Ten Square Games Sa · GPW:TEN
Ten Square Games Sa — Q2 2019 Earnings Presentation
21 slides from Ten Square Games Sa's earnings presentation, Sep 4, 2019
Slide 1: Q2 2019 Results
ten square games Q2 2019 Results August 2019
Slide 2: Ten Square Games – F2P sporting games leader
Ten Square Games – F2P sporting games leader 190 people F2P games ~ 90% STRENGTHENED TEAM 8 LARGE PROJECTS OF INTERNATIONAL SALES PLN 80.7 m PLN 7.4 m PLN 4.5 m 1H 2019 revenue 1H 2019 revenue 1H 2019 revenue 2
Slide 3: 1H 2019 Results
1H 2019 Results 3
Slide 4: Executive summary
Executive summary • Very good financial results • Good sales results of Fishing Clash in the consecutive quarter • PLN 95.2 m revenue in 1H 2019 – increase by 148% y/y and 10% q/q • PLN 13.1 m net profit in Q2 2019- increase by 87% y/y and 26% q/q • PLN 28.9 m EBITDA in 1H 2019 • Preparations for Fi
Slide 5: Fishing Clash – steady growth of the results
Fishing Clash – steady growth of the results Payments (PLN m) • 15% increase in payments q/q in Q2 2019 43,1 34,8 37,5 28,8 • Successful Closed Beta tests on the Chinese market, iOS launch 17,5 7,6 • Active game management through live-ops 0,1 0,3 0,7 2,7 • Game development (new fish, new fisheries)
Slide 6: Fishing Clash – effective marketing strategy
Fishing Clash – effective marketing strategy Payments and marketing expenses (PLN m) 16,7 • Record-breaking payments in July 2019 as a result of effective 14,6 14,7 marketing strategy 14,5 13,9 12,7 • PLN 14.1 m spent on the promotion of the Fishing Clash game in 10,8 11,9 Q2 2019 11,4 10,9 10,1 10,
Slide 7: Let's Fish – big technological change
Let’s Fish – big technological change Payments (PLN m) 4,7 4,2 4,3 4,1 3,7 3,7 • PLN 3.3 m revenue in Q2 2019 compared to PLN 3.7 m in Q2 3,2 3,3 2,9 2018 – a decrease by 11% y/y 2,5 • Difficult technological change in Q2 2019 – transfer from Flash to Html5 technology Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 •
Slide 8: Wild Hunt – stable 6 months of 2019
Wild Hunt – stable 6 months of 2019 Payments (PLN m) 2,4 • 133 % increase in revenue in Q2 2019 y/y 2,0 2,1 1,3 • PLN 2.1 m in revenue in Q2 2019 compared to PLN 0.9 m in 0,9 Q2 2018 0,7 0,3 0,4 0,1 0,1 • PLN 0.2 m spent on the promotion of Wild Hunt game in Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 201
Slide 9: High dynamic of revenue growth
High dynamic of revenue growth Dynamic growth of revenue thanks to high monetization of mobile games, mainly Fishing Clash Revenue (PLN k) Geographical and product structure of revenue Fishing Clash Other 5% x 2,1 y/y 12% North America Europe 49 878 43% Q2 2019 Asia Other 45 304 40% 41 551 35 436 4%
Slide 10: Operating costs under control
Operating costs under control Operating costs without selling costs Selling cost Marketing COGS G&A expenses • Increase in operating costs related to a Commission gradual increase in headcount (project Revenue share teams, general departments) Other Selling expenses without marketing (% • Increase i
Slide 11: Financial performance resulting from revenue growth
Financial performance resulting from revenue growth EBITDA Net profit 16,7 16,4 13,0 12,5 • The second-best quarter in terms of results in the Company’s history 13,7 13,1 • Increase in EBITDA by 84% y/y 8,9 • Increase in net profit by 75% y/y 10,2 10,4 6,4 PLN m • IPBOX – tax interpretation in comin
Slide 12: Strong CFO results in growing cash on the balance sheet
Strong CFO results in growing cash on the balance sheet Cash flow Balance Sheet Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 • CFO resulting from financial performance – lower figure in Q2 2019 due to CIT payment for 2018 (PLN 7.7 m) 17,6 11,8 12,0 19,5 8,4 3,5 6,2 • CFI i
Slide 13: 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 13
Slide 14: Wide, diversified pipeline of new projects
Wide, diversified pipeline of new projects • Successful Beta of the first title is over, Live next test is coming • Soft launch: 04.2019 soon • 6 markets • We are proceeding • Intensive work on to Soft Launch changes in • Project progression gameplay and H5 according to schedule design after • Soft
Slide 15: IR contact
IR contact CC GROUP Tomasz Pelczar e-mail: tomasz.pelczar@ccgroup.pl tel. +48 697 613 011
Slide 16: Attachments
Attachments
Slide 17: Results summary
Results summary Selected items of P&L (PLN k) Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 q/q y/y Revenue 5 171 5 055 6 794 10 012 14 400 23 871 35 436 41 551 45 304 49 878 +10% +109% Fishing Clash 86 279 705 2 732 7 560 17 527 28 846 34 831 37 524 43 147 +15% +146% Let’s Fish 2 909
Slide 18: Revenue by regions
Revenue by regions (PLN k) Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 q/q y/y North America 1 162 1 247 1 581 2 672 4 822 10 938 15 732 16 254 18 841 21 646 +15% +98% Europe 2 962 2 626 3 685 5 222 6 404 8 818 14 597 19 344 19 059 19 790 +4% +124% Poland 919 729 1 028 1 558 1 556 1
Slide 19: 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
Slide 20: 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 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