Ten Square Games (TEN) Q4 2024 earnings summary

Executive summary

• 2024 was marked by financial resilience, with net profit surging 341% year-over-year to PLN 67.1m despite a 10.3% decline in bookings and an 11.4% drop in revenue, supported by cost discipline and stable EBITDA.

• Adjusted EBITDA for 2024 reached PLN 109.7m, down 7.5% year-over-year, with no major one-offs and a sequential Q4 increase.

• A record share buyback of PLN 140.6m was executed in February 2024, reducing share capital by 13% and increasing EPS to PLN 9.71.

• A proposed dividend of PLN 100m for 2025 reflects a 20% yield, with strong cash generation and a year-end cash balance of PLN 143.8m.

• The company focused on engagement in Q4 2024 and plans to shift to monetization improvements and new title launches in 2025.

Financial highlights

• Bookings for 2024 were PLN 398.1m, down 10.3% year-over-year, with Q4 bookings at PLN 99.9m.

• Net profit for 2024 was PLN 67.1m, up from PLN 15.2m in 2023, and Q4 net profit reached PLN 14.6m.

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

• Net operating cash flow was PLN 113.9m, with cash and equivalents at PLN 143.8m at year-end.

• Cost of sales, selling, and administrative expenses all declined year-over-year.

Outlook and guidance

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

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

• Management incentive programs target adjusted EBITDA of PLN 105–135m for 2024–2025 and include a new 5-year MSOP plan.

• Final decisions on new prototypes expected in 2025 after ongoing market tests.

• Management expects continued operations for at least 12 months post-balance sheet date, with no known threats to going concern.