Half Year 2026 CD Projekt SA Earnings Call

September 2, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by. I would like to welcome you to CD Projekt's first half 2026 earnings conference call on September 2nd.

Operator: Ladies and gentlemen, thank you for standing by. I would like to welcome you to CD Projekt H1 2026 earnings conference call on 2 September. At this time, all participant lines are on listen-only mode. The format of the call today will be a presentation by the management team, followed by a question and answer session. Without further ado, I would like now to pass the line to Mr. Michał Nowakowski, the Joint Chief Executive Officer. Please go ahead, sir.

Speaker #1: At this time, all participant lines are on listen-only mode. The format of the call today will be a presentation by the management team, followed by a question-and-answer session.

Speaker #1: So, without further ado, I would now like to pass the line to Mr. Michał Nowakowski, the Joint Chief Executive Officer. Please go ahead, sir.

Speaker #2: Good evening. Thank you for joining us today. My name is Michał Nowakowski. I'm the Joint CEO of CD PROJEKT RED, and I'll be hosting today's earnings call concerning the first half of 2026.

Michał Nowakowski: Good evening. Thank you for joining us today. My name is Michał Nowakowski. I am the Joint CEO of CD Projekt Red. I will be hosting today's earnings call concerning the H1 2026. Presenting alongside me is our CFO, Piotr Nielubowicz. After the presentation, we will open the floor for Q&A, where we will be joined by Karolina Gnaś, our VP of Investor Relations. If I were to sum up this half year in one sentence, I would say this: both our franchises are stronger than ever, and we are ushering in the next chapter in their growth. Let me show you what I mean, starting with Cyberpunk. Nearly six years after the launch of Cyberpunk 2077, it has sold over 40 million copies and continues to sell well. This reflects deliberate life cycle management, platform expansion, broadening player reach, and continuous support for the game itself.

Michał Nowakowski: Good evening. Thank you for joining us today. My name is Michał Nowakowski. I am the Joint CEO of CD Projekt Red. I will be hosting today's earnings call concerning the H1 2026. Presenting alongside me is our CFO, Piotr Nielubowicz. After the presentation, we will open the floor for Q and A, where we will be joined by Karolina Gnaś, our VP of Investor Relations. If I were to sum up this half year in one sentence, I would say this: both our franchises are stronger than ever, and we are ushering in the next chapter in their growth. Let me show you what I mean, starting with Cyberpunk. Nearly six years after the launch of Cyberpunk 2077, it has sold over 40 million copies and continues to sell well. This reflects deliberate life cycle management, platform expansion, broadening player reach, and continuous support for the game itself.

Speaker #2: Presenting alongside me is our CFO, Piotr Nielubowicz, and after the presentation, we'll open the floor for Q&A, where we'll be joined by Karolina Gnasz, our VP of Investor Relations.

Speaker #2: If I were to sum up this half-year in one sentence, I would say this: Both our franchises are stronger than ever, and we are ushering in the next chapter in their growth.

Speaker #2: So let me show you what I mean, starting with Cyberpunk. Nearly six years after the launch of Cyberpunk 2077, it has sold over 14 million copies.

Speaker #2: And it continues to sell well. This reflects deliberate lifecycle management: platform expansion, broadening player reach, and continuous support for the game itself. The results speak for themselves—in the first week of July, the peak concurrent player figure on Steam exceeded 100,000, the highest value observed since October 2023.

Michał Nowakowski: The results speak for themselves. In the first week of July, the peak concurrent player figure on Steam exceeded 100,000, the highest value observed since October 2023. Meanwhile, Cyberpunk 2077: Phantom Liberty has reached its own milestone in July, crossing the 15 million copies sold threshold. Today, Cyberpunk is an evergreen franchise, and as you will see in a moment, its value compounds well beyond the game itself. We keep expanding the Cyberpunk ecosystem through selective license-based partnerships that fit our world. In the H1 of the year, Night City was featured, among others, in Wuthering Waves and Apex Legends. For its part, the Cyberpunk Trading Card Game raised $28 million, becoming the most-funded tabletop game project in Kickstarter's history. These partnerships generate visible revenue while maintaining global brand engagement between our core game releases. The new season of the Cyberpunk: Edgerunners anime series is launching on Netflix on 20 October.

Speaker #2: Meanwhile, Phantom Liberty has reached its own milestone in July, crossing the 15-million-copies-sold threshold. Today, Cyberpunk is an evergreen franchise, and as you'll see in a moment, its value compounds well beyond the game itself.

Speaker #2: We keep expanding the Cyberpunk ecosystem through selective, license-based partnerships that fit our world. In the first half of the year, Night City was featured, among others, in Withering Waves and Apex Legends.

Michał Nowakowski: We keep expanding the Cyberpunk ecosystem through selective license-based partnerships that fit our world. In the H1 of the year, Night City was featured, among others, in Wuthering Waves and Apex Legends. For its part, the Cyberpunk Trading Card Game raised $28 million, becoming the most-funded tabletop game project in Kickstarter's history. These partnerships generate visible revenue while maintaining global brand engagement between our core game releases. The new season of the Cyberpunk: Edgerunners anime series is launching on Netflix on 20 October.

Speaker #2: For its part, the Cyberpunk trading card game raised $28 million, becoming the most funded tabletop game project in Kickstarter's history. These partnerships generate visible revenue while maintaining global brand engagement between our core game releases.

Speaker #2: The new season of the Cyberpunk: Edgerunners anime series is launching on Netflix on October 20. In 2022, the release of the first season drove a resurgence of interest in Cyberpunk 2077 among players, which led directly to a visible spike in game sales.

Michał Nowakowski: In 2022, the release of the first season drove a resurgence of interest in Cyberpunk 2077 among players, which led directly to a visible spike in game sales. With Cyberpunk: Edgerunners 2, we want to re-engage audiences with the IP and encourage players to come back to Night City. Let me turn your attention to The Witcher franchise. The Witcher 3: Wild Hunt has now sold over 65 million copies, making it one of the best-selling games of all time. Across the whole franchise, we have now sold over 90 million Witcher games. These numbers provide us with a solid foundation for upcoming releases in the universe. The first one comes on 29 September 2026, when we are launching The Witcher 3: Wild Hunt – Remastered. This new edition brings a slew of upgrades and enhancements to visuals, performance, and gameplay.

Speaker #2: With Edgerunners 2, we want to re-engage audiences with VIP and encourage players to come back to Night City. Now, let me turn your attention to the Witcher franchise.

Speaker #2: The Witcher 3: Wild Hunt has now sold over 65 million copies, making it one of the best-selling games of all time. Across the whole franchise, we have now sold over 90 million Witcher games. These numbers provide us with a solid foundation for upcoming releases in the universe.

Speaker #2: And the first one comes on September 29, 2026. In 2026, we are launching The Witcher 3: Wild Hunt Remastered. This new edition brings a slew of upgrades and enhancements to visuals, performance, and gameplay.

Speaker #2: Remastered also includes a dedicated edition of the game for Nintendo Switch 2. Existing owners will receive Remastered, along with both expansions—Hearts of Stone and Blood and Wine—at no additional cost.

Michał Nowakowski: Remastered also includes a dedicated edition of the game for Nintendo Switch 2. Existing owners will receive Remastered along with both expansions, Hearts of Stone and Blood and Wine, at no additional cost. With this move, we are reactivating players' interest in The Witcher franchise and attracting new ones to The Witcher 3: Wild Hunt. Remastered builds momentum ahead of the release of Songs of the Past and The Witcher 4. In 2027, we are launching Songs of the Past, the third full expansion for The Witcher 3: Wild Hunt, with a scope comparable to Blood and Wine. It acts as a natural bridge, keeping player engagement high and directly leading into the launch of the next saga. We are also gearing up for The Witcher 4 with a target release window in 2028.

