Despite a challenging first quarter of 2024 for the Company’s two main titles, Ten Square Games (TSG) has made significant strides forward. Wings of Heroes has caught the wind, improving all metrics and surpassing short-term targets, and is expected to accelerate its growth even faster in the coming months. The growth dynamics of the TSG Store are accelerating, contributing to the Company’s financial efficiency. TSG’s 2023 discovery projects, resilience, and ability to adapt have helped the Company shape a clear roadmap to unlock the potential of its current portfolio and seize the opportunities presented by the evolving gaming landscape. As the industry shifts, TSG is committed to testing 2 new prototypes for cutting-edge games targeting a new generation of players, setting the stage for sustained growth and innovation.

Financial Results and Achievements in Q1 2024

TSG reported total bookings of PLN 99.7 million for the first quarter of 2024, reflecting an 8.1% decrease compared to the previous quarter. This decline was primarily due to reduced player activity following the high intensity of Q4 2023.

The largest product in the Group’s portfolio, Fishing Clash, focused on retention during Q1 2024, following an intensive final quarter of 2023, by reducing the number of in-game events. This, combined with the fewer weekends in February and April, affected the game’s KPIs. In Q1 2024, Hunting Clash introduced the biggest update since its release, revamping the main competition system. This update paves the way for new monetization systems that will be developed in the future, potentially improving long-term game profitability. Additionally, the introduction of the “power score” functionality and a new game mode, “mini-monopoly,” aims to boost player engagement and retention. Hunting Clash also achieved a record level of users, exceeding 3.5 million average monthly active users (MAU) in Q1 2024, thanks to effective partnerships, such as with Beretta, and a new marketing approach. The game’s systems, previously optimized for smaller traffic volumes, are now being recalibrated to manage the increased user base effectively. This presents a significant opportunity to enhance the game’s profitability through organic user acquisition.

The Group’s third main title, Wings of Heroes, saw its bookings increase to PLN 2.9 million. Following changes introduced in the first half of 2023, the game continues to improve its retention, engagement, and monetization metrics. The addition of new content and functionalities, along with enriched social aspects, supports the game’s ongoing development according to its milestones. The Management Board expects an acceleration of growth in the second half of 2024. It’s also worth noting that Real Flight Simulator, a game from the Rortos portfolio, reported consecutive quarterly growth, contributing positively to the Group’s overall performance.

The TSG Store accelerated its growth dynamics and now accounts for 12% of the Group’s bookings in Q1 2024, up from 9% in Q4 2023. It plays a crucial role in reducing commission costs and boosting profitability for Ten Square Games.

Thanks to restructuring and operational streamlining, TSG’s adjusted EBITDA amounted to PLN 27.5 million. While this was lower than the record high achieved in Q4 2023, it was comparable to the result from Q1 2023. TSG achieved a net profit of PLN 18 million, marking a significant turnaround from the net losses reported in Q4 2023 and Q1 2023.

“- Despite unfavorable macroeconomic conditions, cost discipline and focus on creating added value by all teams in the Company allowed us to end the first quarter of 2024 with positive financial results at every level. Additionally, we executed a buyback of our own shares worth PLN 114.5 million, a record-high value in the Company’s history. This demonstrates our commitment to returning value to our shareholders.  – commented Magdalena Jurewicz, CFO of Ten Square Games.”

Strategic Roadmap and Future Projects

Looking forward, TSG is committed to building on the foundational work completed in 2023 to drive growth and innovation in 2024 and beyond. A key component of this strategy involves the development of two new game prototypes, codenamed Hunting Next and Fishing Next, which will be ready for technical launches in June and July, respectively. These projects, developed by agile teams with a focus on rapid time-to-market delivery, target different demographics and offer distinct gameplay experiences compared to TSG’s current offerings.

“- 2023 was a pivotal year for us as we laid the groundwork for future growth. The extensive testing and player feedback analysis conducted last year have provided valuable insights that will shape our strategy moving forward. The upcoming prototypes, Hunting Next and Fishing Next, represent our commitment to innovation and our ability to adapt to evolving market demands. These projects focus on different types of gameplay and target groups, and we are excited about their potential to redefine the boundaries of the outdoor segment in mobile gaming,” stated Andrzej Ilczuk, CEO of Ten Square Games.

Unleashing the Growth Potential of Current Portfolio

Extensive testing of all aspects of gaming operations has provided Ten Square Games with comprehensive insights into the changing needs and behavior patterns of its players. Leveraging this data, the Company has developed a roadmap to eliminate the major obstacles blocking the full potential of its main projects, focusing on two primary priorities: monetization and quality.

To achieve these goals, TSG is adopting a fundamentally different approach to game development, utilizing technological advancements to change the rules of its games and better meet player expectations. The Company’s two largest projects, Fishing Clash and Hunting Clash, are complex ecosystems where mistakes can lead to significant losses. A crucial role in this process is played by TSG’s R&D team, which is leveraging automation and AI to eradicate errors and free up the intellectual capacity of teams to focus on conceptual and creative tasks that drive company growth and improve service quality. The new strategy for LiveOps, the most important monetization tool for TSG, involves changes in marketing, user acquisition, and better user segmentation and offer shaping. Technological support and tools are essential for implementing this strategy effectively.

“Our dedication to data-driven processes and technological innovation allows us to address the core issues hindering our growth. By focusing on automation and AI, we not only eliminate repetitive errors but also empower our teams to concentrate on creative and strategic initiatives. This comprehensive approach is designed to enhance the quality of our services and drive the growth of our main projects. – commented Janusz Dziemidowicz, CTO of Ten Square Games”

TSG continues to integrate advanced technologies, including automation and AI, to enhance operational efficiency and improve the user experience in its largest games, ensuring that the Company stays ahead of industry trends and delivers top-quality gaming experiences to its players.

Challenges and Market Conditions

The mobile game market is facing transformational challenges. The value of the mobile gaming market decreased by 2% in 2023 despite the growing number of players. And the number of players is expected to double in a short period, leading to significant changes in how the market operates. The rapid growth of technological access is bringing players from diverse geographical and cultural backgrounds into the market. They present a different set of needs and behaviors than the current pool of players. This, coupled with the economic challenges faced globally, demands a complete overhaul in the way mobile game operators act. Only those who are willing to harness the opportunities brought by this transformation stand a chance to grow their business rather than merely fight for a status quo. 

Ten Square Games is well-positioned for growth with a clear strategic roadmap built on a solid foundation of knowledge, innovation and data-driven strategies. The Company’s focus on technological advancements, operational efficiency, and market expansion positions it to navigate current challenges and seize future opportunities. Additionally, the Company has strong cash generation capabilities allowing her to finance current operations and investment in growth projects.

About Ten Square Games S.A.: 

Ten Square Games is a leading developer of free-to-play games with a focus on hobby and passion genres, including fishing, hunting and flying. TSG’s portfolio includes titles such as Fishing Clash – one of the most popular 3D fishing simulators in the world, Hunting Clash – a realistic hunting simulator and Wings of Heroes, which had its global premiere in October 2022. Founded in 2011, Ten Square Games went public on the Warsaw Stock Exchange in 2018.