Despite a “challenging” start to the year with declining bookings in its biggest games, Ten Square Games has already generated more net profit in the first quarter of 2024 than it did in the entirety of 2023. That’s a profit of PLN 17.9 million ($4.6 million) versus 2023’s total of PLN 15.2 million ($3.9 million).
And zoom in purely on Q1s and 2024’s PLN 17.9 million ($4.6 million) is even more noteworthy against 2023’s Q1 loss of PLN 12.8 million ($3.3 million). Though this was partially caused by a one-off PLN 6 million ($1.5 million) expense.
2023 also saw Ten Square Games record its lowest net profit since 2017, far behind the likes of 2020’s PLN 151.6 million ($38.5 million); profits have decreased year-on-year since then, leading to a change in priorities.
Part of this year’s rise so far can be attributed to the TSG Store “accelerating” in growth and contribution. The store enables Ten Square Games to keep revenue generated from players who buy in-game currency outside of the games themselves, allowing the company to hand onto the cash rather than handing a share over to Apple and Google through hefty app store fees.
Angling for the trophy
Meanwhile, in revenue terms Ten Square Games’ Q1 takings totalled PLN 100 million ($25.4 million), with over PLN 90 million ($22.9 million) of that coming from mobile games. In fact, almost two thirds of the company’s revenue was generated by Fishing Clash alone, the title having made PLN 61.2 million ($15.6 million) in the three-month period.
Hunting Clash made the second-most at PLN 23.7 million ($6 million).
Their 2022 title Wings of Heroes generated PLN 2.9 million ($736,000) in the first quarter and was highlighted by Ten Square Games as having “caught the wind” due to “improving all metrics and surpassing short-term targets”.
Even so, KPIs in Fishing Clash have been down and its net bookings fell by 11% quarter-on-quarter, while Hunting Clash’s fell 10%. Ten Square Games’ total bookings in Q1 declined by 8.1% quarter-on-quarter, attributed to a fall in player activity since Q4 2023.
Hunting Clash, at least, achieved record user numbers with an average of 3.5 million people playing monthly in Q1. Partnerships with real-world firearms company Beretta and others have bolstered interest in the game this year, so much so that Hunting Clash is currently being “recalibrated to manage the increased user base”, in line with its 82% increase in monthly active users towards the end of last year.
Ten Square Games CFO Magdalena Jurewicz commented: “Despite unfavorable macroeconomic conditions, cost discipline and focus on creating added value by all teams in the Company allowed us to end the first quarter of 2024 with positive financial results at every level.
“Additionally, we executed a buyback of our own shares worth PLN 114.5 million, a record-high value in the company’s history. This demonstrates our commitment to returning value to our shareholders.”
Looking ahead, Ten Square Games CTO Janusz Dziemidowicz added: “Our dedication to data-driven processes and technological innovation allows us to address the core issues hindering our growth. By focusing on automation and AI, we not only eliminate repetitive errors but also empower our teams to concentrate on creative and strategic initiatives.”
In other recent financial good news, Sega has also undergone a strategy shift in recent years, leading to its latest financials being at their strongest in 10 years.