Speaker #2: With this move, we're reactivating players' interest in the Witcher franchise and attracting new ones to The Witcher 3: Wild Hunt. The remastered build is building momentum ahead of the release of Songs of the Past and The Witcher 4.

Speaker #2: In 2027, we're launching Songs of the Past, the third full expansion for The Witcher 3: Wild Hunt, with a scope comparable to Blood and Wine.

Speaker #2: It acts as a natural bridge, keeping player engagement high and directly leading into the launch of the next saga. And we're also gearing up for The Witcher 4, with a target release window in 2028.

Speaker #2: The game marks the beginning of a new saga, and is the biggest, oldest, and most ambitious project in our history so far. To sum up, three subsequent years: three major releases, each bigger than the one before, and one unified universe.

Michał Nowakowski: The game marks the beginning of a new saga and is the biggest, boldest, and most ambitious project in our history so far. To sum up, three subsequent years, three major releases, each bigger than the one before, in the one unified universe. I want to be clear, this is not the full list of what we are working on in this universe. In this context, it is encouraging that our recent experience of Gamescom only reaffirmed our conviction players do want more Witcher content. Our hands-off demo gameplay showcase of Songs of the Past attracted nearly 9,000 players alongside 1,500 media representatives and industry professionals. During the event, we conducted over 50 interviews with global media outlets, securing broad coverage for the coming weeks. The reception of our materials presented during Gamescom confirms that player enthusiasm for The Witcher remains strong.

Speaker #2: And I want to be clear: this is not the full list of what we are working on in this universe. In this context, it is encouraging that a recent experience at Gamescom only reaffirmed our conviction: players do want more Witcher content.

Speaker #2: Our hands-off demo gameplay showcase of Songs of the Past attracted nearly 9,000 players, alongside 1,500 media representatives and industry professionals. During the event, we conducted over 50 interviews with global media outlets, securing broad coverage for the coming weeks.

Speaker #2: The reception of our materials presented during Gamescom confirms that player enthusiasm for The Witcher remains strong. Taken together, the Songs of the Past teaser trailer, its Gamescom demo supercut, and the announcement trailer for The Witcher 3: Wild Hunt Remastered generated 26 million views across our own channels.

Michał Nowakowski: Taken together, the Songs of the Past teaser trailer, its Gamescom demo supercut, and the announcement trailer of The Witcher 3: Wild Hunt Remastered generated 26 million views across our own channels. Of course, not counting Opening Night Live stream views. Additionally, our games became the two most hotly discussed releases announced during the Opening Night Live, according to data from tracked social media platforms within the first 12 hours of the event. CD Projekt Red also took home three official Gamescom Awards: Best Trailer for the Songs of the Past reveal and Best Merch, both voted by Gamescom community, and the Jury Award for the Best Booth. This momentum translated into measurable results. 900,000 players added Songs of the Past to their wishlist within a week. Getting back to our growth plans for both franchises, we continue to expand our teams to deliver this ambitious pipeline.

Speaker #2: Of course, not counting opening night livestream views. Additionally, our games became the two most hotly discussed releases announced during Opening Night Live. According to data from tracked social media platforms, within the first 12 hours of the event.

Speaker #2: CD Projekt Red also took home three official Gamescom awards: Best Trailer for the Songs of the Past reveal, Best Merch—both voted by the Gamescom community—and the jury award for Best Booth.

Speaker #2: This momentum translated into measurable results: 900,000 players added Songs of the Past to their wishlist within a week. Getting back to our growth plans for both franchises, we continue to expand our teams to deliver this ambitious pipeline.

Speaker #2: As of the end of July 2026, our total development team grew to 1,045 people. The Witcher 4 team remains our largest unit, with 519 developers on board.

Michał Nowakowski: As of the end of July 2026, our total development team grew to 1,045 people. The Witcher 4 team remains our largest unit, with 519 developers on board. Over the last three months, we expanded the Cyberpunk 2 team to 184 developers to support the game's current development phase. With the other projects, we aligned their headcount with the project's current needs. Now I will hand over the floor to our CFO, Piotr Nielubowicz, who is going to walk you through the financial results for the period. Piotr, it is your turn.

Speaker #2: Over the last three months, we expanded the Cyberpunk 2 team to 184 developers to support the game's current development phase. With the other projects, we aligned their headcount with the projects' current needs.

Speaker #2: And now, I will hand over the floor to our CFO, Piotr Nielubowicz, who is going to walk you through the financial results for the period.

Speaker #2: Piotr. It's your turn.

Speaker #3: Thank you.

Speaker #2: Give me a hell.

Piotr Nielubowicz: Thank you, Michał. Good evening, everyone. Let's start with our consolidated profit and loss account on slide 16. Our sales revenue for H1 2026 reached over 435 million zloty, an impressive 23% increase compared to H1 2025, when Cyberpunk 2077 premiered on Nintendo Switch 2. The majority of sales came from our own products, particularly the Cyberpunk family. In Q1, we also recognized revenue from the inclusion of the base edition of Cyberpunk 2077 and The Witcher 3: Wild Hunt Complete Edition in Xbox Game Pass premium and ultimate subscriptions. What really made a difference in the first 6 months of 2026 compared to a year ago, were revenues from IP licensing, a new line in our presentation and report.

Speaker #3: And good evening, everyone.

Speaker #2: Let's start with our consolidated profit and loss account on slide 16. Our sales revenue for the first half of 2026 reached over 435 million zloty, an impressive 23% increase compared to the first half of 2025, when Cyberpunk 2077 premiered on Nintendo Switch 2.

Speaker #2: The majority of sales came from our own products, particularly the Cyberpunk family. In Q1, we also recognized revenue from the inclusion of the base edition of Cyberpunk 2077 and The Witcher 3: Wild Hunt Complete Edition in Xbox Game Pass, Premium, and Ultimate subscriptions.

Speaker #2: But what really made a difference in the first six months of 2026, compared to a year ago, were revenues from IP licensing—a new line in our presentation and report.

Speaker #2: We booked almost $95 million in revenues from some of the already announced products and partnerships I mentioned, like the Cyberpunk Trading Card Game developed by Wyrdco, the collaboration with Wuthering Waves, as well as some other initiatives that are still unannounced.

Piotr Nielubowicz: We booked almost 95 million zloty here, which included licensing revenues from some of the already announced and mentioned by Michał products and partnerships like Cyberpunk Trading Card Game developed by WeirdCo, the collab with Wuthering Waves, as well as some other initiatives that are still unannounced. With cost of sales being a bit lower year-on-year, our gross profit on sales reached nearly 406 million zloty, up 28% compared to H1 2025. Operating costs slightly increased by 6%, reaching over 160 million zloty, driven mainly by administrative expenses, while selling expenses remained pretty stable. Finally, our net profit for H1 2026 reached nearly a quarter of a billion zloty, a solid 37% increase year-on-year. We are also very satisfied with the net profitability we have achieved, which is why I would like to share a slightly longer-term view with you.

Speaker #2: With cost of sales being a bit lower year on year, our gross profit on sales reached nearly 406 million zloty, up 28% compared to the first half of 2025.

