Good afternoon. Hello. Good afternoon. Welcome to Q1 2022 results presentation. Here today with you- Magdalena Jurewicz, Chief Financial Officer. Anna Idzikowska, Chief Growth Officer. Welcome, everyone. Maciej Zużałek, CEO. Wojciech Gattner, Chief Product Strategy. Okay. So we'll start, as usual, with Q1 2022 highlights. The key things that occurred during Q1, the number one is obviously our performance has declined quarter-over-quarter. You know, a lot of impact on that had current market circumstances. There's been quite a few changes that we observed in Q1. End of lockdowns, we saw war in Ukraine, and decisions that we've taken on that in terms of closing Russian and Belarusian markets. We also seen a lower U.S. spend and ability to invest money in marketing. When we look at our core engines, Fishing Clash and Hunting Clash, the performance is below our expectations, despite the fact that actually Hunting Clash had the best quarter ever. You know, both products have roadmaps prepared. We're working on new features. We're trying to bring them back to growth in 2022. The next area of our development investment in the future is building new titles. We have four titles which we're looking to launch in 2022. They are all being progressed to deliver players in these products over the next several months, especially in 2022. The fourth thing where we're very focused in this quarter, last quarter, was our acquired portfolio. We made two investments, Rortos and Gamesture. Both are showing us very good and healthy signs of performance. We think this is, you know, still early stages, but it's proving the concept of TSG being able to acquire businesses, invest in their products, support the teams, and generate additional value. We'll talk more about that. As typically, I will offer a deep dive into the performance of our two core games, Fishing Clash and Fishing Clash China, and Hunting Clash. Let's start with Fishing Clash performance during the first quarter of 2022. The results, bookings-wise, were 20% lower than our Q4 2021 performance. It's related to a couple of reasons. Some of them were mentioned by Maciej already. The first factor is discontinuation of Russian and Belarusian markets in our games due to the war in Ukraine. As we know, as we were already stating, Belarusian and Russian markets contributed to around 6.5% of our revenue, of our bookings in 2021. This is the first reflection of the decrease of the bookings. The second thing is the end of lockdowns. We see that the whole actually gaming segment is declining. Obviously, we believe in this segment in long term, but we see that there is a visible slowdown, especially in the main markets like the United States, which obviously contribute to the biggest part of our bookings. We also see greater marketing dynamics which are also very strictly connected to our marketing activities. There is also a consumer segment and inflation that is visible, so we also think it has a big impact on our business. Regarding lower user acquisition spend and the turbulence on the marketing dynamics, as we were stating, there were a lot of changes connected to the ATT policy change related to iOS, but it also has an impact on Android. We've seen the increase of marketing cost, so obviously it's reflected in our marketing spend but also in the bookings. Another thing related to the user acquisition spend, which is +18% in Q1 2022 versus Q4 2021 because of the December that was showing a big decline in our marketing spend. We also have been spending a solid portion of our marketing spend to Russian and Belarusian markets. That's what we are not doing now since we have discontinued our performance and availability there. We also see that the average MAU has gone down a bit while our average bookings per user are on a very solid level. This is something that we are satisfied with. Fishing Clash China, a few words on this title. As we were saying, we were getting ready to introduce Fishing Clash China to new Android platforms, which are responsible for around 80% of players in Chinese market. Chinese market has been changing significantly during the last months, actually the last year. A very low number of new games being introduced to the market, but also restrictions coming from the Chinese government, the regulator. We've been seeing that, and we were evaluating the title because of that. What we have done recently, and something we wanna announce, is that we entered Huawei platform. It was in the end of April, so we are still calculating, we are still waiting and evaluating the data. This is the entry to the market of more than 500 monthly average users. Another step, which will still be concluded in Q2 2022, is the entry to another 3 stores, which will also reflect around 500 monthly average users. After that, we believe that we can fully evaluate the performance of Fishing Clash in China, because we will deliver the full rollout. We were saying before that, for us, iOS is just a part of the market. Now entering Android platforms, we will be ready to tell you more about the performance. Probably the next conference we will be able to share more info. In general, we have managed more than 4 million downloads in China until the end of April. Fishing Clash is still a very strong contributor when it comes to sports category, both when it comes to downloads and when it comes to bookings. Hunting Clash had, as Maciej said, the best quarter in its history. The bookings were +6% versus the fourth quarter of 2021. As also Maciej said, we see a slowdown. We were really able to deliver a lot of content during the first three months of 2021. What we are focusing on right now is to be able to, in midterm and long term, being able to deliver content, diversified content in the game for more than three months. We see this slowing down with bookings, also with marketing spend in April, and this is what we are focusing on right now to be able to deliver more content and to be able to more efficiently promote the title in longer term. Obviously, the downtrend for April is also connected to the same factors I was mentioning for Fishing Clash. A turbulence on the market, a lower sentiment of players, end of lockdowns, war in Ukraine, lack of user acquisition spend in