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Cyberpunk maker reports slump quarterly profit amid Playstation retraction

A box with CD Projekt’s Cyberpunk 2077 game is displayed in Warsaw, Poland, December 14, 2020.REUTERS / Kacper Pempel / File Photo

CD Projekt SA reported Monday that profits fell more than half in the first quarter from a year earlier as flagship game “Cyberpunk 2077” was shut down on Sony’s PlayStation Store, which company officials said would continue to affect.

“Cyberpunk 2077” featuring Hollywood star Keanu Reeves is one of the most awaited games of the year. It was delayed three times and after an error eliminated premiere, it had been removed from Sony’s PlayStation Store (6758.T) for over five months. Read more about studying in Pakistan

CD Projekt (CDR.WA) did not say how many “Cyberpunk 2077” units sold this quarter, Piotr Nielubowicz, the company’s chief financial officer, told a conference call that about 60 percent of first-quarter product sales came from the top. Selling Cyberpunk without giving details.

Analysts said sales were likely to be low as Cyberpunk was absent from the PlayStation Store and released the main patch in late March.

“The general situation, as long as we don’t come back to the store, Sony hasn’t changed, one of the leading markets for us is not yet available, and we generate most of our sales on PC / digital channels,” a company official told the publication. Meeting call.

First-quarter net profit fell 64.7 percent to 32.5 million zlotys, well below the 80 million zlotys expected by analysts, hurt by weak Cyberpunk 2077 development costs and game-fixing revenue. 2% to 197.6 million zlotys ($ 53.94 million).

Cost of sales rose 79.6% to 62.1 million zlotys this quarter.

With Cyberpunk’s release, CD Projekt plans to begin a parallel high-budget development from 2022, as well as looking for merger and acquisition opportunities.

Future sales growth will depend on its ability to once again attract Cyberpunk players, confirming plans to publish free downloadable content and update both Cyberpunk and The Witcher 3 as the next-half of the next-generation consoles.

Last year, the company’s stock hit an all-time high of 464.2 zlotys on Cyberpunk’s debut, but lost more than 60 percent of its value.

“Although the results were weaker than expected But we think most of the rejections involved in this quarter are already priced, ”Credit Suisse analysts said in a note.

($ 1 = 3.6632 zlotys)

Our Standard: The Thomson Reuters Trust Principle.

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