Speaker #2: Operating costs slightly increased by 6%, reaching over 160 million zloty, driven mainly by administrative expenses, while selling expenses remained pretty stable. Finally, our net profit for the first half of 2026 reached nearly a quarter of a billion zloty, a solid 37% increase year on year.

Speaker #2: We're also very satisfied with the net profitability we've achieved, which is why I'd like to share a slightly longer-term view with you. On the next slide, you can see a prior graph—semi-annual simplified financial results along with the net profitability for each period over the last 4 years.

Piotr Nielubowicz: On the next slide, you can see CD Projekt Red's semi-annual simplified financial results, along with the net profitability for each period over the last 4 years. This year's net profitability of 57%, combined with an increasing revenue stream, have allowed us to achieve a nearly threefold increase in net profit over 3 years. The next slide, number 18, presents our consolidated balance sheet on the asset side. The main position remains the expenditure on development projects, which grew by 364 million zloty to surpass 1.5 billion zloty. During H1 2026 alone, we invested nearly 385 million zloty in new development work. Many investments for the period are related to the development of The Witcher 4, Cyberpunk 2, and the Songs of the Past expansion. We also recorded an increase in property, plant and equipment, and investment properties altogether by 69 million zloty.

Speaker #2: This year's net profitability of 57%, combined with an increasing revenue stream, has allowed us to achieve a nearly three-fold increase in net profit over three years.

Speaker #2: The next slide, number 18, presents our consolidated balance sheet on the asset side. The main positions remain the expenditure on development projects, which grew by 364 million zloty to surpass 1.5 billion zloty.

Speaker #2: During the first half of 2026 alone, we invested nearly 385 million zloty in new development work. Main investments for the period are related to the development of Witcher 4, Cyberpunk 2, and the Songs of the Past expansion.

Speaker #2: We also recorded an increase in property, plant, and equipment, and investment properties, altogether by 69 million zloty. It was driven mainly by investments in our campus expansion and ongoing construction works on it.

Piotr Nielubowicz: It was driven mainly by investments in our campus expansion and ongoing construction works on it. On the current asset side, trade receivables increased to 160 million zloty due to high sales at the end of the reporting period, while other current assets decreased to 102 million zloty, primarily following the settlement of receivables from the sale of GOG shares and historical prepayments. At the bottom of the table, you can see our total liquid reserves combining cash, bank deposits, and bonds, which stood at nearly 1.29 billion zloty at the end of June, maintaining a resilient financial buffer. As usual, I will discuss this in more detail on the dedicated cash flow slide. Moving to slide 19, equity and liabilities. Driven by the strong net profit for the period, our total equity grew by 8% to surpass 3.5 billion zloty as of the end of June.

Speaker #2: On the current asset side, trade receivables increased to 160 million zloty due to high sales at the end of the reporting period, while other current assets decreased to 102 million zloty, primarily following the settlement of receivables from the sale of GOG shares and historical prepayments.

Speaker #2: At the bottom of the table, you can see our total liquid reserves, combining cash, bank deposits, and bonds, which stood at nearly PLN 1.29 billion at the end of June.

Speaker #2: Maintaining a resilient financial buffer. As usual, I'll discuss this in more detail on the dedicated cash flow slide. Moving to slide 19: equity and liabilities.

Speaker #2: Driven by the strong net profit for the period, our total equity grew by 8% to surpass 3.5 billion zloty as of the end of June.

Speaker #2: Total liabilities remained stable at 227 million zloty. Now, please move to slide 20: our expenditures on research, development, and product maintenance, presented here on a quarterly basis over the last six quarters.

Piotr Nielubowicz: Total liabilities remained stable at PLN 227 million. Now please move to slide 20. Our expenditures on research works, development, and cost of product maintenance presented here on a quarterly basis over the last six quarters. The chart clearly illustrates the steady ramp-up in our production effort. Investments in our projects, mainly publicly announced alongside some unannounced, are constantly growing. The vast majority of what we present here, shown in blue, relates to capitalized development projects. The increase comes both from projects developed internally and those created in cooperation with our partners, like Songs of the Past or Hadar. Finally, let's look at our aggregated cash flow drivers on slide 21. Cash-wise, the PLN 249 million book net profit from continuing operations was supported by PLN 47 million in amortization, depreciation, and non-cash costs of our share-based incentive programs.

Speaker #2: The chart clearly illustrates the steady ramp-up in our production effort. Investments in our projects—mainly publicly announced, alongside some unannounced—are constantly growing. The vast majority of what we present here, shown in blue, relates to capitalized development projects.

Speaker #2: The increase comes from both projects developed internally and those created in cooperation with our partners, like Songs of the Past or Adronas 2.

Speaker #2: And finally, let's look at our aggregated cash flow drivers on slide 21. Cash-wise, the 249 million zloty booked net profit from continuing operations was supported by 47 million zloty in amortization, depreciation, and non-cash costs of our share-based incentive programs.

Speaker #2: At the same time, 59 million zloty was spent on the acquisition of tangible and intangible assets, as discussed on the balance sheet slide. The overall changes in working capital decreased our cash flows by 21 million zloty, driven mainly by an increased level of receivables related to high sales and decreased provisions, mainly related to 2025 annual bonuses being paid out in Q2.

Piotr Nielubowicz: At the same time, PLN 59 million was spent on the acquisition of tangible and intangible assets, as discussed on the balance sheet slides. The overall changes in working capital decreased our cash flows by PLN 21 million, driven mainly by increased level of receivables related to high sales, decreased provisions mainly related to 2025 annual bonuses being paid out in Q2. Summing it all up, we generated an estimated positive cash flow of PLN 229 million from our ongoing business in H1 2026. Additionally, in January, we received a payment for the sale of GOG shares, which, after transaction costs, bolstered our cash position by PLN 87 million. Last but not least, our cash outflows associated to progressing development expenditures. These amounted to PLN 356 million in the first six months of this year.

Speaker #2: Summing it all up, we generated an estimated positive cash flow of 221.29 million zloty from our ongoing business in the first half of 2026.

Speaker #2: Additionally, in January, we received the payment for the sale of GOG shares, which, after transaction costs, bolstered our cash position by 87 million zloty.

Speaker #2: And last but not least, our cash outflows associated with progressing development expenditures. These amounted to 356 million zloty in the first six months of this year.

Speaker #2: All in all, during the reporting period, our financial reserves kept in cash, bank deposits, and bonds decreased by 39 million zloty, standing at nearly 1.3 billion zloty at the end of June.

Piotr Nielubowicz: All in all, during the reporting period, our financial reserves kept in cash, bank deposits and bonds decreased by PLN 39 million, standing up at nearly PLN 1.3 billion at the end of June. To conclude my part of the presentation, let's look at slide 22, which tracks our progress towards the earnings conditions of Incentive Program B. The goal for the first tranche for financial years 2023, 2026 requires generating PLN 2 billion in cumulative net profit from continuing operations over four years. Thanks to the PLN 249 million net profit booked in H1 2026, we have now completed 86% of this target. This leaves 14%, or approximately PLN 273 million to be realized over the remaining two quarters. This is more than we earned during the first two quarters of this year.

Speaker #2: To conclude my part of the presentation, let's look at slide 22, which tracks our progress towards the earnings conditions of incentive program B. The goal for the first tranche for financial years 2023–2026 requires generating 2 billion zloty in cumulative net profit from continuing operations over four years.

Speaker #2: Thanks to the 249 million zloty net profit booked in the first half of 2026, we have now completed 86% of this target. This leaves 14%, or approximately 273 million zloty, to be realized over the remaining two quarters.