Russia, Belarus, and also lack of bookings coming from these geos. Basically our current focus now is to test the product to make it as close when it comes to performance and content as Fishing Clash is. Okay, a few words and updates, status update on Rortos. As you may remember, we bought the business in July last year, so we are working with it 10, 11 months now. The whole hypothesis was built on a few pillars. One was bringing Airline Commander under TSG roof, taking over a product, not a very common thing to do in the business, but we wanted to connect it very much to our monetization systems and have it under control. That's been agreed with the team because we felt there's more value to be generated in this product. The second part was, you know, running current existing portfolio, which was done by Rortos team out of Verona, and that portfolio, part of the portfolio did really well. The third pillar was launching a new game, Wings of Heroes, which has happened recently. Moving back to Airline Commander, that's been a process that's taken us about 10 months. If you remember, we really started with the idea of taking over the product. We had to delegate one person, a team leader, to start building the team. It's taken up until Q1 2022 to build a team of around 15 people. In between, in the background, we were integrating the game with all our systems. Technologies were different. It was quite complex process, but we're coming out of it with a deep knowledge on how to manage products which were not built in our ecosystem. That's a very, very important pillar for the future development of TSG, we believe. In Q2, we are working hard on new features. We've tested with Airline Commander marketing at the beginning of the year. We invested in it, and a very clear conclusion from that is we think we can lift up the number of users in that game, but it needs deeper monetization. It needs more feature. That's something we're working on. Those features will be coming through still this quarter and the following quarters. Looking at Airline Commander, the very big kind of hypothesis for us was, you know, can we take this product towards our flagships, Fishing Clash and Hunting Clash? That's something we're trying to do. How far we can get, we'll see. I think the most exciting part is coming over the next few months to learn that. The second pillar, which is actually, you know, the way we look at it from investment perspective, I can say it now, Wings of Heroes was a little bit of an upside from TSG perspective, a new product in earlier stages of development, with unproven hypothesis. Market is changing. We've seen the launch of the product recently, and it has excellent retentions, early retentions over 30%. That's something that is at top of the range of what we're seeing at TSG, and it's very encouraging early performance. That game will get a lot of focus from our team in Verona, but also with the help of TSG team. That's Rortos. I think it's in line with our expectations as we set them at the beginning of that transaction. 12 months in, I think, you know, that's good news for us. We have obviously much bigger aspiration for it and the cooperation is going very well with our colleagues in Italy. We just need to spend more time working on these products and, you know, hopefully that's gonna bring us to great results. The second investment, a different type of investment, a company that we've known for a long time, Gamesture, a studio located in Kraków with around 70 people strong. That's been, you know, a long time discussion about the possibility to do something together. We ended up buying a minority share in the company. If you look at the performance on the right side, around November, we've taken a decision to start due diligence and getting and looking at this transaction in a serious way. Everyone was ready for it. We hope that, you know, Gamesture will actually start getting traction with some of the products. As you can see, the company has grown in five months 2.5x, and that's thanks to the performance of the core game, but also Questland, but also, you know, a new launch of Slash & Roll. A completely new type of the game for the studio that's having very good KPIs also. You know, the early retentions are very high. That game is a game that can be replicated in a different thematics. There is a second game from that family being launched over the last few days, and the early KPIs also very strong. Very strong retentions. We're seeing first monetization signs. The game is called The Gang, and it's a completely different thematic. That's something that Gamesture will continue to explore, these two games, and maybe possibilities to roll them into other thematics. The last thing, there is another game that is being produced by Gamesture, and it will come to market test pretty soon. We think there might be something interesting as well. If you look at Gamesture, I think, you know, different transaction right around the corner. Very good fit. We're helping our colleagues from Gamesture to deepen their know-how, but also learning from each other. That's a good experience. I think overall, 12 months since we made the first investment, we can see the early signs of the M&A strategy being a very exciting part of the business for TSG that hopefully we can leverage and it will take us to further diversification of our portfolio. Okay, to summarize our current production pipeline, we wanted to say that Wings of Heroes was just recently soft launched, as Maciej said. We are super happy with the initial KPIs, with the vitals, with the retention, engagement and monetization metrics. Just for the note, the game is still super early, in a super early phase of development in terms of, you know, how many systems are there, how many features are there. So that's why we are very optimistic about those numbers. They look very good. Regarding Football Elite, we are in the testing phase right now. We started the game in Mexico, and we added the United States to the countries that the game is targeted. We are working on the improvement of the KPIs, and we are preparing the game for the next iteration. We can see that, you know, the amount of work that we did over the last months already paid off. The KPIs are better, but we