Ten Square Games announces Q2 2023 results and showcases progress in pursuit of new strategy with growing bookings and highest so far 2023 EBITDA levels in July and August.

06 Sep 23
Author: Nina Grabos
5 minutes

Q2 2023 showcases a journey of transformation and strategic recalibration in Ten Square Games (TSG) that is already demonstrating promising results. While Q2 2023 results still show challenges the company has faced, TSG’s focused efforts yield first positive outcomes with highest 2023 profitability results in July and August, positioning the company for future growth. 

Since the introduction of its new strategy in April 2023, TSG has executed a comprehensive overhaul of its operations. The primary focus was on enhancing the key performance indicators (KPIs) of its flagship products and reorienting the company towards efficiency and profitability. This strategic shift led to the termination of development for two projects, accompanied by a prudent restructuring that involved a reduction of 25% in the company’s workforce. This initiative has resulted in the diminishing of monthly remuneration costs by PLN 1.8 million bringing potential cost savings of almost PLN 22 million annually.

“- Our commitment to a lower cost base coupled with growing revenues in our flagship titles marks an exciting opportunity to drive lasting improvements across Ten Square Games. These measures position us for a future that we approach with growing optimism.”- said Andrzej Ilczuk, CEO of TSG.

The cornerstone of the revised strategy is based on revitalizing the growth trajectory of the company’s two largest titles, Fishing Clash and Hunting Clash, and acceleration of development of the latest addition to its portfolio, Wings of Heroes. The management believes that the meticulous investment in these key products embodies the most strategic path towards a profitable future.

„ – This focused investment underscores our conviction that strengthening our core offerings is the most potent route to secure the future of Ten Square Games.” – adds Andrzej Ilczuk, CEO of TSG.

The relentless efforts of TSG’s product teams have already begun to yield positive outcomes. The company’s bookings demonstrated an upward trajectory in both July and August – up by 12.5% m-o-m and 11.0% m-o-m, respectively, reflecting the initial returns of the strategic actions taken in the preceding months. These early results strengthen the company’s resolve to pursue its new course. Rebound in bookings coupled with the focus on the cost efficiency and profitability resulted in highest levels of Adjusted EBITDA in 2023 reaching PLN 9.7 million in July (up by 42.2% m-o-m) and PLN 12.0 million in August (up by 23.6% m-o-m).

In Fishing Clash, the introduction of the innovative “Power score” functionality, alongside enhancements to loading times and player engagement, has shown the team’s dedication to improving user experience and engagement. The recalibration of LiveOps organization strategy, combined with a fresh sales approach, has contributed to enhanced monetization. The implementation of the TSG online store further enriches player interactions and improves profitability, with upcoming plans to integrate offerings from other titles into the store.

Meanwhile, the Hunting Clash team has made strides in enhancing player engagement and conversion. Innovative features like the “Hunt Multiplier” and “Hunt Box” have been received positively, driving growth in user monetization and retention. The team’s efforts have manifested in a notable increase in bookings – up by 25.3% m-o-m in July and up by 10.1% m-o-m in August.

In Wings of Heroes, significant systemic changes have been implemented to pave the way for sustained development and user engagement. The game’s progression system, economy, and event organization have been revamped, contributing to a stabilized revenue stream despite scaled-back marketing activities.

“- While our Q2 2023 results may not reflect our full potential, they embody the hard work, restructuring, and innovation that underpin our transformative journey,” concluded Andrzej Ilczuk, CEO of TSG.

The second quarter of 2023 showcases TSG’s resilience in the face of challenges. Despite reporting an operating profit of PLN 9.6 million and adjusted EBITDA of PLN 21.9 million – lower compared to the previous year – the company remains resolute in its pursuit of lasting growth. TSG is determined to leverage its strengthened organizational structure, cost discipline, and newfound focus on its core products to drive sustainable gains in the quarters ahead.

However, in the pursuit of its strategic agenda, TSG has also addressed key challenges that impacted its financial performance. The Q2 2023 results were influenced by impairment losses and provisions related to the recent workforce reduction, totaling PLN 5.1 million and PLN 31.7 million, respectively, for the Q2 and H1 2023. The company accounted for severance pay for group lay-offs in the amount of PLN 6.5 million (including PLN 3.3 million related to terminated projects). 

Despite these challenges, TSG remains committed to delivering value to its shareholders. In June 2023, the company distributed dividends totaling PLN 52.3 million, exceeding its earlier dividend policy due to the strategic decision not to initiate new project development until the main titles of the Group demonstrate improved performance.

Ten Square Games is a visionary game developer committed to delivering captivating and immersive gaming experiences in a free-to-play model. It consists of about 300 people working in studios in Wrocław, Warsaw and Bucharest. Ten Square Games S.A. acquired the Rortos studio in Verona, as well as a minority stake in the Krakow Gamesture studio. The Group’s portfolio includes, among others: Fishing Clash, one of the world’s most popular 3D fishing simulators, Hunting Clash, a realistic hunting simulator, as well as Airline Commander, one of the most recognizable flight simulators, and Wings of Heroes, which premiered globally in October 2022.

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