This article first appeared on GuruFocus .
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ten Square Games SA ( STU:1HQ ) is focusing on growth by developing new games and expanding operations, with a new restrictive development model to ensure high market expectations.
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The company successfully stabilized proceeds from its core games, Fishing Clash and Hunting Clash, and plans to improve early retention and monetization.
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Real Flight Simulator has shown strong performance, ranking first in its segment, and continues to receive content and feature updates.
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Wings of Heroes recorded over a 50% increase year-over-year for the third consecutive quarter, indicating strong growth potential.
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Trophy Hunter is the fastest-growing title in the company's history, with a clear path towards monetization and plans to scale revenues.
Negative Points
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The first quarter results were negatively impacted by fewer fisheries in Fishing Clash due to a five-week content cycle.
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April's performance was affected by external factors such as better weather leading to decreased player engagement and reduced marketing spend.
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Errors in LiveOps and a weak release in Fishing Clash contributed to poorer results in April.
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The company faces challenges in monetizing Trophy Hunter due to limited in-game purchase options.
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There is uncertainty regarding the break-even point for Trophy Hunter, with expectations that it may not occur until Q3 2026, depending on marketing expenditure.
Q & A Highlights
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Q: Why has the revenue for Trophy Hunter remained around 5 million per month despite increased marketing spend? A: The CEO explained that Trophy Hunter lacks monetizers, meaning there are limited in-game purchases available, which caps revenue growth. The company has been working on finding a monetization path and expects to implement new systems soon to enhance revenue. The focus has been on ensuring the gameplay is engaging before scaling monetization efforts.
Q: What caused the poorer performance of Trophy Hunter in April? A: The CEO attributed the decline to reduced marketing expenditure and external factors like weather, which affects player engagement. The company intentionally limited marketing spend to focus on developing a monetization strategy. They expect to resume growth from June onwards.
Q: How does the company plan to address the decline in MAU for Hunting Clash? A: The CEO stated that they are not overly concerned about the decline. The focus is on retaining loyal players by providing new content and features. They believe that by enhancing the game, they can maintain player engagement over the long term.
Q: What is the reason for the accelerated global launch of Metal Hunter? A: The CTO explained that the scope of Metal Hunter was reduced, allowing for a faster launch. The development team streamlined processes and focused on essential features, enabling an earlier release. The company plans to add more content post-launch based on user feedback and performance metrics.
Q: How does the company view the current gaming market, and what is their strategy moving forward? A: The CEO expressed that while external factors like seasonality can impact performance, the company focuses on making strategic decisions to drive growth. They are committed to launching new games and improving existing ones, aiming for long-term profitability and shareholder value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
