Wrocław, November 24, 2020
Revenue of EUR 40 million, record-high net profit of EUR 14.5 million and very promising initial results from global tests of a new game. Ten Square Games releases its report for Q3 2020.
In the third quarter of 2020, the revenue of Ten Square Games (TSG) grew by 6% quarter-on-quarter and by 165% year-on-year. The largest part was generated in the North American and European markets (42% and 38%, respectively), while the Asian market accounted for 14% of total revenue. Like in previous quarters, the main sales driver was the development of ‘Fishing Clash’, TSG flagship title, with the game’s Q3 2020 revenue reaching EUR 36 million (up by 3% q/q and 182% y/y).
After the marketing budget in the second quarter of 2020 rose to the highest level due to very favorable conditions in the international user acquisition market, in the third quarter Ten Square Games’ cost of sales dropped by 24% quarter-on-quarter to reach EUR 20.7 million. Normalized EBITDA amounted to EUR 16.4 million (up by 102% q/q and 111% y/y), while the net profit totaled EUR 14.5 million (up by 105% q/q and 86% y/y).
“We are very pleased with our strong performance in the third quarter of this year, which is the effect of our well-timed decision to increase marketing investment this spring and the continuous improvement of our games. Also, we consistently invest in new product development. After running global tests of three new games over the last months, we have decided to focus on further improvement and scaling of ‘Hunting Clash’. Our new outdoor hobby title has generated results that look very promising on the present stage of its life cycle, in several parameters close to those ‘Fishing Clash’ had at the moment of launch. In our product pipeline, we currently have five live projects, one in advanced production and several more in various early stages of development. As we are working hard towards long-term diversification, a new studio in Berlin and some potential M&A deals should soon be on their way.” said Maciej Zużałek, the CEO of Ten Square Games.
Ten Square Games is one of the largest and fastest-growing Polish mobile game developers, with headquarters in Wrocław and an additional studio in Warsaw. The company focuses on the production of hobby games distributed in a free-to-play model. Since 2018, the company’s shares have been traded on the Warsaw Stock Exchange (WSE: TEN).
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More information: https://tensquaregames.com/investors/
Maria Węsierska Jan Jujeczka
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