Good afternoon, ladies and gentlemen. Welcome to a conference summarizing financial results for the Third Quarter of 2025 at Ten Square Games. My name is Andrzej Ilczuk. I'm CEO of the group. I'm joined by Magdalena Jurewicz, CFO; Janusz Dziemitowicz, CTO; and Nina Grabos, responsible for investor relations. Good afternoon. A warm welcome to you once again. Now let's move to the heart of the issue we are going to discuss today. In the Third Quarter, we have seen consistent fulfillment of our strategic plan. The basis of the plan is a portfolio transformation consisting of a few elements. We are talking about new games like Trophy Hunter. We've had a very successful launch of this game. We're surprised with how good this launch was, and it provides us with a lot of backwind.
There is also Wings of Heroes with a great amount of bookings, with great result in marketing expenditure. We are scaling our next title. Coming on to Fishing Clash and Hunting Clash, they are at the heart of our portfolio transformation, but we are going to talk about that a bit later. There is also going to be a prototype. We are not resting on our laurels, and we are working on the base developed by Trophy Hunter. Moving on to Fishing and Hunting Clash, I might repeat myself at times, but I would like to say that we have two very good games. These titles allow our players to go really deep for many years. There are players who started playing our games at the very beginning of their existence, and they are still with us.
These games perform very well, and they've been on the market for a long time. They demonstrate that we are capable of producing good games. In this presentation, I would like to talk about challenges facing our products. When it comes to Fishing Clash and Hunting Clash, there are two products which are at the heart of our development. These titles consist of multiple systems. We've never touched these systems. We never tried to improve them. Looking at the situation, looking at segmentation, we see that there is a lot of room for improvement and maneuverability. We've seen it on the example of Central Hub in Hunting Clash. We can add a dozen, even a few dozen % to the effectiveness of this game. We've seen it in the launch of Hunting Clash. We had really good results after a year, although we concentrated much less on marketing.
The improvement of the product, the improvement of the systems one by one is greatly important. You have already witnessed that both marketing and revenue in Hunting Clash is going to improve. Moving on to Wings of Heroes, as I've already said, this game has great KPIs. It has seen record-breaking marketing expenditure and record-breaking revenue. These are very solid results. As promised, we begin scaling Wings of Heroes. What challenges is this product facing? It's a totally different product than Hunting or Fishing Clash. The beginning of the game looks really well. The center of the game looks great. What we miss is a bit at the end. We need to provide more opportunities for immersion in the game. We need to provide them with more systems so that they get hooked on the game for much longer.
All that is intended to make our players spend more time in the game, and this is going to be the objective of the team for the next months and years to come. As of now, we have seen very good performance of Wings of Heroes, something we are very happy with. Moving on to Trophy Hunter. We've had a great launch. We are very positive about this game. We are taken aback by how well this game was received by its KPIs, both marketing and product, how profitable this game is after the launch. It all looks really well. The scale of return of the game is really good. We've gathered enough data to demonstrate the areas in which the game performs well and where we need to improve it.
As we analyze the behavior of the game and our competitors, we can say that we've managed to beat one of the best hunting games in the market, one of our major competitors, a company specializing in this segment. After a few months now, we have seen a significantly higher revenue in this game compared to others. We've had much better KPIs. In other words, this game is performing very well. It started very well. Its marketing looks healthy, and we know what to do to make this game even better in the future. The data we have collected so far allow us to better understand what we need to improve. We have gathered a lot of feedback from the players, providing basis for future work. As of now, we are concentrating on content, and we are adding content to the game gradually.
We can see that every new location increases the revenue of the game. We have added new features. In the past three months, we've launched two new features which have significantly increased and improved the KPIs of the game, which is also a very positive forecast for the future. We know that in the First Quarter, we're going to concentrate on successively and gradually improving the product. With passing time, we know we are able to spend more on marketing. It's a very good forecast. The Golden Cohorts provide a solid foundation for future work. We can add new arenas, new features, and improve the beginning of the game to make sure that this title has a bright future ahead of it. Looking at new games added to our portfolio, we are very happy with the performance of Real Combat Simulator. Again, it's a very early stage of the game.
