MacArthur: The important thing is that 5 M$ was what GOG generated for all of the year 2013 and I'm still wondering what brought that much revenue in this first semester. There was the first of take 2, but with titles already bundled pretty much everywhere... There also was risen 3 and dying light...

Epitaph666: Great news!
And hopefully as Galaxy gets build up and eventually finished, we'll have more people and more love to our DRM-platform.

RWarehall: Actually, GoG brought in 63,806,000 PLN (~$16,5 million) for all of 2013 with a profit of 9,515,000 PLN ($2.5 million). Sales a bit more than half of 2015 but profits almost equal.

SCPM: There's some more info here:
https://www.cdprojekt.com/en/media/news/cd-projekt-reports-solid-results-q1-2016/
and the pdfs here:
https://www.cdprojekt.com/en/investors/result-center/

Nothing new regarding GOG, that wasn't already mentioned in the conference:
"Given that the growth dynamics of the GOG.com digital distribution platform are primarily influenced by the activity of
the portal’s existing and new clients and the availability of new, appealing products, the Group expects that in Q2 and subsequent quarters of 2016 the performance of GOG.com will depend on its ability to acquire licensing rights for new releases by the world’s leading developers, as well as on expanding the catalogue with “games in development” titles.
The Capital Group’s updated strategy for 2016 expects GOG.com to be able to publish a triple-A video game developed by an unaffiliated partner with full support for GOG Galaxy, concurrently with the game’s global release date. Successful attainment of this goal will affect GOG.com growth dynamics and, consequently, the Company’s ability to acquire distribution rights for other major releases.
In future reporting periods GOG.com’s ability to attract new customers will require exploring markets where GOG.com does not currently hold a major share. In line with this strategy, in May 2016 the service added support for six new currencies, bringing the total number of currencies supported by GOG.com to eleven. Later this year the Company also plans to unveil additional language localizations of its platform.
Finally, GOG.com will depend on ongoing upgrades and extensions of its GOG Galaxy technology stack with new features and networking technologies, facilitating support for new videogame types currently under development at CD PROJEKT RED."

RWarehall: Of course, if you really dig into it. The net profit after taxes was just $67,500 for the quarter.

Nirth: A loss in profits and increase in revenue is not exactly a good sign, their overhead can become overly large and they will have to find new revenue to streams to keep the bottom line. This constant focus on unlimited growth rather than a safe net profit is annoying to say the least. At least they will that unknown AAA game and Cyberpunk 2077.Nirth: Is that right? That number seems very low.

PookaMustard: Any kind of info about the taxes themselves?

RWarehall: Well let's see what they have in the breakdown...
We have the "sales revenues" of 20,114,000 PLN of which 11,000 PLN are actual products and 20,103,000 PLN is "goods and materials". Not sure what those "products" are, but it's a small portion of GoG's sales.

Then we have the "Cost of products, goods and materials sold". "Cost of products and services sold" comes to 179,000 PLN, so whatever these physical products are, they lose money on them. Maybe T-Shirts or something? Still a small amount. But for all we know its a "loss" for promotional value. "Value of goods and materials sold" comes to 13,308,000 PLN. This is slightly less than 70% so appears to represent the money going back to the developers.

That leaves 6,627,000 PLN "Gross profit from sales". There are 276,000 PLN in "Other operating revenues" but 5,056,000 PLN in "Selling costs"; 1,412,000 PLN in "General and administrative costs"; and 39,000 PLN in "Other operating expenses"

This leaves just a 396,000 PLN Operating profit. They gained 14,000 PLN in "Financial revenues" probably interest income and spent 5,000 PLN in "Financial expenses"

This leaves 405,000 PLN of which they had to pay 143,000 PLN "Income tax" leaving 262,000 PLN or about $67,500 of leftover profit. That makes the "income Tax" roughly 35.3%. Incidentally, the income tax for CD Projekt Red was only about 20.5% but they were likely able to reduce that for losses due to the game development.

PookaMustard: What is the difference between 'cost of goods sold' and 'value of goods sold'?

itchy01ca01: If they stopped jacking up prices to incredibly stupid heights, they might make a REALLY good profit.
Am I the only one that understands that the consumer KNOWS when he/she are getting ripped off?
Some of the prices for these games that are decades old... come on guys. Get a grip.

Titanium: Most games get regular and heavy discounts, and the service provided is meant to be long term. How much a person values something is very subjective, but the costs of running the company in western europe are not.

Navagon: CD Projekt bounces its money all over the place. I don't blame them, but I don't know how much you can read into any actual figures other than to say it seems like they're doing well enough.

RWarehall: It's not that hard for the GoG part of the business. Pretty basic as they are mostly a retailer. I'd certainly agree in regards to CD Projekt Red, as trying to interpret anything for a 3-month financial statement when talking about game development given how long it takes a game to come to fruition, not to mention all the development costs before one realizes any income...

Of course if you look at the financials for the past few years, it bears out. CD Projekt Red is all over the place while GoG has been fairly consistant.