Ten Square Games (TEN) Q3 2024 earnings summary

Executive summary

• Q3 2024 bookings rose 6.3% quarter-over-quarter to PLN 102.3M, driven by growth in main titles and Wings of Heroes, with cost discipline supporting the rebound.

• Bookings for the first nine months of 2024 totaled PLN 298.2M, down 11% year-over-year, but net profit for the period reached PLN 52.5M, up from PLN 16.9M in 2023.

• Adjusted EBITDA for Q3 2024 was PLN 26.5M, with quarterly results stabilizing around PLN 27M despite increased UA spend.

• Continued investment in user acquisition and prototyping, with two promising projects advancing and one discontinued due to weak KPIs.

• TSG Store's share in group bookings reached 14% in October 2024, reflecting successful integration and promotion.

Financial highlights

• Revenues from sales in Q3 2024 were PLN 94.0M, with 1-9/2024 revenues at PLN 292.1M, down from PLN 328.0M year-over-year.

• Adjusted EBITDA for 1-9/2024 was PLN 81.3M, with Q3 Adjusted EBITDA at PLN 26.5M.

• Net profit for Q3 2024 was PLN 12.5M; for 1-9/2024, net profit was PLN 52.5M, up from PLN 16.9M in 2023.

• Net cash flow from operating activities reached PLN 28.1M in Q3 2024; cash at period end was PLN 121.4M, down from PLN 162.8M at 2023 year-end due to share buyback.

• Earnings per share for 1-9/2024 were PLN 7.44 (basic), up from PLN 2.30 year-over-year.

Outlook and guidance

• Plans to introduce new monetization solutions and progression systems in main titles in Q4 2024.

• Q4 2024 results will depend on improvements in Fishing Clash and Hunting Clash, continued growth of Wings of Heroes, and the global economic environment.

• Ongoing prototype testing (Trophy Hunter, Rortos project) will determine future new game launches; rapid market validation is prioritized.

• Investor updates and Q4 2024 sales update scheduled for early January 2025.