still have to grind a lot, and we still have to improve the product. Undead Clash, our new Clash, is planned to be soft launched by the end of this year. We are working on features. We have a very robust roadmap, so everything is going according to the plan, and we are adding those features as. We'll be adding those features in the upcoming months, and we'll be also seeing, you know, the dynamics of the improvements. We are planning to be ready by the end of this year. Fishing Master, we've finished the prototype. We are expecting the soft launch to be on the verge of the end of this year and the beginning of the next year. It's another fishing title to our portfolio. It has a very nice fishing thematic with a lot of, you know, adventure behind it. The Warsaw team is right now focusing on delivering that title. Magical District, as we noticed you a few weeks ago, we decided to freeze the development at this very moment to put that on hold. We strongly believe in Fishing Master, so that's why we wanted to put more focus on that. On the other side, the game KPIs need still to be much more improved than we initially expected. On the other side, we also have other bets that are coming from Football Elite and from the Gamesture portfolio that are having a lot of similarities between the core components of the Magical District. That's why we right now have few bets on that, on that specific topic, which are covered by already more, let's say, mature and developed titles with much better and more promising initial KPIs. That's why we want to focus on those titles. As Maciej said, our investment in Gamesture and Gamesture will be soft launching and launching the few titles in upcoming months with very nice Slash & Roll and The Gang KPIs and also Hero Legacy that should be coming a little bit later this year. This is the slide showing how TSG developed in terms of team sizes. Obviously, you know, as we look at our performance, we react to that. The plans we had to further develop the company will slow down the recruitment, and we are being mindful of how we develop the business, looking at the cost base of the company. Okay, financial results as a summary. First, bookings. As Maciej said, we have a decrease in 15% quarter-over-quarter. In terms of bookings breakdown by geography, we are still strong on our Western markets, especially North America and Europe. The split of the revenue by games of the bookings, of course, the biggest is Fishing Clash, but Hunting Clash and Trophy Hunter are also increasing in the share of our revenues. Operating expenses, we would like to exclude one-offs, of course, our stock option program and other M&A costs. When we analyze the cost, we see that of course there is an increase over the quarter-over-quarter. It's mainly into bigger teams, bigger infrastructure and the cost of our subsidiaries. Last year, at the same time, we didn't have Rortos, Berlin studio and Bucharest studio so big as it is now. In terms of selling costs, of course, provision and marketing. As Anna said, marketing was lower due to some reasons, and this also has an impact on our numbers. EBITDA, the quarter is not so good as we would like to be. EBITDA achieved PLN 41 million, and net profit PLN 25.6 million. Of course, for the same reasons as we mentioned, such as war, marketing spending and consumer sentiment. Cash flow and balance sheet this quarter was pretty stable, so we generate stable cash flow from operations. In terms of balance sheet, we added few million dollars to the balance sheet, mostly in cash and other current assets. One more thing, maybe yeah, to also let's say in our operation, of course, it was a Gamesture acquisition, mainly. Not mainly, but fully financed by our cash. The second one was our buyback. Both of these activities were financed by cash. That's why our cash position is slightly lower than it could be without this one. Okay. Profitability and cash flow. Of course, profitability decreased quarter-over-quarter, but we are still happy with the cash position, and we generate high cash flows, KPIs. Yeah. Okay. Just to sum up this block, you know, where our current focus is, we definitely are working very hard on the portfolio performance, and we're trying to pull the levers that are in our control. We're trying to work on that and trying to work with the products, bringing new solutions to the games, but also working on the user acquisition side, working and developing our systems. The second area, very important for us, we started development of a few new games some time ago. Very important we bring those games to the market. You can see some of them coming early on. What we would like to do is to bring all of them still in 2020 to have the players play them, so we can look at KPIs and think how to develop them in the future. The last bit, we see the value of M&A. We'll focus on integration, supporting acquired portfolio, looking to grow the titles that those companies have. On that note, thank you, with moving to questions. Okay. Thank you. We'll start with the questions. First question would be, does the management or any of the shareholders plan to change the price range for the buyback program? I mean, buyback is one of the strategies that is possible to apply in the current circumstances. Our fundamental belief when we think about TSG is about, you know, making the company good progress in terms of development of the games, and that's the core to what we do. We've launched a buyback program. We're reviewing that position. There's a lot of aspects, and there's tactical and strategic aspects to be taken into account, and we obviously are thinking about buyback and you know, how it's positioned and what prices. That's an option on the table still. Okay. Thank you. We have a couple of questions regarding the management incentive plan. The questions concern the parameters, the EBITDA parameter for the management incentive plan, and the reason for it. There's a question whether this builds transparency towards the company and the management. There's also a question whether the company could consider linking the management incentive plan with the market cap instead of something like EBITDA. Okay. We're going into things that were discussed with supervisory board and decided