Speaker #2: This is more than we earned during the first two quarters of this year. With strong back-catalog performance, the upcoming Witcher 3 Remastered Edition, Plant—also for Nintendo Switch 2—the Adronas 2 premiere, and other partnerships and initiatives, we believe in reaching this ambitious goal.

Piotr Nielubowicz: With strong back catalog performance, the upcoming The Witcher 3: Wild Hunt – Remastered edition planned also for Nintendo Switch 2, the Cyberpunk: Edgerunners 2 premiere, and other partnerships and initiatives, we believe in reaching this ambitious goal. At the same time, I would like to add one key remark regarding the incentive program. Taking into account the company's current release schedule, the group will most likely not meet the performance conditions set for the second stage of Incentive Program B for the years 2024-2027, which was set at PLN 3 billion. Consequently, 70% of the entitlements granted to participants under this tranche will most likely not vest. As a result, we reversed the previously recognized non-cash costs of stage 2 of the program in the portion corresponding to these entitlements in the amount of PLN 11 million.

Speaker #2: At the same time, I would like to add one key remark regarding the incentive program. Taking into account the company's current release schedule, the group will most likely not meet the performance conditions set for the second stage of Incentive Program B for the years 2024–2027, which was set at PLN 3 billion.

Speaker #2: Consequently, 70% of the entitlements granted to participants under this tranche will most likely not vest. As a result, we reversed the previously recognized non-cash costs of Stage 2 of the program in the portion corresponding to these entitlements, in the amount of PLN 11 million.

Piotr Nielubowicz: As a result, we reversed the previously recognized non-cash costs of stage 2 of the program in the portion corresponding to these entitlements in the amount of PLN 11 million. I should note, however, that assuming things go in line with our plans, we remain optimistic about the prospects of achieving the third and fourth earnings targets under the Incentive Program B, respectively 4 billion PLN and 5 billion PLN in subsequent four-year periods. Thank you. We are now ready for the Q and A session.

Speaker #2: I should note, however, that assuming things go in line with our plans, we remain optimistic about the prospects of achieving the third and fourth earnings targets under the incentive program—respectively, 4 and 5 billion zloty in subsequent four-year periods.

Piotr Nielubowicz: I should note, however, that assuming things go in line with our plans, we remain optimistic about the prospects of achieving the third and fourth earnings targets under the Incentive Program B, respectively 4 billion PLN and 5 billion PLN in subsequent four-year periods. Thank you. We are now ready for the Q&A session.

Speaker #2: Thank you. We are now ready for the Q&A session.

Speaker #1: Thank you. Thank you very much for the presentation. We are now opening the Q&A session. If you are connected via phone and would like to ask a voice question, please press star 2 on your phone keypad and wait for your name to be prompted.

Operator: Thank you. Thank you very much for the presentation. We are now opening the Q&A session. If you are connected via the phone and you would like to ask a voice question, please press star two on your phone keypad and wait for your name to be prompted. If you are connected via the web, you can also request to ask a voice question or send your question as a text. I will just wait a moment or two for the questions to come in. Okay, we have our first voice question coming from Nick Dempsey from Barclays. Nick, please go ahead. Your line is now open.

Operator: Thank you. Thank you very much for the presentation. We are now opening the Q and A session. If you are connected via the phone and you would like to ask a voice question, please press star two on your phone keypad and wait for your name to be prompted. If you are connected via the web, you can also request to ask a voice question or send your question as a text. I will just wait a moment or two for the questions to come in. Okay, we have our first voice question coming from Nick Dempsey from Barclays. Nick, please go ahead. Your line is now open.

Speaker #1: If you are connected via the web, you can also request to ask a voice question or send your question as a text. I'll just wait a moment or two for the questions to come in.

Speaker #1: Okay, we have our first voice question coming from Nick Dempsey from Barclays. Nick, please go ahead. Your line is now open.

Speaker #3: Yeah, good evening, guys. I've got two questions, please. So first of all, your expenditure on development projects in Q2 was just over 200 million zloty, as Piotr just flagged.

Nick Dempsey: Yeah, good evening, guys. I have got two questions, please. First of all, your expenditure on development project in Q2, just over 200 million PLN, as Piotr just flagged. That is a decent step up versus Q1. As you ramp up towards delivering Songs of the Past and The Witcher 4, should we expect that quarterly amount to move up again? Is this a kind of quarterly normal peak level ahead of those games being released? Second question, when thinking about the remaster of The Witcher 3, what extent should we hope for a decent uplift in revenue around that in Q4? I understand that many people will receive this for free because they have bought the game already, but I am also thinking that there will still be new players interested in buying at full price, the combination of the remaster and the two previous expansions.

Speaker #3: That's a decent step up versus Q1. Now, as you ramp up towards delivering Songs of the Past and The Witcher 4, should we expect that quarterly amount to move up again, or is this a kind of quarterly normal peak level ahead of those gains being released?

Speaker #3: And second question, when thinking about the remaster of The Witcher 3, to what extent should we hope for a decent uplift in revenue around that in Q4?

Nick Dempsey: Second question, when thinking about the remaster of The Witcher 3, what extent should we hope for a decent uplift in revenue around that in Q4? I understand that many people will receive this for free because they have bought the game already, but I am also thinking that there will still be new players interested in buying at full price, the combination of the remaster and the two previous expansions. How should we think about that in Q4?

Speaker #3: I understand that many people will receive this for free because they've bought the game already, but I also think that there will still be new players interested in buying at full price.

Speaker #3: The combination of the remaster and the two previous expansions. So, how should we think about that in Q4?

Nick Dempsey: How should we think about that in Q4?

Speaker #2: So, the increase of our expenditures on dev projects is rather something that we do quarter by quarter, by growing our dev teams and getting into more advanced phases of all the development projects we work on, like I presented on one of the slides.

Piotr Nielubowicz: The increase of our expenditures on dev projects is rather something that we do quarter by quarter by growing our dev teams and getting into more advanced phases of all of the development projects we work on, like I presented on one of these slides. Getting closer to the launch of Songs of the Past will rather not influence it significantly as we will continue on all of the other fronts and projects we currently work. Where is the end of the increases? I do not know. We are not guiding, but as you may imagine, the dream of the management of the company is to continue growing, getting bigger, having more projects in the pipeline, and one day having even more releases.

Speaker #2: So, getting closer to the launch of Songs of the Past will rather not influence it significantly, as we will continue on all of the other fronts and projects we currently work on.

Speaker #2: Whereas the end of the increases, I don't know. We are not guiding, but as you may imagine, the dream of the management of the company is to continue growing, getting bigger, having more projects in the pipeline, and one day having even more releases.

Speaker #1: As for the second question about the remaster and the extent of the potential uplift in revenue for Q4, you're correct in your assumption that we're counting on both old players coming back, but also on new players buying The Witcher 3 for the first time—both on the existing platforms and also the new platform, which was just added: the Switch 2.

Michał Nowakowski: As for the second question about the remaster and the extent of the potential uplift in revenue for Q4, you are correct in your assumption that we are counting on both old players coming back, but also on the new players buying The Witcher 3 for the first time, both on the existing platforms and also the new platform which was just added, which is the Switch 2. However, we are not guiding exactly on the extent. I cannot help here, but what we have been flagging before, this is one of the elements that is supposed to help us reach the goals of the motivational program this particular year. But we are not guiding specifically on the revenue attached to remasters.

