Ten Square Games Sa · GPW:TEN
Ten Square Games Sa — Q1 2019 Earnings Presentation
21 slides from Ten Square Games Sa's earnings presentation, May 28, 2019
Slide 1: Q1 2019 Results
ten square games Q1 2019 Results May 2019
Slide 2: Ten Square Games – F2P sporting games leader
Ten Square Games – F2P sporting games leader 170 people F2P games ~ 90% EXPERIENCED TEAM WIDE PORTFOLIO OF INTERNATIONAL SALES PLN 37.5 m PLN 4.1 m PLN 2.4 m Q1 2019 revenue Q1 2019 revenue Q1 2019 revenue 2
Slide 3: Q1 2019 Results
Q1 2019 Results 3
Slide 4: Q1 2019 Executive summary
Q1 2019 Executive summary • Another quarter of good financial results • Fishing Clash game again on the growth path mainly due to increased marketing expenses • PLN 45.3 m revenue in Q1 2019 – increase by 215% y/y and 9% q/q • PLN 10.4 m net profit in Q1 2019 – increase by 107% y/y and -24% q/q • PL
Slide 5: Fishing Clash – dynamic increase in payments
Fishing Clash – dynamic increase in payments Payments (PLN k) 34 831 37 524 • 7,7% increase in payments q/q in Q1 2019 28 846 • Fishing Clash game main source of revenue in Q1 2019 17 527 • Dynamic growth in MAU q/q among others featuring 7 560 86 279 705 2 732 • Active game management through live-
Slide 6: Fishing Clash – marketing that works
Fishing Clash – marketing that works Payments and marketing expenses (PLN m) 14,7 14,6 • Record payments in Q1 2019 as a result of increased marketing budgets 12,7 11,9 11,4 • PLN 15.1 m spent on the promotion of the Fishing Clash game in 10,8 10,9 Q1 2019 10,1 10,3 • Marketing expenses in March 201
Slide 7: Let's Fish benefits from improved Know-How
Let’s Fish benefits from improved Know-How Very strong revenues in the 7th year of the game. Payments (PLN k) 4 682 4 172 4 318 4 096 3 705 3 749 • PLN 4.1 m revenue in Q1 2019 compared to PLN 3.7m in 3 238 2 909 Q1 2018 – increase by 11% y/y 2 491 • MAU and ARPU stabilization in Q1 2019 Q1 Q2 Q3 Q4
Slide 8: Wild Hunt – another good game with longevity potential
Wild Hunt – another good game with longevity potential Payments (PLN k) 2 439 • A dynamic 265% increase in revenue in Q1 2019 y/y 2 021 1 265 • PLN 2.4 m revenue in Q1 2019 compared to PLN 0.7m in Q1 926 2018 668 332 389 56 86 • PLN 0.4 m spent on marketing of Wild Hunt in Q1 2019 Q1 Q2 Q3 Q4 Q1 Q2
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 5% 11% North America Fishing Clash x 3,1 y/y 45 304 Europe 42% Other 41 551 Q1 2019 Asia Other 42% 35 436 5%3% 23 8
Slide 10: Operating costs under control
Operating costs under control Operating costs without selling cost Selling cost Marketing COGS G&A expenses • Stable COGS (a small increase in Commission these costs due to increase in Revenue share employment) Other Selling expenses without • Increase in commission resulting from marketing (% of re
Slide 11: Finance performance resulting from revenue growth
Finance performance resulting from revenue growth EBITDA Net profit 16,7 13,0 12,5 • Lower results q/q in Q1 2019 related to higher marketing expenses 13,7 8,9 • Increase in EBITDA by 94% y/y 10,2 10,4 6,4 • Increase in net profit by 107% y/y PLN m 7,5 PLN m 4,4 5,0 2,8 2,2 3,2 2,1 2,2 1,6 1,4 1Q'17
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 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 19,5 • CFO resulting from strong financial performance 12,0 17,6 • Very good capital structure – cash PLN m PLN
Slide 13: Wide, diversified pipeline of new projects
Wide, diversified pipeline of new projects Company has publishing comfort by the end of 2020 Live H5 • Soft launch: 04.2019 • Poland, Italy, Brazil, Indonesia, Australia • 20 ths. test registrations • product changes and KPI monitoring in Games for progress Product A women Number of Projects Games f
Slide 14: IR contact
IR contact CC GROUP Tomasz Pelczar e-mail: tomasz.pelczar@ccgroup.pl tel. +48 697 613 011
Slide 15: Attachments
Attachments
Slide 16: Strategy – we are building a portfolio of game maintained for years
Strategy – we are building a portfolio of game maintained for years IPO Mobile First Let’s Fish 16
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 q/q y/y Revenue 5 171 5 055 6 794 10 012 14 400 23 871 35 436 41 551 45 304 +9% +215% Fishing Clash 86 279 705 2 732 7 560 17 527 28 846 34 831 37 524 +8% +396% Let’s Fish 2 909 2 491 3 238 4 172 3 70
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 q/q y/y North America 1 162 1 247 1 581 2 672 4 822 10 938 15 732 16 254 18 841 +16% +291% Europe 2 962 2 626 3 685 5 222 6 404 8 818 14 597 19 344 19 059 -1% +198% Poland 919 729 1 028 1 558 1 556 1 762 2 534 3 598 3 3
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