by supervisory board. If you look at the company and current performance, you can't isolate it from market circumstances. We had an excellent period of time with COVID, which we took a great advantage of. We're in particular life cycle of the business. A very important aspect of it is, please don't forget, we're operating in a highly competitive global environment, especially post-pandemic. Everything that happened before, so two, three years ago, when people work in studios physically, that was the core to the gaming industry. That is changing very, very much. A lot of people working remotely. We're employing about 150 people in a remote mode. We are competing on a global scale, and that's something t o bear in mind when you think of our companies and any other gaming business in the world. Thank you. Next question would be regarding general and administrative costs, whether you can comment on the increase in these general G&A, going from PLN 24 million in first quarter of 2022 compared to PLN 11.8 million in first quarter of 2021. Could you please show me the slide from backup with this cost? It would be easier to answer the question. From backup. Later. Oh, that was it. Okay, as I mentioned, we have some one-offs, which also are reflected in the total general and administrative costs. When we exclude the cost of the stock option program and other one-offs which are M&A and Croatia trip. We see, I would say, the normal level of the cost. As I also said, of course, they are increasing, but their increase is not such a big as it was in this question. The main reason of the increase is, of course, our fixed, I would say, salary base. We have bigger teams, and we need to pay them despite of the fact of the revenue. They are not like that we, if we earn less, that we pay less. That's the answer of the questions. Thank you. Next question regarding IR. When can we expect the next IR manager to join? That's it. Oh. IR. Alex, we are at the final stage of recruitment process, so as soon as the person will be available. Okay. Thank you. A couple of product questions. So first one would be, what are the results of Fishing Clash in China since the beginning of the year? Why is it still insignificant? Why is it marginal still? Okay. I will take this one as always. Basically, I cannot share the direct numbers for Fishing Clash China. It's under nondisclosure agreement with our partner, with NetEase. The formula of the cooperation of Ten Square Games in Chinese market is completely different than what we do in any other market. We have a publisher. There are some cuts. There are different channel fees that differ a lot to those that are offered by, let's say global providers like App Store and Google Play. We have a very fragmented Android market in China. Obviously here the numbers are also different. They are much higher. Long story short, I will not share the numbers yet regarding Fishing Clash in China. When we compare these results in general to our biggest markets, they are very solid and very good. We need to remember that China is just one market. I know it's huge. It's the biggest gaming market now. There were also, what I was already mentioning, a lot of restrictions, a lot of limitations to this market, especially for Western, foreign, developers, bringing games to the market. This market is also very protective, so that means that we cannot launch the game ourselves. We need to have a publisher. That means that we also need to share our bookings, our revenue with our partners. There is not only one. There is a publisher, but there are also the platforms. Our partner is responsible for the marketing spend. That's why what lands, let's say, in Ten Square Games' pockets at the end of the day is obviously only a part of what we are generating in the Chinese market. Another part of the answer to this question is why it's still marginal. Yeah, this is the part of the reason. The second part, the second reason is that we just started entering Android platforms, and you know that building the cohorts, bringing the revenue comes with time. We also need to focus on Asian markets more. We need to understand players better. We've been available on iOS only. Now we are starting the road to Android. I think the next time we see each other here, we will be probably able to evaluate, as Alex said, the performance of Fishing Clash China after the full rollout. I would say cuts, platforms, the formula of the cooperation, and the second thing is lack of Fishing Clash on Android markets in China, which contributes to around 80% of traffic and around 70%, 65% of the revenue coming from gaming. Thank you. That will be all about that. Thank you. Following Fishing Clash China, we have a question regarding Fishing Clash Global. Would you say that Fishing Clash is in a downtrend of decline? The new content does not seem to be contributing towards additional revenue. You start. Yes. Basically, yes, if you look at the top-line numbers, of course, we could see like there was a decline trend in the recent months. However, as we said in the previous conferences, we felt like we are bottoming out, especially in December, where we had one of the, you know, best months of 2021. 2022 showed us a new reality with cutting off the Russian and Ukrainian players and a lot of, you know, external disturbance, I would say, that definitely impacted some of the KPIs. We are delivering the new content all the time. We are delivering new features this year, and there are a few, you know, very strong features, very strong bets that we believe will reverse that trend. If we look at the performance of new cohorts or if we look at, you know, other vitals We don't see anything that is, let's say, very disturbing. Yes. Like, all the numbers are good, and the retention rates are actually increasing. We could see a little bit higher churn after the war started, which is like kind of an external circumstance. We are, of course, monitoring it heavily and every day. We are investing in that game a lot, you know. We still believe we can improve that title by more. We still believe that this is an evergreen title that will be stable or will be back in the growth in the upcoming quarters. I would like to add something from a marketing perspective. We've