Ten Square Games (TEN) Q2 2024 earnings summary

Executive summary

• Q2 2024 focused on growth in main products through revised monetization, enhanced LiveOps, automation, and R&D tools, improving operational quality and decision-making.

• Three game prototypes are in development, with two to be market tested by end-2024, reflecting agile project management.

• Cost discipline and financial efficiency supported profitability and adaptability.

• H1 2024 revenue was PLN 198.1m, down 11% year-over-year, with net profit at PLN 40.0m versus a net loss of PLN 5.3m in H1 2023.

• Adjusted EBITDA for H1 2024 reached PLN 54.8m, up 11% year-over-year, driven by cost discipline and lower one-off charges.

Financial highlights

• Q2 2024 revenues were PLN 98.0M, down from PLN 100.1M in Q1 2024.

• Adjusted EBITDA was PLN 27.3M in Q2 2024, with a margin of 28%.

• Net profit increased by 22.8% quarter-over-quarter to PLN 22.0M in Q2 2024.

• Net cash flows from operating activities reached PLN 26.8M in Q2 2024; H1 2024 net cash from operating activities was PLN 59.3m.

• Cash and cash equivalents stood at PLN 95.0M at quarter-end, down from PLN 162.8m at the start of the year.

Outlook and guidance

• Growth acceleration is expected in Wings of Heroes in H2 2024.

• Q3 2024 plans include new gameplay features and anti-churn strategies for main titles.

• Management set an Adjusted EBITDA target for 2024 of at least PLN 105m, with incentive programs tied to performance above this level.

• Continued focus on increasing the share of TSG Store in total bookings.