Speaker #1: However, we are not guiding exactly on the extents. I cannot help here, but what we've been flagging before this is one of the elements that is supposed to help us reach the goals of the motivational program this particular year.

Speaker #1: But we're not guiding specifically on the revenue attached to Remastered.

Speaker #3: That's helpful. Thank you.

Nick Dempsey: That is helpful. Thank you.

Speaker #1: Thank you. Okay, thank you. Thank you very much. So, I see the rest of the questions are text questions, so I'll pass the line to the CD Projekt team to read them out and answer them.

Michał Nowakowski: Thank you.

Operator: Okay. Thank you. Thank you very much. I see the rest of the questions are text questions, so I'll pass the line to CD Projekt team to read them out and answer them.

Speaker #3: Okay. I'll maybe read the first question. It's from Krzysztof Tkocz from Erste. And the question reads, "I'd like to clarify what exactly you mean when you say that Witcher 4 is already running on every platform."

Michał Nowakowski: Okay. I'll maybe read the first question. It's from Christoph Gott from Erste, and the question reads, "I'd like to clarify what exactly you mean when you say that The Witcher 4 is already running on every platform. Are we talking about the limited part of the game used mainly for technical testing, or is the current build already somewhat representative in terms of the game's scale and content?" What I meant in the interview, I know which interview you have on your mind, is we're launching the game on all target platforms such as PC, PlayStation, and Xbox. I mean here the current build we have that we are working on. It does not imply it's a full game, full scale, full content.

Michał Nowakowski: Okay. I'll maybe read the first question. It's from Christoph Gott from Erste, and the question reads,

Krzysztof Tkocz: "I'd like to clarify what exactly you mean when you say that The Witcher 4 is already running on every platform. Are we talking about the limited part of the game used mainly for technical testing, or is the current build already somewhat representative in terms of the game's scale and content?"

Speaker #3: Are we talking about a limited part of the game used mainly for technical testing, or is the current build already somewhat representative in terms of the game's scale and content?" So what I meant in the interview, I know which interview I have on your mind, is we're launching the game on all platforms target platforms such as PC, PlayStation, and Xbox, and I mean here the current build we have that we are working on.

Michał Nowakowski: What I meant in the interview, I know which interview you have on your mind, is we're launching the game on all target platforms such as PC, PlayStation, and Xbox. I mean here the current build we have that we are working on. It does not imply it's a full game, full scale, full content. Those things happen at later stages of development, but it just means that the current build that the team operates on is maintained, is launchable on each target platform. This is very important for us in the development process.

Speaker #3: So, it does not imply it's a full game, full scale, full content. Those things happen at later stages of development. But it just means that the build—the current build that the team operates on—is maintained and is launchable on each target platform.

Michał Nowakowski: Those things happen at later stages of development, but it just means that the current build that the team operates on is maintained, is launchable on each target platform. This is very important for us in the development process.

Speaker #3: This is very important for us in the development process.

Speaker #2: The next question comes from Grzegorz Balcerski, Trigon. "How many unannounced game projects do you currently have in the pipeline? Was The Witcher 3 remaster previously included among those unannounced projects, or was it not capitalized?"

Piotr Nielubowicz: The next question comes from Grzegorz Balcerski, Trigon. "How many unannounced game projects do you currently have in the pipeline? Was The Witcher 3 Remaster previously included among those unannounced projects, or was it not classified as a separate development project?" Maybe I'll refer to projects being currently capitalized, so those that are being in the development phase without touching the research earlier phase. In the development phase, we still have two unannounced projects. As far as The Witcher 3 Remaster is concerned, it was created along all the works on the expansion Songs of the Past as a continuation of historic investments into updating and improving The Witcher 3. This particular project was not capitalized.

Piotr Nielubowicz: The next question comes from Grzegorz Balcerski, Trigon.

Grzegorz Balcerski: "How many unannounced game projects do you currently have in the pipeline? Was The Witcher 3 Remaster previously included among those unannounced projects, or was it not classified as a separate development project?"

Speaker #2: Classified as a separate development project. So maybe I'll refer to projects currently being capitalized, meaning those in the development phase, without touching the earlier research phase.

Piotr Nielubowicz: Maybe I'll refer to projects being currently capitalized, so those that are being in the development phase without touching the research earlier phase. In the development phase, we still have two unannounced projects. As far as The Witcher 3 Remaster is concerned, it was created along all the works on the expansion Songs of the Past as a continuation of historic investments into updating and improving The Witcher 3. This particular project was not capitalized. What we, however, did capitalize was the expansion Songs of the Past as well as the new Nintendo Switch 2 version of The Witcher 3, as this is a port or this is an adaptation of the game for a new platform.

Speaker #2: In the development phase, we still have two unannounced projects. And as far as The Witcher 3 Remastered is concerned, it was created alongside all the work on the expansion Songs of the Past as a continuation of historic investments into updating and improving The Witcher 3.

Speaker #2: And this particular project was not capitalized. What we, however, did capitalize was the expansion Songs of the Past, as well as the new Switch 2 version of The Witcher 3.

Piotr Nielubowicz: What we, however, did capitalize was the expansion Songs of the Past as well as the new Nintendo Switch 2 version of The Witcher 3, as this is a port or this is an adaptation of the game for a new platform.

Speaker #2: As this is a port, or this is an adaptation of the game for a new platform.

Speaker #4: Okay. And the next one is from Piotr Poniatowski, mBank: "Could you give us a bit more color on Project Serious? What's going on there?" So, as you probably know, we recently adjusted the size of the team according to the current needs of the project.

Karolina Gnaś: Okay, and the next one is from Piotr Poniatowski, mBank. "Could you give us a bit more color on Project Sirius? What's going on there?" As you probably know, we recently adjusted the size of the team according to the current needs of the project. The pre-production story is ongoing, and at this stage we are focused on testing different solutions and ideas we develop. It is also worth mentioning that this project is very different from our other projects because it is focused on multiplayer, so there is a lot of learning and testing in this particular one.

Karolina Gnaś: Okay, and the next one is from Piotr Poniatowski, mBank.

Piotr Poniatowski: "Could you give us a bit more color on Project Sirius? What's going on there?"

Karolina Gnaś: As you probably know, we recently adjusted the size of the team according to the current needs of the project. The pre-production story is ongoing, and at this stage we are focused on testing different solutions and ideas we develop. It is also worth mentioning that this project is very different from our other projects because it is focused on multiplayer, so there is a lot of learning and testing in this particular one.

Speaker #4: The production is ongoing. The pre-production phase is ongoing as well. At this stage, we are focused on testing different solutions and ideas we develop. It's also worth mentioning that this project is very different from our other projects because it's focused on multiplayer.

Speaker #4: So, there's a lot of learning and testing in this particular one.

Speaker #1: And the next question is from Grzegorz Balcerski from Trigon. It reads, "What pricing strategy are you considering for the expansion, particularly versus the previous two expansions or Cyberpunk 2077: Phantom Liberty?"

Michał Nowakowski: The next question is from Grzegorz Balcerski from Trigon, and it reads, "What pricing strategy are you considering for the expansion, particularly versus the previous two Witcher expansions or Cyberpunk 2077: Phantom Liberty? Could pricing also serve as a way to monetize the value created by the free remaster?" We are not revealing the pricing strategy just yet. That would be, of course, part of specific marketing announcements when the time for that comes. We are not super far from that, obviously, but here and now is not the moment for that. As for the last part of the question, I am not sure I got it completely, what is meant here, could pricing also serve as a way to monetize the value created by the free remaster?