seen a decline in our marketing spend over the last few months. It's connected to the turmoil on the market. We see a lot of changes. It's like a multilayered cake. I know I like this expression, but it really fits. There are so many changes, and we try to adapt. We try to be as effective as possible. But obviously the profitability of our activities with increased user acquisition costs is decreasing. That's why our role here is to make sure that what we do is profitable. That's why we've seen lower volumes being delivered to the title, to the titles, because it's a market situation that is pushing us a lot here. But we do believe in the segment. We said that we've seen the decline in the segment in general. There are many players who are decreasing their marketing spend. They are testing new platforms. They are testing new channels. They are trying to approach the marketing topic from a different angle. That's what we are trying to do. It's not a short-term game we play here. Same as Fishing Clash is not a title that has that was created a few months ago. It's a title, it's a solid title that has months of, let's say, experience, content creation history, and also a long story of marketing expenses. We will be increasing them. We will be focusing on them. That's our main focus actually, to be able to increase the volumes but in a profitable manner. We do believe in the title, and we believe it's a long-term play. We've seen the decrease of the volumes we've been delivering to the title, so obviously it has a delayed effect on our bookings, on our revenues. We need to take it into account. I know you are asking about the future here. We believe that we will be continuing focusing on both product marketing and the cooperation between the two, and we will do our best to increase these numbers in future. Thank you. Next question. We'll bundle a couple of questions together. The first one would be more financial. With the variable management incentive scheme, in April, the board of directors approved an ESOP with an EBITDA target of PLN 172 million-PLN 251 million. How does the management see delivering this result in 2022, the top end of this result? Does the management plan to implement an ESOP for other employees? Yeah. I think the last part of the question I answered previously. In terms of the range, we normally do not tend to comment on the future. Even as you can see, you know, with the current performance or the historic performance in March 2020, there can be a volatility in the gaming business. We experienced that twice on a significant scale. I think the range that you see is the kind of, you know, broad view on potential outcomes. Should be good in this current circumstances. The way we operate and the way we think about the company and how we manage the business, and I think we've said it on every quarter, is we manage it for a long-term success and midterm effects as well. We are going through a new wave of development of new products. We're trying to improve our products. We're bringing more people with different know-how into the company. That's the investment at the back of 2020 success that we decided to make to see if we can take the company in a very sustainable position over long term. We have a big market disruption at the moment coming out of the lockdowns. There was a war component which added to the performance of current portfolio. It's frustrating for you. It's also frustrating for us. We're trying to do our best on this side of the table and on this side of the screen to deliver the best performance. The outcome of it is, it's, you know, as we've seen in Q1, can be quite volatile. The only things we can control, which is working with the games, looking at our users, looking at user acquisition, all of these things, we're doing the best we can at the moment. Thank you. Now a couple of product questions. First one regarding Magical District and its development costs. Should we expect any write-offs now that development is postponed? The second question regarding the cost of production. Undead Clash development costs are already above PLN 10 million. Should we expect that each new game would cost more than PLN 10 million to develop? I think on Magical District, we decided to put it on hold to have the team focused on developing Fishing Master, which adds to our, you know, fishing-themed games. We think it's important that we add another game in the portfolio. That also manages to, just to explain what happened inside, that game was partially outsourced, and we decided to produce it completely in-house with our own team. That means that team is seriously busy with Fishing Master at the moment. It's gonna be busy for the next nine months. Then we'll take a decision on Magical District. The way the game was developed, it gives an opportunity to, you know, on the back of the engine that was created, to build different types of games. It gives us a chance to reassess this and think whether we wanna follow with Magical District or maybe make a pivot, or maybe we'll decide to discontinue. That depends also what happens with delivery on Fishing Master and, you know, how strong the product's gonna be. I think, you know, that's on hold and we didn't want to decide now. We have an engine built. On Undead Clash, yes, it's an expensive game to produce. The cost of game production increased already. I think that's a worldwide trend. You can if you follow other companies. Not necessarily every game will be PLN 10 million plus. That really depends on the type of the game. The one thing which we observe in the market is general demand for high quality of games. That means, you know, producing, you know, better games, better-looking games, and that just takes time, money, and effort to produce them. Undead Clash is one of these games which we believe, looking at all the, at the competitive landscape, should look very good, and it takes time and money to produce this type of a game. It's built on the at the back of our Clash meta, and we believe it will have a good potential to pay off, and we'll make good money on it like we did on Fishing Clash. Thank you. Next question. It's already 24th of May. Can you comment already on Fishing Clash and Hunting Clash performance? Is there any pickup