We can't help it with marketing. When it comes to challenges facing Real Combat Simulator, we can't help it with marketing. This means that we need to have a great product. We need to do whatever we can in order to make sure that this product is indexed in Google and Play Stores in order to make sure that what happened in Real Flight Simulator and Real Combat Simulator follows the same path. Over the next month, we assume that in the first half of 2026, so far we've had very good feedback from our players. Moving on, we are a company. We are people who are very pragmatic. Whenever we see that something is working, we try to move on and invest in that. Here you can see an example of a new prototype. It was created very fast, and a small team is working on it.
Just like we said, we take a risk when creating new games, and we try to be very sensitive about it. We have a very experienced and very motivated team. Maybe tomorrow, maybe next week, this game is going to appear in stores. Following the development of Trophy Hunter, it was really important for us that at the beginning we launch a prototype, and we wanted to see whether with one location players can immerse in the game and devote many, many hours playing the game. This was the case with Trophy Hunter. If so, we add a new location. We test whether retention is better. If so, then again, we test conversion and we see what it looks like, whether it's efficient. If everything is all right, we observe long-term monetization. If everything works fine, we start scaling the product.
In this case, it should go faster compared to Trophy Hunter, but we never know what life is going to be like. To sum up, Trophy Hunter is a very big success for us. It showed us that creating new games is the right path to follow, and combining Trophy Hunter's gameplay with our experience shows us that it's a very good direction of development for the game. Now, Janusz, TSG Store.
Okay, the results of the performance of the store. 20% of bookings, this is the share of our store. This is a platform that is a direct platform for our players, and it allows us to decrease commissions that we pay to payment operators, Apple and Google normally. There are also other operators that have better propositions. We have 20%, 31% with Fishing Clash, Hunting Clash about 18%. This is the share of bookings in the store. Let me remind you that we've observed increases in Trophy Hunter and Wings of Heroes, and this translates into a decrease in the % share of the store because these titles are not available through the store. What is important, several weeks ago, on the 29th of October, the Federal Court in the U.S. ordered Google to open the Android platform for alternative methods of payment. We used that on the 31st of October. We started informing our players that there's a possibility of buying things in our store directly through the application on the platform. That's it from me.
Okay, let's move on to the financial results. Let's start from a multi-Quarter perspective. As far as EBITDA goes and marketing expenses go, I know that our marketing was stable, but the level Quarter to Quarter was similar. Marketing expenses in one Quarter translate into bookings in further Quarters to come. Whenever these bookings are stable, also EBITDA is stable. EBITDA, adjusted EBITDA, is at the similar level. In 2025, the situation is slightly different because marketing expenses were significantly decreased. I'm talking about Fishing Clash and Hunting Clash. Together with this decrease in short term, EBITDA is increasing because we are decreasing our expenses, and bookings are going to be lower in the Quarters to come. Q1, Q2, EBITDA is high because we had marketing expenses. This Quarter, we invested a lot into marketing expenses, PLN 6 million Trophy Hunter. We increased expenses for Wings of Heroes.
We spend a lot now, and we hope to earn more in the Quarters to come. EBITDA is lower, and we know that it is lower. It was our conscious decision because we wanted to invest in marketing. It is an investment. It is going to bring us an increase in bookings in the Quarters to come. This is a summary of our Quarters bookings, PLN 85 million, higher compared to the previous Quarter, thanks to increases in Trophy Hunter, Wings of Heroes, Fishing Clash, and Hunting Clash. These titles are not that responsible for this increase. Again, very high marketing expenses in this year. This is PLN 20 million. In the previous Quarter, it was not even PLN 13 million. Short-term EBITDA lowered a bit here. What we always emphasize is that we are a profitable company.
We have good results, and our net profit for this Quarter is almost PLN 18 million. What about our tax inspection? It is still delayed. We are working for tax authorities to receive requested tax information. They are supposed to send information to the Polish authorities. This inspection is suspended. We are waiting. Cash flow, you can see that our business is consistent. Apart from the dividend payment in Q2, and this is the biggest cash outflow, let me remind you that it is PLN 100 million in this Quarter in Q2. We are building our cash position, and in this Quarter, we added about PLN 25 million of cash. Right now, our cash position is PLN 107.5 million.
