CCP Games Revenue Up 6.7%, Returns To Profitability In 2023

Today the financial statement CCP ehf. (aka CCP Games) filed with the Icelandic taxing authority for covering 2023 became available on the Skatturinn website. Last year the game company's revenue increased 6.7% to $73.2 million, compared to 2022's $68.6 million. The $5.6 million profit recorded was the first since 2020. The company attributed the revenue gain to "new service revenue related to outsourced development work, along with general cost savings." Indeed, the filing showed a decline of $180 thousand in game revenue compared to 2022's $55,914,671. 

One point to mention is apparently CCP did not reduce overall headcount in order to come up with savings. The company began 2023 with 177 employees and ended the year with 173.

Pearl Abyss Iceland, the holding company controlling CCP ehf, recorded a loss in 2023 of $18.8 million. In 2022 the figure was $70.1 million.

A year ago for the 20th anniversary of EVE Online I created a post looking back at what previous financial filings said about each year of CCP's existence since the launch of EVE. I figured I'd continue the practice by posting the company's submitted review of 2023.

CCP ehf. designs, develops, markets, and operates immersive virtual worlds and games accessible over the Internet. Its mission is to create virtual worlds that are more meaningful than real life. The Company is headquartered in Iceland and owns and operates subsidiaries in the United Kingdom, China, and the United States.

Operations during the year

The Company's revenues in 2023 were USD 73.2 million compared to USD 68.6 million in the previous year. The net profit for the year amounted to USD 5.6 million compared to a net loss of USD 205 thousand in the previous year. New service revenue related to outsourced development work, along with general cost savings, are the main reasons for the change in net results between years. Assets at year-end were USD 71.0 million, shareholders' equity USD 29.8 million and equity ratio 41.9%. The Company employed 173 people at year-end compared to 177 at the beginning of the year. 

In June 2023, CCP released Viridian, a major expansion for EVE Online that introduced sophisticated new tools for players to manage their corporations and set goals. These tools created new avenues for players to forge relationships and engage in socially driven gameplay. The expansion also included new cutting-edge visual updates.

Also in June, CCP deployed the free Microsoft Excel add-in for EVE Online, developed in collaboration with the Excel team at Microsoft. The first integration of its kind for a video game, the add-in revolutionizes EVE Online gameplay by enabling EVE players to gain deep insights into their in-game activities, track their progress, and strategize their next steps using Excel’s robust analysis and visualization tools.

In July, CCP announced the renewal of its publishing license with NetEase Games, a leading international developer and publisher. This agreement reaffirms NetEase Games' role as the exclusive publishing partner for EVE Online in China, ensuring a seamless gaming experience for Chinese players.

During EVE Fanfest 2023, held in September 2023, CCP announced its next expansion for EVE Online, named Havoc. The expansion was released in November 2023 and introduced new gameplay mechanics, ships, and customization options. CCP also revealed the Carbon Engine, a robust technical and graphical improvement for EVE Online.

At EVE Fanfest CCP presented a first look at EVE Vanguard, an upcoming multiplayer FPS module for EVE Online. EVE Vanguard is designed to be connected to EVE Online from day one, allowing players to impact EVE Online through their gameplay in EVE Vanguard. Over time, new gameplay, content and interoperability with EVE Online will be added, deepening the immersion for players and the living universe of New Eden.  In December, EVE Vanguard was made accessible to all EVE players with an active Omega account with the start of a series of four-day-long public playtests, dubbed ‘First Strike’, which recur on a monthly cadence.

CCP also revealed EVE Galaxy Conquest, a 4X strategy mobile game, during EVE Fanfest. Developed by CCP's Shanghai studio, EVE Galaxy Conquest immerses mobile players in New Eden’s thrilling cosmos, combining exploration, diplomacy, and epic player-vs-player battles. Maintaining EVE’s trademark characteristics, players will have the option to combine their strengths and form Corporations to tackle greater challenges. EVE Galaxy Conquest soft-launched in select regions on iOS and Android devices in Q4 2023, with a global release planned for 2024.

In March 2024, CCP revealed the first details about Project Awakening. With a 26-year studio history, Project Awakening represents the next step in CCP’s journey to create virtual worlds more meaningful than real life. Designed with player empowerment at its heart, Project Awakening is being developed as a single-shard survival experience that unlocks boundless creativity for third-party development via blockchain technology and cryptography.

The Board of Directors does not propose dividend payments to shareholders in 2024. Concerning the allocation of profits and changes in the equity of the Company, the Board refers to the Notes attached to the Financial Statements.

At the beginning of the year and year-end 2023, Pearl Abyss Iceland ehf. is the only shareholder in the Company.