month-on-month or is it flat month-on-month? Basically, as you probably can see on all the third-party data like App Annie and Sensor Tower, and that's something that we already published. April was on par with March, if I remember correctly. May is a little bit below to what was in April, but we can see some stability coming in. Okay, thank you. As game monetization does not develop as you expect, and gamers spend less, do you plan any cost-cutting initiatives to support the profitability? We are looking at our cost base and we're looking at our business as we go, and we are reacting to what's happening in the market. You know, I've commented on that before. We decided to slow down significantly the recruitment program, watching carefully on the core initiatives in the business. Trying not to lose the best opportunities we believe we have in the current state. Then we're observing and working with the performance of our games. Okay, question, follow-up question probably to this. With regards to headcount, what are your expectations at the end of 2022? Previously there was guidance for 600 people. Yeah. I think, you know, if I haven't said it loud enough, I think we will not look, with the current circumstances, to build a team to 600 people. We have reviewed the areas. We know where we need to invest still, which parts of the business. You know, for now, that plan is on hold. Thank you. Okay. What's your strategy on user acquisition for the coming weeks and months? Should we expect marketing costs to remain lower? It's very difficult to discuss future. I always try to back up my opinions with data, obviously. There is also some experience coming here, and we had that formula of smart growing. That means we go both ways. When we see there is space to spend more, we do that. But also when we see we should slow down, we do that as well. Another thing is the cooperation with the product. We see the product is delivering new content. We see there is an increase in some KPIs. There are so many of them that we follow. Again, we can increase our marketing spend then. What will be our strategy on user acquisition? To adapt to the circumstances, as always. To be profitable, to deliver volumes that can bring profits in future, in longer term, since we see that the time of recouping our campaigns is slightly longer than it was obviously some time ago, which is connected to the increase of user acquisition cost. Definitely what we will be doing further, because we have already started, it's not that we will invent something completely new and we will change the market, but we will continue our smart approach. We will be testing new marketing channels. Actually, we have started doing that. I'm not talking about influencer marketing only, which by the way, we see good results coming from for different games. We need to remember that our games in our portfolio, they are different. They differ from each other. Obviously the results coming from different channels will be better or worse adjusted to them. This is definitely something we will be doing, and we will hopefully be able to shift more budgets into these areas. We will be testing TV again. We did it successfully in the past, so definitely we wanna do that for a couple of our titles. We have already started testing marketing channels that we worked successfully with last time during this COVID period when we were increasing our marketing spend and we were trying to spend everywhere we could, so we are testing them again. Obviously, the results will be slightly delayed. When you test something, not necessarily the first results are in line with our expectations. This is something we are doing as well. We came back to almost all channels we've known from the past. I need to also say here that the changes to the markets were affecting the marketing channels as well. There was a shift. Some of the partners we cooperated with are stronger, some are weaker, some are better adapted to the new situation. Speaking of iOS, in future on Android as well. This is something we are doing here. Some of them got ready finally to be able to work with them more, let's say, directly. We are also onboarding new channels. We need to remember that some platforms, they are declining when it comes to daily active users, some other are growing. We are also trying to follow the trends to work with several networks which are more, let's say, popular among players and users in general now. This is definitely the strategy to go wider. We don't forget about the cooperation with the platforms. User acquisition is always referred by people to paid user acquisition, but this is not true. There is also a big scope of organic traffic we are fighting for. Many games of the day in App Store, so many featurings, collections we are in. We need to make sure that our games they have good vitals. They good. They don't have bugs. They are fixed. The players they can play them easily because then we become parts of the collection. This is what we are doing heavily. We are investing a lot in this content, and I think we are pretty much covered here. This is how I would like to answer this question. We will be trying hard to be able to be always, let's say, on top, so we don't forget about some channels and some possibilities. Thank you. Next question. How much will Fishing Master differ from Fishing Clash on the gameplay level? Okay. On the gameplay level, they're like two completely different games. I would say targeting very different, let's say, audience, at least for the core, for gameplay. Of course, the game will still have a lot of core mechanics and that are present in Fishing Clash. However, as I said, gameplay and the feeling of the game will be much different to Fishing Clash. Thank you. Following question. Does the call option to buy out the Gamesture majority stake include the financial performance related payment? Yes. Thank you. Football Elite, what are the company's first conclusions after a month of technical launch? Our first conclusions are that we improved the product a lot in the last year. Second thing is that there is still a lot of work in front of us waiting for us, and that we'll have to focus a lot on improving that product. We also see some synergies with, for example, Slash & Roll, where there are like, not similar mechanics, but there are some similar dynamics in those games. That's very good to have a nice benchmark to compare each other and to even faster build the know-how. We are learning the audience. We are looking at the data. We are already working on the A/B test. We are working on the development of that title. Yes, we are also running some marketing campaigns. It's business as usual after the technical launch of the title where we try to improve the product as much as possible and see the dynamics of the change. From marketing perspective, we have a few titles we are launching now, we are testing now, so it's good because we can compare the metrics. But it also means that we are more demanding now, seeing some metrics here and there. This is definitely something we are doing, and it is connected to Football Elite as well. We wanna improve, and this is what we are doing now. Thank you. Two questions. I will bundle them together as well. For Fishing Clash China, which we've already discussed. The question is, can we expect first revenues from the channel, from Android channel, already in the second quarter of 2022? Yes. The second one would be, what's your expectation for quarterly revenue once the game is available on all platforms? I would like to take a look at the first results coming from these platforms, and then I will be ready to discuss more. Sorry for that. Thank you. Wings of Heroes, has the company already started acquiring players for this title? Yes. We are happy with the first results. We are comparing to the other titles we have in portfolio. This is the very early beginning, but the first params are very satisfying. We are exploring this new niche, I would say. We also have Airline Commander we are running our marketing activities for. This is very interesting to compare and to see how it works. Especially all of these titles, they are being tested in the same geos. Yes. Thank you. There's another question for Magical District, which probably is linked to, similar to what was already asked, but I'll read it anyway. Can we expect that any of the newly built teams by the company may take over Magical District? I don't know what is meant by newly built teams. I guess the wider TSG teams, if we would pick up the Magical District. No, that's not the idea. That's the product that belongs to the team that created it. We don't have such plans. Thank you. We already asked a question as well about Fishing Clash and Hunting Clash and their performance in May, but there's also a question for Rortos performance in May. If you have any comments regarding Rortos performance? Yes, we are very happy. Yes. Basically, you know, I think the best news is the launch of Wings of Heroes and basically very good key initial KPIs from product standpoint and from marketing standpoint. For Airline Commander, we continue our marketing activities. When we continue marketing activities, then it means we have a reason behind that. Maybe also for it to comment in terms of how we look at Rortos. As I said, when I covered Rortos development, we finished the team setup, all the connection with all the systems. We've learned how the game should be operated, and we started producing the features that should improve the performance of the game. The sequence of events is we need to bring these features, test them first in the market, make sure they're working, and there are, you know, the things that the players would expect and engage with. Then on the back of that, we will build higher revenue base and also be able to invest more in marketing. That's going to be a process, iterative process that will develop over the next months. We are working on these features. They're being produced. Thank you. Next question. Do you assume the implementation of the play-to-earn model in games in your pipeline? Basically, you are monitoring what the players in the market, let's say, requires. On one side, of course, it's something that we consider, and that's something that we have on our agenda. We won't push it if it's not necessary and it's not beneficial for the players. I can assure you that our game the games that we do, the game types that we do, the game model that we have present in those titles, it's very, let's say, it can easily welcome that kind of that kind of, let's say, the feature or that kind of the model. The games are, let's say, ready to accommodate play-to-earn. Of course, the other question is, what do we mean by play to earn? There was a lot of buzzwords about blockchain and NFTs, and this is one of the solutions. But there are many more that we can consider implementing. Thank you. There's a question about Warsaw Studio. How many employees are employed in the Warsaw Studio? It's about 30 people. Thank you. Question regarding Gamesture. You booked a half a million PLN loss on Gamesture. Is it a full quarter result or just March? Only March. Since the day of the acquisition. Okay. Question regarding Hunting Clash. Hunting Clash has slowed down. Previously you were saying that you have big hopes connected with this title. Would you say that Hunting Clash is not progressing as you would expect? Basically the data that we saw in last month, yes, it wasn't as we expected. As we said before, there is a lot of external circumstances that definitely impacted the performance of the title. To answer, I think the future is bright for Hunting Clash. I still believe, you know, this product is not fully as comparable to Fishing Clash, because of the number of features that we want to implement to basically match those titles side by side. The second thing is that there was a little bit less volume of the players in the last few months, but it's nothing that is worrying us in the long term because we know how the cohorts behave over the long term, we know how the cohorts will build up and the numbers will follow. Okay. Next question is regarding forward-looking statements, I think. The question is, how will you explain the results in second quarter of 2022, and what results do you expect in the second quarter of 2022? Yeah, I think we're not commenting on quarterly results. I think, you know, from what we were describing now, you can feel the sentiment and that, you know, you