Ten Square Games Sa · GPW:TEN
Ten Square Games Sa — Q4 2018 Earnings Presentation
25 slides from Ten Square Games Sa's earnings presentation, Apr 1, 2019
Slide 1: Q4 2018 Results
ten square games Q4 2018 Results March 2019
Slide 2: 2018 figures – IPO target delivered
2018 figures – IPO target delivered Revenue EBITDA Net profit (PLN m) (PLN m) (PLN m) 115 x4 45 X4.5 36 PLN 26 m - MSOP target 27 17 11 8 5 3 2016 2017 2018 2016 2017 2018 2016 2017 2018 • Global success of Fishing Clash • Development pipeline extended • EBITDA target exceeded significantly 2
Slide 3: Ten Square Games – F2P sporting games leader
Ten Square Games – F2P sporting games leader 160 people F2P games ~ 90% OF SALES OUTSIDE EXPERIENCED TEAM WIDE PORTFOLIO POLAND PLN 88.8 m PLN 16.5 m PLN 4.9 m 2018 Revenue 2018 Revenue 2018 Revenue 3
Slide 4: Fishing Clash – the most popular fishing game in 2018
Fishing Clash – the most popular fishing game in 2018 Top Grossing Games – monthly net revenue* 1 CANDY CRUSH SAGA $59m 10 GOLF CLASH $36m 100 HOME DESIGN MAKEOVER $5m 3.5 bn FISHES CAUGHT 140 m DUELS FISHING CLASH $1.8m 125 21 m PLAYERS 250 FAMILY FARM SEASIDE $1.3m 70 m LURE PACKS 100 000 CLANS 40
Slide 5: Q4 2018 Results
Q4 2018 Results 5
Slide 6: 2017-2018 Quarterly results
2017-2018 Quarterly results Revenue (PLN m) EBITDA Net profit x 4,3 y/y x 4,15 y/y x 3,8 y/y 13,7 41,6 16,7 advertisement licences micropayments 35,4 13,0 10,2 PLN m 23,9 7,5 8,9 6,4 5,0 14,4 PLN m 10,0 4,4 3,2 6,8 2,8 2,2 5,2 5,1 2,2 2,1 1,6 1,4 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'17
Slide 7: Q4 2018 Executive summary
Q4 2018 Executive summary • Another quarter of good financial results • Fishing Clash was the main driver of revenue growth in Q4 2018 • Let’s Fish benefits from Fishing Clash know-how; Historic high revenue both in Q4 2018 and throughout 2018 • PLN 41.6 m in revenue in Q4 2018 – increase by 315% y/
Slide 8: Fishing Clash – dynamic increase in payments
Fishing Clash – dynamic increase in payments Payments (PLN k) x 12,7 y/y • 21% increase in payments q/q in Q4 2018 as a result of 34 831 28 846 game development 17 527 • MAU stabilization in Q4 2018 and simultaneous ARPU increase 7 560 86 279 705 2 732 • Game development (new fish, new fisheries) an
Slide 9: Fishing Clash – marketing that works
Fishing Clash – marketing that works Payments and marketing expenses (PLN m) 12,7 • Payments growth along with marketing expenses 11,8 11,4 10,8 10,9 • Reduced marketing expenses in November and December 10,1 10,3 due to seasonally higher prices of marketing campaigns 8,4 • Marketing budgets increas
Slide 10: Let’s Fish benefits from Know-How development
Let’s Fish benefits from Know-How development Very strong revenues in the 7th year of the game. Payments (PLN k) • Record high quarter and year in Let’s Fish history 4 682 4 172 4 318 3 705 3 749 • PLN 16.5 m of revenue in 2018 compared to PLN 12.8 m in 3 238 2 909 2017 – increase by 28% y/y 2 491 •
Slide 11: Wild Hunt – another good game with longevity potential
Wild Hunt – another good game with longevity potential Payments (PLN k) • Dynamic 420% increase in revenue in Q4 2018 y/y related to x 5,2 y/y the improvement of game mechanics based on experience 2 021 from Fishing Clash 1 265 926 • PLN 4.9 m in revenue in 2018 compared to PLN 0.9 m in 2017 668 332
Slide 12: High dynamic of revenue growth
