Current report no. 12/2024 .

14 March 2024

The Management Board of Ten Square Games S.A. based in Wrocław (“Company”) informs that in the course of work on the standalone and consolidated financial statements for 2023, the Company recorded an additional one-off event that will affect the results of the Group and Ten Square Games S.A. in 2023.

The write-off is related to Gamesture Sp. z o. o. (Gamesture), in which Ten Square Games S.A. is a minority shareholder (36.9%). In current report 6/2024 of February 5, 2024, the Company informed that Gamesture recognized a write-off of the costs incurred for the development of one of the games, and Ten Square Games S.A. recorded a loss from participation in associated entities in the fourth quarter of 2023 of approximately PLN 3.3 million, which included its % shares in the amount of the above write-off and loss from Gamesture’s operating activities. The write-off was related to Gamesture’s decision to discontinue further development of a game from the RPG segment and to focus on the development of social wars genre games. In 2023, the loss on the investment in Gamesture amounted to PLN 5.8 million.

After the year-end impairment tests of shares in Gamesture Sp. z o. o. performed in accordance with IAS 36 and consultations with the certified auditor, the Management Board of Ten Square Games decided to record an additional write-down revaluating the value of shares in Gamesture in the amount of PLN 5.4 million (the cost will be disclosed in the item “Other operating costs”). The above-mentioned write-off will directly reduce the result of Ten Square Games S.A. and the result of the Ten Square Games Group by PLN 5.4 million in the fourth quarter of 2023.

The Management Board would like to emphasize that the posting of the above write-off is strictly non-cash and, in the opinion of the Management Board, does not affect the running of the business and does not in any way mean a change in strategy. The Company’s Management Board believes in the development potential of Gamesture, in particular in the newly chosen development direction, i.e. social wars games, and the positive impact of Gamesture’s strategy change should be visible in the affiliate’s results over the next few quarters.