have a lot of insights into current trading and we're doing things to improve the performance. The only thing we can promise is that we are working on, you know, the best we can on the things that are in our control. Okay. Thank you. Now regarding FC China, you don't give exact data, so what are the expected results? I think we had this question. Also in our reports, we are showing Fishing Clash data. It was shown for the first quarter of 2021. It's just a part like exclusion from Fishing Clash data. For this part, it was 1.3 million, if I'm correct. For the second quarter, we will have to wait until the quarter is ended, especially as I said, like last days of April, we entered new platforms. We just started the Android journey there. What I was saying before is that I cannot go into very deep discussions on the general performance of the game in China because we are seeing just a part of it in our revenue. This is what I was referring to while I was answering the question before. Okay. Thank you. Is there a risk that if KPIs are not met for the incentive plans, would the KPIs be changed? There's no such discussion. There's no such plans. Thank you. The company has PLN 150 million on its bank accounts. How does the company plan to invest or use or utilize this amount given the current inflation situation? Okay. In two days, we're gonna have a general shareholders meeting, and if the shareholders approve the resolution about dividend payments, we're about to pay PLN 72 million as a dividend in June. Yeah, our cash level is significantly lower after this event, and we need some cash to fund the business day-to-day. Of course, we look at the percentage of the inflation and we will. Thank you. Would TSG become a target for an acquisition in the near future? Does management receive such offers? I can't comment on this. I mean, there's nothing to comment on in these questions that I could do other than, as you will remember from a previous process, we have a certain strategic position as a business. We dominate the two niches we operate in. We're trying to get out of it, and that in essence is attractive position in any market. Yes, we are attractive company, but there's nothing to comment on acquisitions or potential takeover of TSG. We're very focused on the business performance. That's the most important thing. Thank you. The current share price is approximately 140 PLN per share. What's the management's view on a fair share price for the company shares? Obviously, I can't comment on this. Yes. Yeah. Thank you. In management's opinion, when should we expect the company to return to a growth path? That's a very good question about the future. I think if you read it, there was a question about our expectations that there's another question which talks about our expectation to stabilize Fishing Clash and then build from that point. That was so far it even six, eight weeks ago. There's been a sudden disruption in the market. We fundamentally believe that these products have a potential to grow. We're working on it. We're building new features, but losing 6.5% of players in Fishing Clash doesn't help. There's a network effect, people spending less time playing games at the moment. We have headwinds at the moment, which are market impacts. We talked about it. As soon as this normalizes, because we don't see any reasons to believe that, you know, the mid- to long-term perspective of the free-to-play mobile market is going to change, that this is a permanent change where people will disengage from playing. We don't believe in that. We think there will be more people playing mobile games in the future with younger generations coming up. The long-term trend is good, and we have our role to play in this market. Yeah. I think we also have the other titles in our portfolio. We are focusing a lot right now. We've been showing some early KPIs. We've been commenting widely on our new production. I think this is also something to take a look at because the question is about the whole group, right? This is the whole group, so we are focusing on that a lot as well. Thank you. We're running out of time. I'll read one or two more questions. What's Ten Square Games, as a company, do you have another studio that you view as an example, someone that you could follow? Another gaming company? Yes. We're looking at our peers in larger companies, and we're following quite a few. There are several companies. I think, you know, all these companies have some excellent competencies. I don't wanna name them, but we looking at several different companies. There isn't a perfect match, but these companies we highly value for how they work with the product, these companies that we extremely respect in the way of how they thought about their own diversifications. Diversification has started much earlier, the platforms they built and how they continue to build that. There's, you know, a lot of aspects, but the one thing, the common conclusion for us as a business is nobody has a holy grail yet. The industry's in the early stages. People are looking for own way, and we're one of these companies which are trying to find the right way for long-term sustainability. That's what we're working. We inspired by quite a few companies. There's great gaming businesses out there. Thank you. How does the situation look in the Warsaw and Berlin studio? What are the plans for these locations? I think we've commented on Warsaw. Warsaw is carrying on with Fishing Master, Magical District on hold, just in case someone didn't take that. In terms of Berlin, with the current setup, we are not planning to develop any new games in the near future in Berlin. Having said that, Berlin is an important location. It's a big gaming market. We have team working there with all our across our business. We'll have the footprint in Berlin, but no immediate plan to launch a game or produce a game. Okay. Thank you. I believe that we ran out of time. We can as well thank you, ladies and gentlemen, for all the questions and your participation in the event. We invite you to send any questions that you still have to our email address at ir@tensquaregames.com, and we'll respond to those as soon as possible. Thank you. Okay. Thank you very much. Thank you. Thank you very much.