Quarter to Quarter summary and year-on-year summary, which we'd like to show you, is that TSG is a group that is generating cash flow on a daily basis. Our results are stable. Quarter on Quarter, there are small differences like now, for example, but adjusted EBITDA year-on-year is very similar, about PLN 80 million net profit this year, significantly higher. This is mainly the effect of non-cash accounting. We have a deferred income. Now we are adding this income. Last year, we had to deduct this income. We always base our calculation on EBITDA. Now you can see that at this level, our business is stable and our financial performance is good.
As far as further information goes and further financial information, at the beginning of January 2026, we are going to inform you about initial profits from the group. The financial report for the entire year is going to be published in March, as usual. We are going to publish all the reports at the end of the year. As far as investors' conferences, the nearest one is going to take part in December. The company is going to participate in Woods Winter Prague, and this is going to be an investor conference in Prague in December.
A couple of words of summary, maybe not a couple of words, maybe more. I would like to remind you that currently we are undergoing a large overhaul. This overhaul also includes a human factor. In our organization, we have now external experts, and their task is to help us with our existing products, scaling the new products, and improving our performance of our flagship products. This is happening right now. Let me start from the end. Fishing Clash and Hunting Clash for many Quarters have seen lowered marketing expenses.
We want to have a stable group of players. Based on the example of Hunting Clash, we can see that we can gain about 20% with segmentation. We can see positive results with Central Hub, but we started with - 5%. Now we are reaching + 20%. The last location that was launched in Hunting Clash, even though the lower DAU, we had very, very good results. This entire process is ongoing. We have not seen all the positive effects of the change, but we can see the first signs, whether Fishing Clash or Hunting Clash, we can see that these changes are positive. It takes time because we are moving to a completely different style and work mode, and it's not easy.
We cannot do it overnight, but we can see the first positive effects. Scaling of Wings of Heroes, record high revenue and marketing expenditure, all this is a great stimulus for us. New titles as well. Trophy Hunter, a huge success. We are able to launch this game very successfully. And Rortos, also another game from Rortos, also a big success. Tomorrow, maybe next week, another product that is going to be launched, and it is going to be present in the market. As a company, we have this goal of increasing the revenue of the group. In two out of three segments of the group, we can see huge improvement.
We need to keep on working to make sure that every Quarter, every year, we improve in each of these segments so that all the puzzles start coming together and thus increasing the revenue of the entire group. We are much closer to that goal than we were one or two years ago. It is great news. We are very happy with the performance of Trophy Hunter. We are happy with what Wings of Heroes has achieved. We can see improvement in Fishing Clash and Hunting Clash. We hope that all that together pours a lot of optimism into your heart. I hope we have managed to send all the important messages and talked about all the major things. If you still have some questions, we'll be very happy to answer all of them. For now, that's it from me, and I would like to give the floor to Nina.
Thank you. Let's move on now to the Q&A session. There has been a lot of questions on Trophy Hunter, so let's start with these. Trophy Hunter, when you spent on marketing in Trophy Hunter, did you use some more relaxed benchmarks? Could we also explain why marketing expenditure was as high as PLN 6 million, whereas the revenue was only at PLN 3 million? Why is the revenue lower, and when is it going to exceed the expenses?
When it comes to benchmark, no, the answer is no. We've used the same benchmark as in Fishing Clash or Hunting Clash. We haven't relaxed anything. When it comes to the time frame, there are companies who would approach the benchmarks in a different way. However, we believe that as of now, the benchmark is good. The scale is good as well. What we do in terms of marketing, we make certain assumptions for every game. This is the assumption. Every dollar spent on marketing is analyzed in terms of the return in the following weeks or months. This allows us to estimate when the investment is going to be exceeded by the profit.
If in every given month, we assume that we are going to spend an X and we see that the return on the profit increases over time, this means that we can spend money on marketing. Ten Square Games has been on the market for 12 years. You have seen on a number of occasions where we scaled marketing, and we have never lost cash invested in marketing. Do not worry. We have almost 15 years of experience in spending on marketing. We've been analyzing growth, and there is nothing to worry about. We know it takes time. Especially at the very beginning of a game's existence, expenses often exceed revenue. However, with every monthly or weekly cohort, at some point in time, revenue is going to exceed the money invested.
Another question concerning Trophy Hunter. What kind of relationship between marketing expenses and revenue could you expect in the First Quarter? And what was the relationship in October?