Michał Nowakowski: The next question is from Grzegorz Balcerski from Trigon, and it reads,

Grzegorz Balcerski: "What pricing strategy are you considering for the expansion, particularly versus the previous two Witcher expansions or Cyberpunk 2077: Phantom Liberty? Could pricing also serve as a way to monetize the value created by the free remaster?"

Speaker #1: Could pricing also serve as a way to monetize the value created by the free remaster? So, we're not revealing the pricing strategy just yet.

Michał Nowakowski: We are not revealing the pricing strategy just yet. That would be, of course, part of specific marketing announcements when the time for that comes. We are not super far from that, obviously, but here and now is not the moment for that. As for the last part of the question, I am not sure I got it completely, what is meant here, could pricing also serve as a way to monetize the value created by the free remaster?

Speaker #1: That would, of course, be part of specific marketing announcements when the time for that comes. We're not super far from that, obviously, but here and now is not the moment for that.

Speaker #1: As for the last part of the question, I'm not sure I fully understood it. What is meant here—could pricing also serve as a way to monetize the value created by the free remaster?

Speaker #1: But obviously, we do hope that a combination of the remaster and the Songs of the Past is going to rejuvenate the chatter, the interest in the Witcher universe as such.

Michał Nowakowski: But obviously, we do hope that a combination of the remaster and the Songs of the Past is going to rejuvenate the chatter, the interest in The Witcher universe as such, and thus that implies also the increased interest in the expansion and its sales as well. We hope a lot of people are going to come into the game, whether they were existing players or the new players who just purchased The Witcher 3 for the first time. We do hope that a lot of them will also decide to buy the expansion.

Speaker #1: And thus, that implies also the increased interest in the expansion and its sales as well, right? I mean, we hope a lot of people are going to come into the game, whether they were existing players or new players who just purchased The Witcher 3 for the first time.

Speaker #1: We do hope that a lot of them will also decide to buy the expansion.

Speaker #2: The next question comes from Piotr Poniatowski, mBank. "On slide 16, you have listed revenues from IP licensing. Could you elaborate more on that line?"

Piotr Nielubowicz: The next question comes from Piotr Poniatowski, mBank. On slide 16, you have listed revenues from IP licensing. Could you elaborate more on that line? Does it include anything from the Netflix cooperation? This line includes revenues we generated over the first 6 months of this year on licensing our rights, either to The Witcher IP or to Cyberpunk IP to external partners. Yes, it includes some revenue from Netflix. However, it's probably not the revenue you potentially asked for. We have a cooperation with Netflix on licensing merchandising rights, and these being sold by Netflix includes royalty for us. This is not the biggest news of the season, I would say, therefore, it's not any of the major incomes we recorded within this line.

Piotr Nielubowicz: The next question comes from Piotr Poniatowski, mBank.

Piotr Poniatowski: On slide 16, you have listed revenues from IP licensing. Could you elaborate more on that line? Does it include anything from the Netflix cooperation?

Speaker #2: "Does it include anything from the Netflix corporation?" So, this line includes revenues we generated over the first six months of this year from licensing our rights—either to The Witcher IP or to Cyberpunk IP—to external partners.

Piotr Nielubowicz: This line includes revenues we generated over the first 6 months of this year on licensing our rights, either to The Witcher IP or to Cyberpunk IP to external partners. Yes, it includes some revenue from Netflix. However, it's probably not the revenue you potentially asked for. We have a cooperation with Netflix on licensing merchandising rights, and these being sold by Netflix includes royalty for us. This is not the biggest news of the season, I would say, therefore, it's not any of the major incomes we recorded within this line. There is altogether over 100 partners with whom we cooperated over the first H1 of this year, and from whom we included the revenues into this 95 million PLN presented in the presentation.

Speaker #2: And yes, it includes some revenue from Netflix. However, it's probably not the revenue you are potentially asking about. We have a cooperation with Netflix on licensing merchandising rights.

Speaker #2: And these being sold by Netflix include royalties for us. And this is not the biggest news of the season, I would say. Therefore, it's not any of the major incomes we recorded within this line.

Speaker #2: The result, together with over 100 partners with whom we cooperated over the first half of this year and from whom we included the revenues into this 95 million zloty, is presented in the presentation.

Piotr Nielubowicz: There is altogether over 100 partners with whom we cooperated over the first H1 of this year, and from whom we included the revenues into this 95 million PLN presented in the presentation.

Speaker #1: And the next one is again from Grzegorz Balcerski from Trigon: "How would you describe the current stage of development of Songs of the Past? Are you still actively producing content, or has the project already moved into the polishing and optimization phase?"

Michał Nowakowski: The next one is again from Grzegorz Balcerski from Trigon. How would you describe the current stage of development of Songs of the Past? Are you still actively producing content, or has the project already moved into the polishing and optimization phase? Well, we're not getting into details of that because if we did, we would have to narrow down the launch date very specifically, and this is something we're keeping for a specific moment in time. So for now, we're just saying 2027, and you will have to live with that for a moment, Grzegorz. Thank you.

Michał Nowakowski: The next one is again from Grzegorz Balcerski from Trigon.

Grzegorz Balcerski: How would you describe the current stage of development of Songs of the Past? Are you still actively producing content, or has the project already moved into the polishing and optimization phase?

Speaker #1: Well, we're not getting into the details of that because if we did, we would have to narrow down the launch date very specifically. And this is something we're keeping for a specific moment in time.

Michał Nowakowski: Well, we're not getting into details of that because if we did, we would have to narrow down the launch date very specifically, and this is something we're keeping for a specific moment in time. So for now, we're just saying 2027, and you will have to live with that for a moment, Grzegorz. Thank you.

Speaker #1: So for now, we're just saying 2027, and you'll have to live with that for a moment, Grzegorz. Thank you.

Speaker #3: Okay. Thank you. Thank you very much. We have a voice question from Ali Naqvi from HSBC. Ali, please go ahead. Your line is now open.

Operator: Okay. Thank you. Thank you very much. We have a voice question from Ali Naqvi from HSBC. Ali, please go ahead. Your line is now open.

Speaker #5: Hi, good evening. Thank you for taking the question. Can I just ask what your view is on Phantom Liberty in terms of the attachment rate?

Ali Naqvi: Hi, good evening. Thank you for taking the question. Can I just ask what your view is on Phantom Liberty in terms of the attachment rate and how well that has performed, and how did that inform your view going forward in terms of base case of future games and future expansions, and what you think the expectation should be there now given the success of that? Secondly, just looking at the developer numbers, quarter-on-quarter or maybe even year-on-year, is there any efficiency gains that you can say have been made as a result of using new technology, AI, whatever you want to call it? Or do you think that it is a false economy and it actually does not really bring any major cost benefits, but it makes things bigger or more efficient? Thank you.

Speaker #5: And how well has that performed? And how does that sort of inform your view going forward in terms of the base case for future games and future expansions?

Speaker #5: And what do you think the expectation should be there now, given the success of that? And then secondly, just looking at the developer numbers quarter-on-quarter, or maybe year-on-year, is there any sort of efficiency gains that you can say have been made as a result of using new technology—AI, whatever you want to call it?

Speaker #5: Or do you think that it's sort of a false economy, and it actually doesn't really bring any major cost benefits, but just makes things bigger or more efficient?

Speaker #5: Thank you.

Speaker #1: I can start with the first one, maybe. So the Phantom Liberty attach rate—how well it's performed—we had a very strong attach rate for Phantom Liberty.

