Ten Square Games profits up 22.8% as restructure takes effect

• Ten Square Games recorded an increase in net profit during Q2 2024 despite falling sales in flagship games
• Wings of Heroes recorded its third consecutive quarter of growth this Q2

Polish mobile studio Ten Square Games saw a substantial increase in net profit during Q2 2024 despite declining game sales.

In fact, net profit reached PLN 22 million ($5.7 million), up by 22.8% quarter-on-quarter with Ten Square’s strategic shift last year - which included approximately 110 layoffs - finally beginning to "yield positive results".

New blood

Following the appointment of Andrzej Ilczuk as the new CEO in April 2023 the company worked to turn around a troubled 2022 where overall revenues declined 23% to $116 million and a difficult beginning to 2023 with two major projects axed and a quarter of all staff members made redundant.

However, by November 2023 the company saw record quarterly growth with Hunting Clash MAU up 82% and their financials in May 2024 saw Q1 profits beat the whole of 2023.

Profit hunt

Alongside rising profit, Ten Square Games recorded quarter-on-quarter and year-on-year growth in EBITDA this Q2, at PLN 27.7 million ($7.2 million). This was up from PLN 23.6 million ($6.1 million) in Q1 and PLN 19.8 million ($5.1 million) back in Q2 2023.

As for adjusted EBITDA, that marginally declined quarter-on-quarter, but did continue to grow year-on-year; Ten Square Games recorded PLN 27.3 million ($7.1 million) in Q2 2024, compared to PLN 27.5 million ($7.1 million) this Q1 and PLN 21.9 million ($5.7 million) last Q2.

Total bookings declined quarter-on-quarter too, down by 3.4% to PLN 96.2 million ($24.9 million).

Rising profits can be attributed in part to no severance payments whatsoever this quarter, versus Q2 2023 when the company spent close to PLN 3.2 million ($827,000) on layoffs.

Sales continued to decline in Ten Square’s flagships Fishing Clash and Hunting Clash, however, though slower than in Q1 2024. Fishing Clash specifically saw a 2.6% decline in bookings quarter-on-quarter, earning PLN 59.6 million ($15.4 million) - over half the company’s total bookings.

Taking a strong stance of its own, Wings of Heroes recorded its third consecutive quarter of growth this Q2, marking one clear winner for the period. The 2022 title "caught the wind" this year and has evidently continued to soar.

Angling for more

Improving upon its existing games is a key priority for Ten Square going forward, meaning a focus on quality, monetisation strategy and live ops. In Wings of Heroes, there are plans to introduce a new game mode and a clan system.

Another priority is to develop new prototypes, so Ten Square Games has joined forces with its subsidiary Rortos to do just that. The wider group currently has three game prototypes going into Q3, of which two have publicly revealed titles: Trophy Hunter and Fishing Champions.

Ten Square Games' turnaround this year has been a dramatic one, with Q1 profits alone beating the whole of 2023.