Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ten Square Games SA (FRA:1HQ, Financial) demonstrated financial resilience in 2024, maintaining stable cash flow and generating cash quarter to quarter.
- The company successfully implemented cost-cutting initiatives, which helped maintain solid financial results despite decreasing bookings.
- The introduction of new monetization strategies for their games is planned, aiming to improve revenue and engagement KPIs.
- Wings of Heroes showed a triple increase in monetization, indicating successful product development and potential for further growth.
- The company plans to pay a dividend of 100 million Polish zlotys, reflecting a commitment to sharing profits with stakeholders.
Negative Points
- The global gaming market remains uncertain, with mixed signals affecting player behavior and bookings, particularly in North America.
- There was a decrease in net profit quarter on quarter, attributed to a focus on player engagement rather than immediate monetization.
- The company faces challenges in increasing marketing expenditure for user acquisition due to fluctuating effectiveness of marketing strategies.
- The number of new game releases in 2024 was the lowest in over a decade, indicating potential stagnation in product innovation.
- There is uncertainty regarding the completion and outcome of a delayed tax audit, which could impact financial planning.
Q & A Highlights
Q: How has the global gaming market been performing, and what are the expectations for its future?
A: Andrzej Ilczuk, Chairman of the Management Board, explained that the market is still in a transitory period with mixed signals. While Europe and other markets are doing well, North America faces uncertainty, affecting player behavior. The company has hired experts from North America to better address these challenges.
Q: What are Ten Square Games' plans for development in the upcoming quarters?
A: Andrzej Ilczuk stated that the company is focusing on optimizing existing products and has hired new personnel to enhance their approach. They are not currently pursuing acquisitions but are open to it if necessary. The company is working on improving product development and monetization strategies.
Q: Can you comment on the marketing expenditure for Wings of Heroes and its impact on user acquisition?
A: Marketing efforts are dynamic and results can vary. The company maintains stable marketing expenditure and is surprised by the relatively low number of downloads compared to the market size. They continue to analyze and adjust their marketing strategies to improve user acquisition.
Q: How are the new employees contributing to the strategy for flagship products, and when can we expect results?
A: The new hires started in February and are currently familiarizing themselves with the company's games. The focus is on understanding and improving product performance. Initial impacts are seen in project works, and the company is optimistic about future improvements in product quality and monetization.
Q: What are the plans for monetization changes in key products like Fishing Clash and Hunting Clash?
A: The company is focusing on improving monetization through segmentation tests and new content. They are cautious about making major changes and are working on understanding product performance better before implementing significant adjustments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
