**CD Projekt Reports Decline in Half-Year Profit Amid Rising Costs**
Poland’s leading game developer, CD Projekt, has announced an 8.9% decrease in its net profit for the first half of the year compared to the previous year, primarily due to increased selling costs and higher tax obligations. The company’s net profit reached 155.0 million zlotys ($42.6 million), surpassing analysts’ expectations of 152 million zlotys, as indicated in a recent poll. Revenue for the same period saw a 4.3% year-on-year increase, totaling 443.0 million zlotys.
CD Projekt is renowned for its two major franchises, Cyberpunk and The Witcher. Currently, “The Witcher 4,” a follow-up to “The Witcher 3: Wild Hunt,” is in production, with a release anticipated post-2026. Meanwhile, the sequel to Cyberpunk 2077, titled Cyberpunk 2, is in the pre-production stage. The most significant development expenditures in the first half of the year were associated with The Witcher 4, Cyberpunk 2, and the Sirius projects. Additionally, substantial research costs were incurred for the Hadar project.
As CD Projekt navigates a period without a major game release, its revenue in the upcoming quarters will largely depend on the sales of existing titles. Joint CEO Michal Nowakowski noted that the development of a major AAA game typically spans five to six years from the initial concept discussions. CFO Piotr Nielubowicz emphasized that the group’s revenue continues to be significantly influenced by Cyberpunk 2077 and its Phantom Liberty expansion. He also highlighted that investments in ongoing projects have exceeded 240 million zlotys in the first half of the year.
In summary, while CD Projekt faces challenges with rising costs and a lack of new releases, its established franchises continue to drive revenue, and the company remains committed to investing in future projects.
**FAQ**
**What are CD Projekt’s major franchises?**
CD Projekt is known for its blockbuster franchises, Cyberpunk and The Witcher, with ongoing developments for new titles in both series.
