Ten Square Games Sa · GPW:TEN
Ten Square Games Sa — Q2 2024 Earnings Presentation
33 slides from Ten Square Games Sa's earnings presentation, Aug 26, 2024
Slide 1: Q2 2024 Presentation
— & ten square games Oe 2024 HH) PRESENTATION —ss//’
Slide 2: Q2 2024 At a Glance
Slide 3: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS Q1’24 / Q2’24 Execution of the plan to unlock the growth potential of main titles Bookings PLN -3.4% q-o-q PLN 99.7M 96.2M Focus on quality Q1’24 / Q2’24 Adj. EBITDA Focus on monetization strategy (LiveOps) PLN -0.5% q-o-q PLN 27.5M 27.3M Acceleration of growth (Wings of Heroes &
Slide 4: Product Performance Update
PRODUCT PERFORMANCE UPDATE
Slide 5: Fishing Clash setting the stage for stronger tomorrow
Fishing clash setting the stage for stronger tomorrow ■ Q2’24 bookings decreased by 2.6% q-o-q. Main focus of the team was on improvement of quality of user experience and LiveOps operations based on feedback from users ■ Formulation of anti-churn strategy and its implementation in daily M PLN opera
Slide 6: Hunting Clash on the path to unlocking growth
Hunting clash on the path to unlocking growth ■ Bookings decreased by 6.8% q-o-q in Q2’24. ■ Focus of the team was on implementation of changes in LiveOps operations to support game’s monetization. First positive results especially in quality & diversity of events, Also, new features supporting user
Slide 7: Wings of Heroes flying high with consistent growth
Wings of Heroes flying high with consistent growth ■ Growth of bookings by 19.6% q-o-q in Q2’24 ■ Introduction of squadron feature & skins for planes at the end of April improved engagement and monetization; further growth of monetization KPIs. ■ Introduction of featured game mode improved matchmaki
Slide 8: Update on Prototype Development
UPDATE ON PROTOTYPE DEVELOPMENT
Slide 9: Prototyping for success
PROTOTYPing for success TROPHY HUNTER Flying Next 1 phase test of simple gameplay with 1. (i) more developed prototype than Trophy early conceptual phase technical limited content launch - promising results Hunter with at least 3 locations at start and larger 1 & 2 phase amount of content technical
Slide 10: TSG Store: new initiatives to further boost the growth
TSG STORE: new initiatives to further boost the growth TSG Store % share in Group’s bookings 18.2% share of TSG Store bookings in FC (June 2024) Growth of revenues flow through TSG Store in Hunting Clash (introduction of coupons) Improvement of quality and graphic design of offers to underline benef
Slide 11: Financial Results
FINANCIAL RESULTS
Slide 12: Profit and loss dynamics
Profit and loss dynamics PLN m Q1’23 Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Revenues from sales 117.4 104.9 105.6 108.1 436.1 100.1 97.9 1 Slight decrease in bookings (4.3%) q-o-q , due to a weaker performance of Fishing Clash and 1 Bookings 123.6 101.2 110.4 108.5 443.7 99.7 96.2 Hunting Clash. 3rd con
Slide 13: Cash flow generation with a strong cash pool
Cash flow generation with a strong cash pool M PLN Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Adjusted EBITDA 27.6 21.9 33.7 35.3 27,489 27,343 Net Cash Flows from Operating Activities 29.9 28.6 32.5 30.5 32.4 26.8 Net Cash Flows from Investing Activities (14.7) (9.5) (2.0) (0.3) (1.4) (12.5) Net Cash Flow
Slide 14: Other information
other information Adoption of resolution to cancel 858.822 Company’s own shares and decrease Company’s share capital (23.05.2024) Positive results of restructuring measures Cancellation of shares on July 3rd 2024 (effective date) as a result Company’s share capital amounts to Gamesture with positive
Slide 15: Summary
SUMMARY
Slide 16: Summary: first signs of turn around
sUMMARY: first signs of turn around Focus on unlocking growth in main products Prototyping for success ■ Revision of monetization strategy in main ■ 3 prototypes of games in different products stages of development (2 market ■ Adaptation of best practices in LiveOps tested till the end of 2024) oper
Slide 17: Investor's Calendar
INVESTOR’S CALENDAR
Slide 18: Investor's calendar
Investor’s calendar Company news flow: ■ Q3 2024 Sales Update – early October 2024 ■ Q3 2024 Financial Report – 13th November, 2024 ○ Conference call on TSG’s performance in Q3 2024 - 14th November 2024 at 12:00 P.M. ○ Chat with individual investors on TSG’s performance in Q3 2024 - 14th November 20
