Profil:
PCF Group SAPCF gaming posts net loss of PLN 174.4 mln in 2024, compared to PLN 76.7 mln loss year earlier
Listed games developer PCF Group reported a net loss of PLN 174.4 million (EUR 40.9 mln) in 2024, compared to a net loss of PLN 76.7 million (EUR 18 mln) in 2023, the company's annual report showed. Earlier, the company said it would take a total of PLN 173 million (EUR 40.5 mln) in write-offs in the 2024 consolidated statement.
In 2024, the loss from operations amounted to PLN 197.5 million (EUR 46.3 mln), compared to an operating loss of PLN 86.4 million (EUR 20.2 mln) a year earlier.
Sales revenue for the period was PLN 190.4 million (EUR 44.6 mln) compared to PLN 150.1 million (EUR 35.2 mln) in 2023. Adjusted EBITDA amounted to PLN 12.87 million (EUR 3 mln).
Net cash from operating activities at the end of 2024 was PLN 2.2 million (EUR 515,000).
On April 25, the company reported that the PCF Group will recognise impairment losses on non-current assets totalling PLN 173 million (EUR 40.5 mln) in its consolidated financial statements for 2024.
The largest part of this amount relates to the "Bifrost" project, the value of which has been completely written off due to the lack of secured financing for further stages of production.
As stated, PLN 154.96 million (EUR 36.3 mln) relates to the full write-off of the value of the expenditures made on the "Bifrost" project, with PLN 18.06 million (EUR 4.2 mln) due to the full write-down of the value allocated to the subsidiary Incuvo.
The company indicated that the write-offs are non-cash in nature and do not affect the group's EBITDA.
PCF Group also recognised write-offs in the standalone statement. On a standalone basis, PLN 213.5 million (EUR 50 mln) of expenditures on the "Bifrost" project and PLN 18.9 million (EUR 4.4 mln) of partial impairment of the investment in Incuvo were written off, which will reduce the standalone financial result for 2024 and the value of non-current assets on the company's balance sheet.
In turn, the company reported in September that PCF Group would recognise an impairment charge in relation to the abandonment of work on Project "Red", amounting to 100 percent of the value of the game development expenditure incurred.
It was indicated at the time that the write-off would, among other things, reduce the consolidated financial result for the first half of 2024 and reduce the value of non-current assets presented in the group's consolidated balance sheet at the end of June 2024 by PLN 7.7 million (EUR 1.8 mln).
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