We are not working this way. Looking at the market and looking at the product, analyzing every campaign in terms of its benchmark, if it is not within the benchmark, the campaign is shut down. If it is within the benchmark and we still see some room for growth, we increase our budget. It happens on a daily basis with every campaign. We do not look at it as a revenue to expense ratio. We look at the potential at the time. Nowadays, we want to buy every player, which is affordable within the particular benchmark, and this is what we are trying to do.
We do not try to cook our budget or to adjust it. It's not like we say we spend $5 million and we have to do it. Our marketing department decides when, how much, and in what campaign we spend money. If there is potential in the given campaign, we spend more. If we don't see any sense in it, we do not. Obviously, we control it in cooperation with marketing. However, we are talking about a system where we do not have a decisive voice in our marketing. This is our team.
Despite growing fees on the marketing market, are you managing to increase the amount of money spent on player acquisition?
As of now, it's pretty stable. We haven't developed all the channels yet. It's hard for me to say it. It's the First Quarter. We don't know what's going to happen. CPI is probably going to increase. We are working on improving the title, so we do not really know what's going to happen. Our marketing team is meeting our partner to work out a way to improve our budget. However, it's far too soon to say what's going to happen, whether it's going to be stable or not, because I believe around 50%-100% money is there to be spent more.
How many employees are currently working on developing Trophy Hunter? By how many people can this team grow in 2026?
It's at the moment around 20 people. And again, every team in Ten Square Games has exactly as many people as they need. If they feel they need more hands on the deck, we try to provide them with it. As of now, we are not planning to grow our team significantly, not to mention Trophy Hunter. The team are saying they like working together. Growing any team requires more work because you need to onboard people. Somebody does not fit well with the team. As of now, there are no plans to extend these teams. We are very happy with how these teams are working. We are very happy with the result of their work. If we see that we are losing on potential, we are going to think how to improve it. For now, I believe these teams are exactly where they are. If we are planning to add some more people to the teams, it is going to be one, maybe two people, but not more than that.
Have you seen any defense strategies from the creators from the competition, Hunting Sniper, as a response to you acquiring the players of competitors?
When we launched this game, we have seen that there was some push in their marketing expenses. Was it because of us or maybe purely a coincidence? We don't really know. Nobody wants to lose ground, absolutely. However, in the long term, it doesn't matter. The better will win.
What is the best and what is the weakest side of Trophy Hunter?
Let's start with its biggest advantage. It's a few months since the launch of the game. We have managed to overtake the product by Miniclip. It's a very experienced team of developers. Our rather advantage is retention after day seven. We are very good in terms of this KPI. We need to work more on early retention. There is some room for improvement. We have analyzed data from the new players, and we know where we need to optimize certain processes. This is what we are going to work on in the next months and Quarters. Content is another thing. We have an interesting change in the pipeline when it comes to the content, and we'll see what's going to be the response of the players. We will be able to tell you more about that after the Fourth Quarter.
What's unique about Ten Square Games?
There was Fishing, and when we entered that, we won with them. The same with Deer Hunter in the hunting games. Hunting Sniper, we come to the market with our game, and again, we win, and we take over players. We have always been good when understanding our segments and taking space in the market.
We do hope that in this case, you are going to see better and better performance month on month. Now we have questions about booking structure in Trophy Hunter. Currently, what is the share of micro payments and ads in this structure? Is this structure going to be reversed? About 25% are ads, the rest are micro payments, but we are talking about the share in revenue. There is a commission, about 30% on micro payments. In Trophy Hunter, on Google and Apple, we do not have TSG Store there, so we need to deduct 30%. Bookings from ads do not have this deduction from commissions. Is this trend going to be reversed? Not really. Maybe some cosmetic change, some percent of this or that way, but nothing big.
Communications about the new prototype that was mentioned today. Is its launch going to be officially communicated?
SP, no. This is only a market test in two selected markets, so please follow our social feeds. Thank you.
Now a question about TSG Store. Are you thinking about this solution in Trophy Hunter and Wings of Heroes in 2026?
Yes, we are thinking about it. We want these titles to be introduced to TSG Store, but we are sensitive about it and sensible about it, and we try to think about all the initiatives that are going to be implemented in these two games. There is much to do in these games. I am talking about bookings, of course. We try to follow a certain order, an order that is going to have the best effect on the results of these games. Yes, at some point, it is going to happen, but when it is going to happen? Right now, we don't know.