Michał Nowakowski: I can start with the first one, maybe. The Phantom Liberty attach rates, how well it has performed. We had a very strong attach rate for Phantom Liberty, and we were super happy with its performance. In fact, we had pretty strong attach rate for all our expansions, meaning that quite a few fans who decided to play the main games, The Witcher 3 and Cyberpunk 2077, decided to reach for the expanded content. Of course it does influence thinking about the expansions, because if we thought nobody is going to try them, then there would be little point in making them. Again, we are not guiding on specific expectations, but for sure, you can have a look at the past performance of Phantom Liberty and the previous expansions and have some conclusions from that place.

Speaker #1: And we were super happy with its performance. In fact, we had a pretty strong attach rate for all our expansions, meaning that quite a few fans who decided to play the main games—be it Witcher, which are free, or Cyberpunk 2077—decided to reach for the expanded content.

Speaker #1: So, of course, it does influence thinking about the expansions, because if we thought nobody was going to try them, then there would be little point in making them.

Speaker #1: But again, we are not guiding on specific expectations, but for sure, you can have a look at the past performance of Phantom Liberty and the previous expansions and draw some conclusions from there.

Michał Nowakowski: Again, we are not guiding on specific expectations, but for sure, you can have a look at the past performance of Phantom Liberty and the previous expansions and have some conclusions from that place. The development numbers, I think there was a question about what is our gain from the using new technology like AI. Is it a false economy? I believe there was a statement about that. Well, we are not judging AI as such. AI is definitely becoming a thing in the games development as well.

Speaker #1: Regarding the development numbers, I think there was a question about what is our gain from using new technology like AI. Is it a false economy?

Michał Nowakowski: The development numbers, I think there was a question about what is our gain from the using new technology like AI. Is it a false economy? I believe there was a statement about that. Well, we are not judging AI as such. AI is definitely becoming a thing in the games development as well. We are still predominantly using people, and this is our plan to make games where we are not walking away from that. AI, if anything, is a tool like many others that is helping in places that can maybe become more helpful in the future. But we are not planning to rely on AI making complete games. To be honest, especially with very complex games like ours, I do not even think this is the right or ethic path to follow. So whether this is true for the whole industry, I am not the person to make those statements.

Speaker #1: I believe there was a statement about that. Well, we're not charging AI, as such. I mean, AI is definitely becoming a thing in games development as well.

Speaker #1: We are still predominantly using people, and this is our plan to make games—we’re not walking away from that. AI, if anything, is a tool like many others that’s helping in places that can maybe become more helpful in the future.

Michał Nowakowski: We are still predominantly using people, and this is our plan to make games where we are not walking away from that. AI, if anything, is a tool like many others that is helping in places that can maybe become more helpful in the future. But we are not planning to rely on AI making complete games. To be honest, especially with very complex games like ours, I do not even think this is the right or ethic path to follow. So whether this is true for the whole industry, I am not the person to make those statements. I think everybody has to make those judgments on their own.

Speaker #1: But we're not planning to rely, I don't know, on AI making complete games, to be honest—especially for very complex games like ours. I don't even think this is the right or ethical path to follow.

Speaker #1: So whether this is true for the whole industry, I'm not the person to make those statements. I think everybody has to make those judgments on their own.

Michał Nowakowski: I think everybody has to make those judgments on their own.

Speaker #5: Great. Thank you.

Ali Naqvi: Great. Thank you.

Speaker #3: Okay, thank you. I'll pass the line back to the CD Projekt team for the text questions.

Michał Nowakowski: Okay, thank you. I will pass the line back to the CD Projekt team for the next questions.

Speaker #2: And the next question is from Krzysztof Tkacz at Erste. "Could you give us some indication on when work on The Witcher 3 Remaster started, and what level of investment has been involved in the project so far?"

Piotr Nielubowicz: The next question is from Krzysztof Tkocz, Erste. Could you give us some indication on when work on The Witcher 3: Wild Hunt – Remastered started, and what level of investment had been involved in the project so far? Are we talking about several tens of millions of PLN? Most of the work was carried over the last year as a continuation of our ongoing developments of The Witcher 3: Wild Hunt. I would not like to comment on specific figures. However, I would like to note, as I already said, that these development costs were not capitalized.

Piotr Nielubowicz: The next question is from Krzysztof Tkocz, Erste.

Krzysztof Tkocz: Could you give us some indication on when work on The Witcher 3: Wild Hunt – Remastered started, and what level of investment had been involved in the project so far? Are we talking about several tens of millions of PLN?

Speaker #2: Are we talking about several tens of millions of PLN? So, most of the work was carried out over the last year as a continuation of our ongoing development of The Witcher 3.

Piotr Nielubowicz: Most of the work was carried over the last year as a continuation of our ongoing developments of The Witcher 3: Wild Hunt. I would not like to comment on specific figures. However, I would like to note, as I already said, that these development costs were not capitalized.

Speaker #2: I wouldn't like to comment on specific figures. However, I would like to note, as I already said, that these development costs were not capitalized.

Speaker #1: Okay, the next question is from David Mack from Red Research, and it says: "You know 2028 is a target release window for The Witcher 4, but that is your most ambitious project."

Michał Nowakowski: Okay, the next question is from David Mak, from Red Research. It says, you know 2028 is a target release window for The Witcher 4, but that is your most ambitious project ever. Any update on its stage of production and what are the key milestones you are looking for to assess progress? As we have stated quite a few times before, we are in a full production stage of The Witcher 4, which roughly means, in very broad strokes, that we know what kind of game we are making, with elements and so on. Then, it is filling the game with content and so on. We are not going into specific details. There is a lot of milestones we have internally. There is a pickup of specific batches, pickup of specific milestones and so on.

Michał Nowakowski: Okay, the next question is from David Mak, from Red Research. It says,

David Mak: You know 2028 is a target release window for The Witcher 4, but that is your most ambitious project ever. Any update on its stage of production and what are the key milestones you are looking for to assess progress?

Speaker #1: Have you any update on its stage of production, and what are the key milestones you're looking for to assess progress? As we have stated quite a few times before, we're in a full production stage.

Michał Nowakowski: As we have stated quite a few times before, we are in a full production stage of The Witcher 4, which roughly means, in very broad strokes, that we know what kind of game we are making, with elements and so on. Then, it is filling the game with content and so on. We are not going into specific details. There is a lot of milestones we have internally. There is a pickup of specific batches, pickup of specific milestones and so on.

Speaker #1: Of The Witcher 4, which roughly means, in very broad strokes, that we know pretty well what kind of game we're making with elements, and so on.

Speaker #1: And then it's filling the game with content, and so on. We're not going into specific details. There's a lot of milestones we have internally—there's a pickup of specific batches, pickup of specific milestones—and so we're not announcing all of them, because a lot of them are very technical, very internal, and actually wouldn't really mean a lot to the external audience.

Michał Nowakowski: We are not announcing all of them because a lot of them are very technical, very internal, and actually would not really mean a lot to the external audience. This is what is happening right now, the actual making of the game till its release date. Every milestone is a moment for us to look at it and ponder where we are, how well we are progressing with the development. Is anything hindering us? Is there any iteration that is required? So I am not sure if this is a fully satisfactory answer, but that is, without getting into super weird details, as clear answer as I can provide you.

Speaker #1: But this is what is happening right now—the actual making of the game, till its released state. And every milestone is a moment for us to look at it and ponder where we are, how well we are progressing with the development.

