CD Projekt H1 revenue sees a 14% drop
The firm also experienced a 20% decrease in net profit
CD Projekt experienced a decrease in its overall sales revenue and net profit during the first half of 2023, its latest earnings report showed.
The Polish games firm reported sales revenue of 325.2 million PLN ($79.5 million), down 14% year-on-year compared to 377.9 million PLN ($82.2 million) made in the first half of 2022.
Its net profit was 91.3 million PLN ($22.1 million), a decrease of 20% year-on-year compared to 113.7 million PLN ($27.6 million) produced in the same period last year.
The CD Projekt Group cited there being no releases during H1 for the dip in sales revenue. Instead, the firm focused on preparing for the launch of the upcoming Cyberpunk 2077 Phantom Liberty DLC.
"As a result, our sales revenue compared to last year was naturally lower," CFO Piotr Nielubowicz said.
In July, CD Projekt Red laid off 100 people as a result of "several deep transformations" within the company. The firm stated the "provisions for costs relating to termination of employment contracts (including costs of severance pay)" is estimated to be 4.5 million PLN ($1.1 million), which will be "charged to the net profit or loss in the third quarter of 2023."
CEO Adam Kiciński provided insight into the restructuring process, including how the development teams have evolved from December 31, 2021 to July 31, 2023. The majority of developers have been working on Phantom Liberty up until launch, while the team working on the next Witcher game has increased substantially over the past year.
Development on the unannounced Witcher multiplayer has decreased, and the "composition of the team has changed — mainly on The Molasses Flood's side," Kiciński said. The studio experienced a round of layoffs earlier this year.
As for the Gwent team, it will "continue to gradually decrease in size till the end of the year." The remaining 30 employees working on the game will either be moved to other projects or "part ways with CD Projekt Red."
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