Slide 19: Q&A Session
O&A SESSION
Slide 20: Buyback vs dividend
buyback vs dividend Division of profits with shareholders Buyback with cancellation Dividend payment of 100% shares autonomous decision of a autonomous decision of a Applies by default to all shareholders shareholder to participate shareholder not to participate cash increase in share capital and in
Slide 21: Buyback vs dividend - example
buyback vs dividend - example Buyback Dividend An investor owns 5,000 shares of a listed company. The share capital consists of of Investor’s decision Investor’s decision automatic process 10,000,000 shares each at to participate affecting all NOT to participate 100.0 PLN. shareholders The company i
Slide 22: Buyback of shares in TSG
Buyback of shares in tsg BUYBACK INFO BUYBACK Effect in TSG February 12-22,2024 954,166 62.2% number of shares bought by TSG investors participation ratio 79.1% 13% of share capital proportional reduction ratio for all participants (for each 1000 shares => 201 shares sold) PLN 114.5m 90% of bought s
Slide 23: Contact details
Contact details: Nina Graboś – IR, PR & ESG Director nina.grabos@tensquaregames.com
Slide 24: Financial Results
FINANCIAL RESULTS
Slide 25: Profit and loss report
Profit and loss report Selected positions in k PLN Q1’23 Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Revenues from sales 117,450 104,932 105,572 108,122 436,076 100,118 97,998 Fishing Clash 72,558 63,194 69,738 68,743 274,232 61,219 59,597 Let’s Fish 2,172 1,852 1,614 1,890 7,529 1,732 1,763 Wild Hunt 2,353
Slide 26: Balance sheet
Balance sheet Selected positions in k PLN* 31.03.23 30.06.23 30.09.23 31.12.23 31.03.24 30.06.24 ASSETS Fixed assets 297,613 279,861 285,980 215,779 214,234 212,420 Receivables 41,096 31,606 36,293 38,937 36,253 33,741 Cash and cash equivalents 140,249 105,379 133,820 162,826 76,784 94,971 Current a
Slide 27: Cash flow report
Cash flow report Selected positions in k PLN Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 OPERATING ACTIVITIES Profit/loss before tax (16,022) 10,049 23,205 (0,184) 20,720 23,266 Total adjustments 49,203 9,273 11,372 27,985 13,803 (1,784) Amortisation 5,289 5,143 4,969 4,809 4,506 4,428 Cash from operations
Slide 28: Method of determining adjusted EBITDA
Method of determining adjusted EBITDA Selected items of the P&L Statement in k Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 PLN Operating profit IFRS (14,414) 9,639 25,032 (16,739) 19.108 23,278 Amortisation +4,978 +5,143 +4,969 +4,809 +4,506 +4,428 Write-down for impairment +26,573 +5,117 - +46,528 0 0 EBIT
Slide 29: General and administrative costs
General AND administrative costs General administrative costs (PLN k) Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Recurring costs 7,510 6,454 6,860 31,398 6,287 6,905 Salaries, subcontractor services 3,683 3,207 3,070 14,495 3,039 3,011 Subsidiaries costs 1,135 1,074 ,972 4,794 926 1,023 Office rental and ma
Slide 30: Accounting principles for revenues – IFRS 15
Accounting principles for revenues – IFRS 15 Virtual currency • Payment -> a player purchases virtual currency Payment Sales revenue • Revenue -> the player uses the virtual currency to purchase a +/ virtual goods (e.g. rods, lure packs) - Deferred revenue/ Unearned revenue • Deferred revenue -> unu
Slide 31: Marketing expenses policy
Marketing expenses policy Marketing expenses „We invest in marketing provided we get positive returns throughout user lifetime” Marketing expenses model cumulative approach • The Group invests in marketing at point „0”. Cohort acquired in this period analyzed throughout user lifetime (period „0” to
Slide 32: Profit distribution to shareholders
profit DiSTRIBUTION TO shareholders Pln 200 M* Of Dividend Paid Out By TSG 2022 Profit Distribution almost 100% of consolidated net profit for 2022 paid out to shareholders; (exceeding 75% threshold of TSG’s dividend policy**) 2023 Profit Distribution PLN 114.5 M buyback of own shares in February 20
Slide 33: Legal disclaimer
Legal disclaimer ■ Neither this presentation (the “Presentation”, references to which shall be deemed to include any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) nor any copy of it nor the information contained