell 64.7% to 32.5 million zlotys in the first quarter, below analysts ’expected 80lbn zlotys, driven by Cyberpunk 2077 development spending and amortization of gambling repairs. Revenue fell by 2% to 197.6 million zlotys ($ 53.94 million).
Sales costs rose by 79.6% in the quarter to 62.1 million zlotys.
Given the commercialization of Cyberpunk, the CD Project expects to begin high-budget parallel development from 2022, as well as the search for Merger and acquisition opportunities.
The growth in future sales, however, depends on the ability of Cyberpunk players to participate again. In the second part he confirmed his intentions to publish downloadable content and upgrade it to second-generation Cyberpunk and The Witcher 3 consoles.
Last year, the company’s shares reached a maximum of 464.2 zlotys before the launch of Cyberpunk, but lost more than 60% of their value.
“Although the results are weaker than expected, we believe a large portion of the quarter-related negativity is already priced out,” Credit Suisse analysts said in a note.
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