High dynamic of revenue growth High dynamic of revenue growth thanks to high monetization of mobile games, mainly Fishing Clash Revenue (PLN k) Geographical and product structure of revenue 6% 11% North America Fishing Clash x 4,15 y/y 41 551 38% Europe Other Q4 2018 Asia 35 436 Other 45% 23 871 5%3
Slide 13: Operating costs under control
Operating costs under control Operating costs without selling costs Selling cost Marketing COGS G&A expenses • Stable COGS (mainly team Commission remuneration and depreciation of Revenue share active titles) and G&A Other Selling expenses without marketing 8,6 (%) • Stable level of selling costs ex
Slide 14: Financial performance resulting from revenue growth
Financial performance resulting from revenue growth EBITDA Net profit x 3,8 y/y 16,7 13,0 • Dynamic increase in financial performance due to sales increase and maintaining x 4,3 y/y discipline on the cost side 13,7 8,9 • Increase in EBITDA by 28% q/q and 280% y/y 10,2 6,4 • Increase in net profit by
Slide 15: Strong CFO results in growing cash on the balance sheet
Strong CFO results in growing cash on the balance sheet Cash flow Balance Sheet Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 12,0 • CFO growth resulting from strong 13,5 financial performance 17,6 39,8 • Very good capital situation – cash PLN m PLN
Slide 16: Strategy
Strategy 16
Slide 17: Strategy – we are building a portfolio of games maintained for years
Strategy – we are building a portfolio of games maintained for years IPO Mobile First Let’s Fish 17
Slide 18: Wide, diversified pipeline of new projects
Wide, diversified pipeline of new projects Company has publishing comfort by the end of 2020. Live H5 Game for Product A women Number of Projects Game for 2019 Product B Hobby women 2020 Soft Launch Global Launch Ideas Pre-production Production Time 18
Slide 19: New hobby game
New hobby game A game based on Fishing Clash experience in the outdoor-simulation theme 19
Slide 20: IR contact
IR contact CC GROUP Tomasz Pelczar e-mail: tomasz.pelczar@ccgroup.pl tel. +48 697 613 011
Slide 21: Disclaimer
Disclaimer This presentation is solely of informative nature and aimed at presenting the selected information about Ten Square Games (hereinafter: TEN). This presentation uses the sources of information that TEN considers reliable and accurate; however, it cannot be guaranteed that they are complete
Slide 22: Attachments
Attachments
Slide 23: Results summary
Results summary Selected items of P&L (PLN k) Q1’17 Q1’18 y/y Q2’17 Q2’18 y/y Q3’17 Q3’18 y/y Q4’17 Q4’18 y/y Revenue 5 171 14 400 178% 5 055 23 871 372% 6 794 35 436 422% 10 012 41 551 315% Fishing Clash 86 7 560 8 656% 279 17 527 6 189% 705 28 846 3 993% 2 732 34 831 1 175% Let’s Fish 2 909 3 705
Slide 24: Revenue by regions
Revenue by regions PLN k Q1’17 Q1’18 y/y Q2’17 Q2’18 y/y Q3’17 Q3’18 y/y Q4’17 Q4’18 y/y North America 1 162 4 822 315% 1 247 10 938 777% 1 581 15 732 895% 2 672 16 254 508% Europe 2 962 6 404 116% 2 626 8 818 236% 3 685 14 597 296% 5 222 19 344 270% Poland 919 1 556 69% 729 1 762 142% 1 028 2 534 1
Slide 25: Changes in accounting principles
Changes in accounting principles Changes in booking revenues according to IFRS 15 „Revenue is recognized when the customers has received all the benefits associated with the performance obligation” • Payment -> a player purchases virtual currency Payment Revenue • Revenue -> the player uses the virt