Ten Square Games’ latest financials once more state that the company will be moving away from additional projects and focusing on their core games.
Their financial release notes that this strategic reorientation relates to the ceasing of development on two projects: Fishing Masters and Undead Clash, which we previously reported on. However, Ten Square Games’ new Q1 2023 financials offer a greater insight into the effect cancelling these games has had. This also resulted in a significant amount of money being written off, amounting to PLN 26.6m ($6.3m), as well as the axing of around 110 employees as part of a subsequent restructuring. However, Ten Square seems confident enough to offer 100% of consolidated net profit for dividends to shareholders, much higher than their usual 75%.
In terms of other financial figures, net bookings were down by a margin, to PLN 123.6m ($29.5m). Revenue stood at PLN 117.4m ($28m) and loss stood at PLN -12.8m ($3m). As noted previously the company states they want to get on the road to profitability and reorient themselves to focus on growing revenue and playerbase for existing titles to effect that.
CEO of Ten Square Games, Adrzej Ilcuk, said, “The global mobile gaming market is consolidating, adding to the already fierce competition in the industry. Which is why, we decided to refocus strategic goals on our most important and prospective titles. After a large internal reorganisation, we are currently in the process of redesigning the processes related to the execution of projects. We want to solidify Fishing Clash and Hunting Clash as leaders in their market segments and prepare Wings of Heroes for further scaling.”
Ten Square Games are not the only company to recently announce they would be halting further projects in order to focus on their core game catalogue. And in the world of mobile gaming, where many companies such as Supercell rely on titles that have been in continuous development for decades, it’s a smart move to take. The recent removal of Fishing Clash from storefronts in China due to the closure of their publisher in the region may have been downplayed at the time by Ten Square, but there’s no denying it cuts them off from a potential source of growth and revenue.
It reflects the varied experience many mobile and mobile-invested studios and publishers have had in recent financials, with most if not all reporting some form of slowdown with investment into long-term growth. While others which profited massively from the halcyon days of the stay-at-home orders during the Covid pandemic are now looking to stay profitable.