5 February 2024
The Management Board of Ten Square Games S.A. based in Wrocław (“Company”) informs that in the course of work on the stand alone and consolidated financial statements for 2023, the Company recorded additional one-off events that will affect the results of the Group and Ten Square Games S.A. in 2023.
Ten Square Games S.A. is a minority shareholder in Gamesture Sp. z o. o. with 36.9% of shares. Gamesture Sp. z o. o., like Ten Square Games S.A., underwent restructuring process in 2023, including, among others decreasing of employment in the company. The decision of the Management Board of Gamestue Sp. z o.o. to stop development of one of the studio’s titles and write off the costs incurred to create the game was an element of the restructuring process in Gamesture Sp. z o. o. The main reason to cease further development of the game was the need to incur additional costs to further develop the title. In 2024, Gamesture sold the rights to this title to a third party.
Due to the cost of the write-off development cost and the loss from the operating activities of Gamesture Sp. z o. o., Ten Square Games S.A. will record a loss on the investment in associates of approximately PLN 3.3 million in the fourth quarter of 2023. The above event is of a non-cash nature.
Based on the audit of tax liabilities, the Company decided to correct the historical settlement of sales tax outside the country in 2020-2022. The year 2023 does not require adjustment. For this reason, the Company will report a tax liability in the amount of approximately PLN 2.4 million as at December 31, 2023, while the interest on this liability will be settled in 2024. The above adjustment will be included:
– in the opening balance as of January 1, 2022 in the amount of approximately PLN 1.65 million
– in sales revenues in 2022 in the amount of approx. PLN 0.73 million.
The amounts given individually or cumulatively are not significant from the perspective of the financial condition of the Group and Ten Square Games S.A. and do not affect the liquidity situation of the Company and the Group. The values provided are estimates that may still change, and their final value will be provided in the stand alone and consolidated financial statements for 2023.
The Company decided to publish the above information to ensure equal access to information and transparency of communication to all shareholders.