Another question. Any changes related to the Google policy introduction?
No changes. No changes here.
Okay. What percentage of your players in the US come from the Apple and Google platforms?
I don't remember. No. I don't remember. We're going to verify that. We're going to come back to you with this information.
Now several questions about the prototype, the new prototype. Why is this game supposed to be developed much faster compared to Trophy Hunter? Can you elaborate on that?
This game is going to be based heavily on Trophy Hunter. Maybe even tomorrow, you'll be able to verify what I mean by that. Trophy Hunter was something new for us when designing new games. We followed that path. We now know what was important, what was not important, like pre-registration campaigns for Trophy Hunter. Removing all the noise, now we know what we can leave behind and what can accelerate the entire process. This title is going to be similar to Trophy Hunter. That is why a lot of work has already been done, and this learning curve is not going to be that significant because we have a lot of experience based on Trophy Hunter. We do not have to focus on the noise. Okay.
Next question. When you started developing Trophy Hunter, you probably had some internal expectations. Will you have similar expectations towards the new product? Are these going to be higher or lower expectations compared to Trophy Hunter?
The same expectations. Again, we need to treat these titles very realistically. We see that Trophy Hunter is behaving in a certain way, and we expect that the new title is going to behave in a similar way. What was important for us in the first stage, even if that was one location, we saw that there were players who came back for several days, and they had thousands of gameplays in one location. The gameplay seems to be very good. We're going to see what's going to be, what the situation's going to be with the new game. Based on this information, we're going to develop our new prototype further.
You're introducing a new game, a new prototype. You mentioned that this is a new segment of the market. Why did you not focus on the existing segment? Because you have competencies already.
We had a very interesting idea for a small pivot of Trophy Hunter, and everybody liked that idea. Our competition in this segment is not that hard. We can have a lot of organic growth, and we think that it is a really good idea. That is why we want to follow this path. At one conference, we say that yes, we want to stick with our old segment, but sometimes we see some new perspective, and we need to check that, verify that. It takes several months of work for six people, and we just have to try that.
Of course, it might happen that we are going to follow other paths, other directions. Today, somebody said today in the company that everybody is asking for zombies, but CPIs were very high in that case. At the very beginning, the game has a problem because the traffic is expensive. I do not know whether we are going to go back to Undead Clash, but Trophy Hunter's gameplay is something that fits other types of games. We're going to see what the new prototype is going to be like. As far as the development of new games, yes, we are going to follow this path as Ten Square Games walked us. We're going to look for another idea for ourselves.
Okay. An additional question pertaining to TSG Store. Why not introduce your own store in the context of new games? We have a team working on that, and this team cannot work on all the ideas, and we do have many ideas.
We try to assess which initiatives are going to affect the product. Wings of Heroes and Trophy Hunter are products that are growing products because we introduce new functions and functionalities in them. Introducing them to the store is not just like pushing a button. No, it's a process. We need to work on that. If we work on the store, then the team is not going to invest their efforts into other initiatives that translate directly into our bookings. We work on these functionalities in our new games because we want to increase our bookings. When the bookings are satisfactory, we can go back to the topic of TSG Store with these titles.
Okay. Wings of Heroes marketing expenses. Are you able to increase these marketing expenditures despite the seasonal costs in the market?
Right now, the situation is good. One of our partners had some problems. We discovered that, and now we hope that partner is going to improve that. When they do that, we are going to go back to all the campaigns that we had. Right now, everything looks very well. Let us remember that everything can change, but we can see that CPIs are growing. We can see that e-commerce is being effective. We will see how this is going to affect the performance of our campaigns. Day to day, we are overseeing that. Either we are going to descale the campaigns or we are going to increase our efforts in these campaigns depending on the level of our KPIs. We are going to be flexible here. This is how we treat that.
Okay. A question that is related to our new prototype and Trophy Hunter. Are you thinking about creating new games in a vertical structure, let's say?
