GDANSK Polish games developer CD Projekt reported a 1% year-on-year rise in first-quarter net profit on Monday, as it gears up to release an expansion to its popular "Cyberpunk 2077" game.

The company behind "The Witcher" series said its net profit rose to 69.7 million zlotys ($16.8 million), despite a 19% year-on-year drop in revenues to 174.8 million zlotys.

As in previous periods, the largest contribution to sales came from action role-playing game "Cyberpunk 2077", it said.

"That said, 'The Witcher 3' also enjoyed another strong quarter in the wake of its next-gen console release, which took place in December 2022," chief financial officer Piotr Nielubowicz said in a statement.

CD Projekt said it had sold more than 50 million copies of "The Witcher 3: Wild Hunt" so far, with the entire Witcher trilogy's sales now exceeding 75 million copies.

"We are very pleased by the strength of this franchise, particularly in the context of our future projects set in the Witcher universe", CEO Adam Kicinski said in the statement.

After two years without a major new release, CD Projekt is due to present "Cyberpunk 2077: Phantom Liberty" in Los Angeles on June 8 during the Summer Game Fest: Play Days.

"We are also planning a range of other events around the world, and will have more information to share in the coming weeks", Kicinski said.

"Phantom Liberty" is the last game produced on company's own RED engine, with CD Projekt switching to the external Unreal Engine 5 for upcoming projects, which include among others a new Witcher trilogy, a remake of Witcher 1 and a Cyberpunk sequel.

CD Projekt has sold over 20 million copies of Cyberpunk 2077 so far.

($1 = 4.1422 zlotys)

(Reporting by Adrianna Ebert; Editing by Susan Fenton and Mark Potter)