Ten Square Games (TEN) Q4 2024 earnings summary

Executive summary

• 2024 was marked by financial resilience, with stable EBITDA and strong cash generation despite a 10.3% year-over-year decline in bookings to PLN 398.1M, supported by cost-cutting initiatives and absence of major one-offs.

• Net profit surged 341% year-over-year to PLN 67.1M, aided by cost discipline and no significant write-offs.

• A record buyback was executed in Q1/February 2024 (PLN 140.6M/PLN 114.6M), and a dividend of PLN 100M (20% yield) is proposed for 2025.

• The company focused on engagement in Q4 2024 and plans to shift to monetization improvements in 2025, especially for Fishing Clash and Hunting Clash.

• Strong cash and equivalents at year-end, rising to PLN 143.8M despite significant outflows for buybacks and earnouts.

Financial highlights

• Adjusted EBITDA for 2024 reached PLN 109.7M, down 7.5% year-over-year, with no major write-offs or one-off events.

• Q4 2024 bookings were PLN 99.9M, down 2.3% sequentially; 2024 bookings totaled PLN 398.1M, down 10.3% year-over-year.

• Q4 2024 net profit was PLN 14.6M, up 16.8% sequentially; 2024 net profit was PLN 67.1M, up 341% year-over-year.

• Adjusted EBITDA margin for 2024 was 24%, with gross margin stable at 83%.

• Stable cash flow from operating activities, with a year-end cash balance of PLN 143.8M.

Outlook and guidance

• 2025 will emphasize monetization improvements and growth in key titles, with new hires expected to drive these initiatives.

• Strategy focuses on stabilizing Fishing Clash and Hunting Clash, accelerating Wings of Heroes, and launching new titles.

• Strategic M&A is planned for 2026, with readiness to add another studio and scale up games.

• A new long-term incentive program for management is being developed, tied to three-year adjusted EBITDA and stock performance.

• Final decisions on Trophy Hunter and Real Combat Simulator expected in 2025 after ongoing market tests.