Oh, we do have a lot of ideas. I do not like discussing 20 ideas at the same time, 20 things that we are supposed to do because we do not have so many product team members that could deal with that. It's not like, "Oh, we have an idea. We're going to follow that." This requires everyday, very hard product-oriented work. Every game, every feature, every location requires a lot of effort, tears, and everything. Yes, we do have a lot of ideas right now. We are going to implement the ideas that we believe in the most, and we'll see what life will bring us.
Finally, questions about our flagship products. Trophy Hunter KPI is very good. You said that. Any functionalities from Trophy Hunter that are going to be implemented in Fishing Clash and Hunting Clash?
It's a great question. Trophy Hunter has shown us that especially at the beginning of the game, Hunting Clash or Fishing Clash could be very good, even better products. We are looking in that direction. We have done the first tests in Fishing and Hunting Clash. We are going to move more often in that direction. What matters is that in Fishing Clash and Hunting Clash, these are games where you can immerse for a few years. If we manage to improve the early funnel and transform every thousand of players into mid-games or late games, the snowball effect will be even stronger. We've had some ideas always, but Trophy Hunter is helping us a bit. We are going to use it to our advantage. We are borrowing a lot, and we are going to make our tests.
Just as Trophy Hunter is going to borrow features from Hunting Clash and Fishing Clash and Wings of Heroes, how much longer will work on the main two titles take for you to say that we have tested 80% of everything we want to do? The base of product overhaul and what we have already achieved is the fact that the team has transformed into a new model of work. We have talked about the new location in Hunting Clash, which was released in November. It took us long weeks. It was meeting after meeting where we looked for potential risks, where we tested our approach, where we questioned everything we did and put the launch together. Despite a dramatically lower DAU, we had a great result in the first days since the launch. This is what we've achieved.
In the next stage, as we look at Central Hub, we are going to organize this. We started with - 5%. Now it's + 20%. We want to keep the momentum going. We do not know if it's going to take two months or three years. Right now, I do not really know how much it's going to take. As long as we see progress, we have time to work. If we see that our work does not bring any results, we're going to stop. It's not that we have an idea and we need to implement it at all costs. If we see potential, we keep on working. If we do not see potential, we shut it down. It's not a game all in all. We need to deliver the best possible results. We need to move in the right direction instead of following our ambitions. In free-to-play, you need to put your ego aside. It's your biggest enemy. We cannot fall victims to our ego. We need to work on hard data. We see positive feedback. We keep on pushing. There is no feedback. It's the end of the game.
Could you elaborate on Fishing Clash and Hunting Clash? What does it mean that these games could be better at the early stage of the game?
If we look at the KPI of Wings of Heroes and Trophy Hunter, we see that we might much improve retention. This means that from every thousand of players, more people go to mid and late game in these two titles. If a few percentage points or a few percent of the players go to the mid and late game, where we multiply systems, where there is a lot of depth, it will allow us to make even more money off every single dollar spent on marketing. It is a very important game. We want to work hard on it. We see that this work is meaningful because we have done exactly the same in the two previous titles. We want to do the same in the third and the fourth game. We have tested some changes in Fishing Clash and Hunting Clash over years, but we moved from one idea to another. We want to do exactly the same as what we did in Wings of Heroes and Trophy Hunter. It is going to take time. However, we know that Fishing Clash and Hunting Clash have exactly this potential.
As a reference to this question, there is one more. We are coming to the end of the year. I would like to ask the management board to summarize 2025 in terms of its flagship products, Fishing Clash and Hunting Clash. What goals have you achieved? What goals have not you achieved? Where are these two projects? What are your expectations of these games in 2026? What activities are you planning in case that the change you are planning does not improve the revenue?
Let's start from the worst-case scenario. We are not treating it seriously. We are fighting to do whatever we can to increase the revenue. The worst-case scenario can be dealt with in a matter of one to two days. Revenue must go up. End of story. This is the goal of these two teams. This is what we need to deliver. This is what we are concentrating on. This is our main goal for 2020. One of our goals for 2026. I hope this answers your question. We do believe it's doable.
There is one more question concerning the use of AI. Are you using AI to solve problems in the two main titles? Can you do these analyses using AI, or is it based only on the human factor?
