Ten Square Games (TEN) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 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, reflecting improved profitability despite lower sales.

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

• The company executed a major share buyback, purchasing 954,166 shares (13% of capital) for PLN 114.6m, with most shares subsequently cancelled.

Financial highlights

• Bookings for H1 2024 were PLN 195.9m, down from PLN 224.8m in H1 2023.

• Operating profit (EBIT) was PLN 42.4m, compared to a loss of PLN 4.8m in H1 2023.

• Net cash from operating activities was PLN 59.3m, stable year-over-year.

• Net cash outflow from investing activities was PLN 13.9m; financing outflow was PLN 115.1m, mainly due to the share buyback.

• Cash and cash equivalents at period end were PLN 95.0m, down from PLN 162.8m at the start of the year.

Outlook and guidance

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

• No material events after the balance sheet date except for the registration of share cancellation.