In Q3 2022, the Ten Square Games Group improved its key financial parameters compared to Q2 2022. Thanks to the increase in bookings in the largest titles of the Group and the growing revenues of Rortos, the consolidated payments of the Group’s game users increased by 11.4% to PLN 137.5 million, and total revenues amounted to PLN 130.4 million, which means an increase by 7.1% compared to the previous quarter. Adjusted EBITDA increased by 23% compared to Q2 2022, reaching PLN 35 million. Stabilization of the Group’s cost base positively contributed to the results.
– We are closing the third quarter of 2022 with an improvement in financial results and operational parameters in all our games. This is the result of the hard work of the entire TSG team. In the coming quarters, we will continue to operate in a changing and unpredictable market environment, which is why we focus on factors that we have a real impact on, i.e. primarily improving the functionality and attractiveness of our titles. – says Maciej Zużałek, President of the Management Board of Ten Square Games SA.
The reported period was also very successful for the game Hunting Clash, which recorded an increase in payments both in relation to Q2 2022 (by 30%) and Q3 2021 (by 16%). Thanks to the introduced product changes, it was possible to stabilize the base of active monthly users and to record a much higher ABPU (average bookings per user) ratio than in the previous quarters, which proves the increasing involvement of players.
For both flagship titles of the Company, ambitious and interesting development plans for the coming months have been prepared.
– The reconstruction of the Fishing Clash user base and the increase in Hunting Clash’s revenues are due to positive product changes and effective marketing activities. Record daily revenue for Hunting Clash recorded in September this year. shows its further growth potential. The analysis of the preliminary results of Wings of Heroes looks optimistic, as it became the third biggest TSG title in terms of daily revenues in the first weeks after its world premiere. This shows the great potential of this product in the future and the possibility of further diversification of the Group’s revenues. – adds Zużałek.
Since July 2021, the Group’s revenues also include the growing payments of the acquired company Rortos – the leader in the segment of mobile flight simulators. In October this year Rortos successfully carried out the world premiere of Wings of Heroes. Current work in the game focuses on attracting larger number of players, while maintaining very good payment metrics.
In 2022, revenues generated by the two main titles of Rortos – Airline Commander and Real Flight Simulator amounted to PLN 21.7 million. The first of the two titles is actively developed and supported by the Wrocław-based product team, which is currently focusing on the production of elements necessary to build full monetization in the game and improving parameters within the game. The first effects of these actions are already visible. In Q3 2022 the game achieved the best level of payments since Rortos acquisition by TSG, amounting to PLN 3.7 million.
The second title – Real Flight Simulator – is in the maintenance phase. The game is not actively supported by a large product team, nor by marketing expenses.
In the near future, the Group intends to continue the development of its activities in the current areas, and the Company is analyzing the possibilities of further acquisitions and investments.
The results of Ten Square Games in the coming quarters will be mainly influenced by the parameters of Fishing Clash, the development of Hunting Clash, as well as Wings of Heroes and Airline Commander. The indicators of new productions, such as Fishing Masters and Undead Clash, will also play an important role. An additional element, apart from the quality of the product offer, that may affect the Group’s results is the condition of the advertising market and the related costs of acquiring new users.
External factors that may affect the Group’s results include, first of all, the current and growing economic and geopolitical uncertainty, as well as high inflation. In the longer term, they may shape the behavior of players, and thus affect the Group’s ability to obtain in-game payments. The Company is entering this uncertain time generating high operating cash flows and with a safe cash balance.
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