Despite a challenging market environment, Ten Square Games S.A. (TSG, the Company) reported a stable result with adjusted EBITDA at PLN 27.3 million. The Group’s strong cash generation potential remains a key strength. The Group’s net profit for Q2 2024 amounted to PLN 22 million, reflecting significant improvement both year-on-year and quarter-on-quarter. The Company also made substantial progress in executing its plan to enhance the performance of its main products, Fishing Clash and Hunting Clash, and accelerate the development of Wings of Heroes. Additionally, Rortos has joined the Group’s development initiatives, including the testing of new game prototypes, further increasing the prospects for future growth.

Our Q2 2024 results underscore the strength of TSG’s business model, even in a challenging market environment. The consistent execution of our strategic plan is critical to reversing the Group’s revenue trend, and we are pleased to see the first effects of these efforts in the form of improved revenue dynamics. This remains our top priority in the second half of 2024 as well,” said Andrzej Ilczuk, CEO of Ten Square Games S.A. At the same time, we are intensively working on the development of three game prototypes, which offer us opportunities to expand our reach, attract new players, and explore new business models in the future.

Resilient Financial Performance Amid Market Challenges

In Q2 2024, the Group’s bookings reached PLN 96.2 million, representing a slight decrease of 3.4% compared to Q1 2024. This decrease was primarily due to drops in bookings for Fishing Clash and Hunting Clash, partially offset by growth in Wings of Heroes, which saw an increase in bookings for the third consecutive quarter. The consistent execution of TSG’s strategic plan was evident throughout the quarter, as the company focused on stabilizing its key titles, improving game KPIs, and delivering new features through updates in its main products. The Group made significant progress in advancing two game prototypes, while Rortos, a subsidiary of TSG, also initiated work on its own prototype—all of which are aimed at driving future growth and expanding the company’s portfolio.

Strategic Enhancements Drive Recovery in Key Titles

Fishing Clash, one of the Group’s flagship titles, saw a 2.6% decline in bookings quarter-on-quarter, totaling PLN 59.6 million. However, the implementation of a focused anti-churn strategy, along with numerous technical improvements and changes based on extensive player feedback in the first half of 2024, led to a recovery, with bookings increasing by 6.6% in July compared to June. In the first quarter of 2024, the game introduced a new gameplay mode, ‘Clan Games,’ which was further developed and enhanced throughout the second quarter. Building on this, at the beginning of August 2024, the game was further enriched with the introduction of the ‘Arena’ mode, bringing a new level of excitement to clan competitions. In the following quarters of 2024, the Fishing Clash team will focus on improving the user experience in the game in line with the anti-churn strategy. Planned updates aim to enhance competition-related functionalities and place even greater emphasis on the social aspects of Fishing Clash.

Hunting Clash saw a 6.8% decline in bookings in Q2 2024 compared to the previous quarter. However, the game began to benefit from its most significant update since launch, which paved the way for further development of the game. The team worked on enhancing the game’s technological performance and overall player experience by introducing a new visualization of player progress and time-limited leaderboards. The first positive effects of changes in LiveOps operations are also already evident. Also, the addition of features such as the Materials & Trophy collection significantly boosted player engagement and monetization, resulting in a 12.5% increase in bookings in July, making it the second-best month for the title in 2024.

Wings of Heroes continued its growth trajectory, with bookings increasing by 19.6% quarter-on-quarter in Q2 2024, reaching PLN 3.5 million. The development team focused on improving the matchmaking system for battles in the second quarter of 2024, including the introduction of a featured gameplay mode. Another change allowed players to exchange spare parts for planes for other useful items. Additionally, various technical improvements were made, and three new ad locations were added to the game to increase revenue.

The plans for the coming months are centered on enhancing the social aspect of the game. This includes further development based on squadrons and the introduction of competition between them, with work on this functionality already underway.

In July 2024, bookings in Wings of Heroes amounted to PLN 1.6 million, an increase of 27.1% compared to June this year. This was also the highest result achieved by the game in 2024.

The TSG Store also made significant contributions, with its share of the Group’s total bookings reaching 18.2% in June 2024. The store’s expanding role in the Group’s ecosystem is driving improved financial efficiency, as reflected in the overall positive performance.

Innovative Prototypes Set the Stage for Future Growth

TSG is actively working on two key prototypes—Trophy Hunter and Fishing Champions—targeted at different demographic groups and offering entirely distinct gameplay experiences compared to TSG’s current portfolio. Trophy Hunter has already undergone initial market testing, with insights from these tests used to further develop the prototype and inform work on the second prototype, Fishing Champions. The market test for Fishing Champions was delayed to incorporate solutions based on the feedback and findings from Trophy Hunter’s testing. Additionally, Rortos, a subsidiary of TSG, has joined the Group’s development initiatives by starting work on a new aviation game prototype, which is currently in the very early conceptual stage.

Looking forward, TSG will continue to prioritize the enhancement of its existing titles and testing of new projects. The Group remains committed to leveraging data-driven insights and technological advancements to drive monetization and player engagement. Additionally, the company will maintain its cost discipline and focus on expanding the TSG Store’s impact on overall bookings, contributing to sustained financial efficiency.