Speaker #1: Is anything hindering us? Is there any iteration that is required? And so on and on. So, I'm not sure if this is a fully satisfactory answer, but that's, without getting into super weird details, as clear an answer as I can provide here.

Speaker #4: Okay. And the next one is from Piotr Poniatowski, mBank: "And how about Heydar?" So, Heydar is still in the concept phase. We currently have over 30 people there and expect to hire more—up to 50 developers by the end of this year.

Karolina Gnaś: Okay, the next one is from Piotr Poniatowski, mBank. How about Hadar? Hadar is still in the concept phase. We currently have there over 30 people and expect to hire more, up to 50 developers by the end of this year. Right now, the team is mostly focused on testing different approaches, ideas, and prototyping some gameplay elements. This is it.

Karolina Gnaś: Okay, the next one is from Piotr Poniatowski, mBank.

Piotr Poniatowski: How about Hadar?

Karolina Gnaś: Hadar is still in the concept phase. We currently have there over 30 people and expect to hire more, up to 50 developers by the end of this year. Right now, the team is mostly focused on testing different approaches, ideas, and prototyping some gameplay elements. This is it.

Speaker #4: Right now, the team is mostly focused on testing different approaches and ideas, and prototyping some gameplay elements. And this is it.

Speaker #2: The next question comes from Rafał Wiatr, City. "Please provide the amount of provisioning that was released in Q2 2026." Oh, wow. That's a pretty broad question, as we have a number of different types of provision sets in our books.

Piotr Nielubowicz: The next question comes from Rafał Wieczorek, Citi. Please provide the amount of provisioning that was released in Q2 2026. That is a pretty broad question as we have a number of different types of provision sets in our books. You can find all of the details divided per different categories in note 2022 and 2023 of our consolidated financial statement.

Piotr Nielubowicz: The next question comes from Rafał Wieczorek, Citi.

Rafał Wieczorek: Please provide the amount of provisioning that was released in Q2 2026.

Piotr Nielubowicz: That is a pretty broad question as we have a number of different types of provision sets in our books. You can find all of the details divided per different categories in note 2022 and 2023 of our consolidated financial statement.

Speaker #2: But you can find all of the details, divided into different categories, in Note 2022 and 2023 of our consolidated financial statement.

Speaker #1: The next one is from Grzegorz Balcerski from Trigon: "Do you have a specific attachment rate target in mind for next year's expansion with Phantom Liberty, with a more relevant benchmark, or are the previous two expansions a better reference point internally?" So, of course, we're not guiding on specifics.

Michał Nowakowski: The next one is from Grzegorz Małaczewski from Trigon. Do you have a specific attachment rate target in mind for the next year's expansion? Would Cyberpunk 2077: Phantom Liberty be the more relevant benchmark, or the previous two Witcher expansions a better reference point internally? Of course we are not getting on specifics. We of course have various scenarios of what happens. Honestly speaking, both Cyberpunk 2077: Phantom Liberty and The Witcher expansions had really, really good attach rates. Even based on that, we do believe that we have a really solid shot at having a very strong attach rate for the Songs of the Past. I am not going to throw a specific number here on this call. We are optimistic in general.

Michał Nowakowski: The next one is from Grzegorz Małaczewski from Trigon.

Grzegorz Balcerski: Do you have a specific attachment rate target in mind for the next year's expansion? Would Cyberpunk 2077: Phantom Liberty be the more relevant benchmark, or the previous two Witcher expansions a better reference point internally?

Michał Nowakowski: Of course we are not getting on specifics. We of course have various scenarios of what happens. Honestly speaking, both Cyberpunk 2077: Phantom Liberty and The Witcher expansions had really, really good attach rates. Even based on that, we do believe that we have a really solid shot at having a very strong attach rate for the Songs of the Past. I am not going to throw a specific number here on this call. We are optimistic in general.

Speaker #1: I mean, we of course have various scenarios of what happens, but honestly speaking, both Phantom Liberty and The Witcher expansions had really, really good attach rates.

Speaker #1: So even based on that, we do believe that we have a really solid shot at having a very strong attach rate for The Songs of the Past.

Speaker #1: But I'm not going to throw out a specific number here on this call. But we're optimistic, in general.

Speaker #2: The next question is from Rafał Wiatr, City. "What licensing revenues should we be looking for in the second half of '26?" As you know, we are not guiding future results, so I'm sorry, I cannot give an answer to this question.

Piotr Nielubowicz: The next question from Rafał Wieczorek, Citi. What licensing revenues should we be looking for the H2 2026? As you know, we are not guiding future results, so I am sorry I cannot give an answer to this question. The next one from Piotr Poniatowski, mBank. How much revenues from IP licensing have you booked in the Q1 2026? What I can say is that most of the licensing revenue actually happened in the Q2 2026. The minority of the amount came from the Q1. Although this is part of the business that we continue for years, so there was some licensing revenue last year. There was some licensing revenue Q1 of this year. However, the Q2 was kind of spectacular.

Piotr Nielubowicz: The next question from Rafał Wieczorek, Citi.

Rafał Wieczorek: What licensing revenues should we be looking for the H2 2026?

Piotr Nielubowicz: As you know, we are not guiding future results, so I am sorry I cannot give an answer to this question. The next one from Piotr Poniatowski, mBank.

Speaker #2: And the next one from Piotr Poniatowski, mBank: "How much revenue from IP licensing have you booked in the first quarter of '26?" So what I can say is that most of the licensing revenue actually happened in the second quarter of 2026.

Piotr Poniatowski: How much revenues from IP licensing have you booked in the Q1 2026?

Piotr Nielubowicz: What I can say is that most of the licensing revenue actually happened in the Q2 2026. The minority of the amount came from the Q1. Although this is part of the business that we continue for years, so there was some licensing revenue last year. There was some licensing revenue Q1 of this year. However, the Q2 was kind of spectacular.

Speaker #2: And the minority of the amount came from the first quarter. Although this is part of the business that we continue for years, so there was some licensing revenue last year.

Speaker #2: There was some licensing revenue in the first quarter of this year. However, the second quarter was kind of spectacular.

Speaker #4: The next one from Piotr Poniatowski, mBank: "How much is working on Songs of the Past right now?" So, right now we have 220 people on this project—170 out of Full Theory, 10 from CD Projekt Red, and the rest are outsourced.

Karolina Gnaś: The next one from Piotr Poniatowski, mBank. How much devs are working on Songs of the Past right now? Right now we have 220 people on this project, 170 out of Fool's Theory, 10 from CD Projekt Red, and the rest is outsource.

Karolina Gnaś: The next one from Piotr Poniatowski, mBank.

Piotr Poniatowski: How much devs are working on Songs of the Past right now?

Karolina Gnaś: Right now we have 220 people on this project, 170 out of Fool's Theory, 10 from CD Projekt Red, and the rest is outsource.

Speaker #1: Okay. Since we don't seem to have any more questions, I'd like to thank you for your attention today and tonight. Should any further questions arise, our lovely investor relations department remains at your disposal.

Michał Nowakowski: Okay, since we do not seem to have any more questions, I would like to thank you for your attention today, tonight, and should any further questions arise, our lovely investor relations department remains at your disposal. I wish you all a wonderful evening and goodbye till the next time. Thank you.

Speaker #1: I wish you all a wonderful evening, and goodbye until next time. Thank you.

Speaker #4: Thank you.

Operator: Thank you.

Karolina Gnaś: Thank you.

Speaker #2: Thank you.

Operator: Thank you.

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Half Year 2026 CD Projekt SA Earnings Call

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