We are using large language models, like the majority of people, the ones that the majority of people think. It's not like we ask AI for ideas, and it will tell us what to do. It will tell us something. Is it going to make sense? Maybe. It sometimes takes more time to verify what AI has said than to do it yourself. We need to understand what our players want first and foremost. We have been with them for a longer time, and we need to know what they want. Can AI analyze the needs of our players? I do not think so. Our experience tells us that AI is not a magic wand. It is not going to solve all your problems. I am not saying that we are not using AI. We are in many fields of our operation.
All of our product teams are using AI, and they can use it to their advantage. However, AI cannot understand what happens in our game. They are not there yet. They cannot produce answers to such complex questions. Sometime I attended a meeting by Google in Warsaw. Many companies have demonstrated what they did. The dominant feeling was that AI is doing great in terms of automation when it comes to well-documented and run-of-the-mill processes, let's say processing invoices. It's not as good in creating new things. It's not good at creative tasks. It can only support the human rather than replace it.
There is one more question concerning AI. In what ways are you using AI in your company? Are you transparent in this area?
I don't really understand the question about transparency. Yes, we do use AI in all standard processes like generating graphics, augmenting graphics. We use it, for instance, for translation. We have saved a significant amount of money using large language models for translation. Every product person in the team has access to ChatGPT, Gemini. Every member of the team can use it to test their ideas. AI is a great sparring partner. If you have an idea, ask AI questions about it and see what they say. Obviously, the human needs to verify what AI says because sometimes AI can hallucinate. You are responsible for the end product and what the players receive. However, LLMs are doing great in such tasks.
Let's continue with AI. Does AI have access to the history of behaviors of your player base? Have you tested what AI says about improving these behaviors?
No. Right now, it simply does not work. Currently, these models are not good with questions like that. I have participated in numerous AI events, and this is not only our observation. AI, when analyzing certain things, gives us some answers. It hallucinates. It just gives us, you know, general answers or answers that do not make sense. I do not think that AI is good at these types of analyses. Nothing spectacular here.
Okay, now something else. We have a question about the incentive program in the group. The incentive program is partly based on changes in the company's share price on the stock exchange. How will the change in the share price be calculated? How will the base share price be determined?
Ladies and gentlemen, General Assembly had a resolution on that, and we are talking about improving the share price of TSG in reference to WIG. We are talking about a three-year period. We calculate this figure based on these three months. December is the last month of this incentive program. This is how we calculate that. It is supposed to be 10 percentage points better.
Okay, and several last questions that we have. I think that we've already had answers to these questions, but let me sum up these. New specialists, live-op specialists employed at the beginning of the year, any tangible effects of their work? Could you elaborate on that?
Yes, the short answer is yes. First of all, the biggest challenge with this transformation is combining these two worlds, meaning things that we are good at. I'm talking about TSG and things that our experts are good at. This is the biggest challenge: how to reconciliate these two worlds so that they understand each other, respect each other, and cooperate with each other. We thought about six months of this type of work, and we have seen tangible progress here. Methodology change, this is another thing. We move from an idea to an idea, everyday iteration. We try to improve every day. We look for room for improvement. All this is giving fruit right now. In hindsight, we would do it again. Could certain things have been done faster? I don't know. Not sure about that. Are we happy?
We will be happy when we see long-term changes in the trend. None of us can be excited with only one small change. No, we need more. We need to be certain that this works long-term. When we see these long-term changes, then we will tell you, yes, everything worked fine. So far, a lot of tears ahead of us, a lot of sweat, a lot of effort, a lot of additional hours that are needed to reach the place that we want to be in. Let me add that we have new games that did not exist two years ago. We have Wings of Heroes that is being scaled up, that we did not do that before. We improved in two out of three segments, and we feel more comfortable right now compared to the situation from two or three years ago.
I know it's difficult to believe in something that you cannot see, especially when you are a person who monitors the progress of our company. The same happened with our new games. People said, "Oh, why are you doing this? Nothing worked." Like, "Why are you not focusing on Trophy Hunter?" Please, let's stay calm. It takes time. Launching Trophy Hunter took a lot of time too. Please, have patience. Of course, you can ask difficult questions, but at the end of the day, we are in a much better situation compared to the situation three years ago.
Okay, so player retention. Have you seen any improvement after changes introduced in the games?
Okay, let me give you an example from Hunting Clash. Indeed, we have a tangible improvement in one and three-day retention and retention in the following days as well. We hope for the better. We hope to see more.
So any interesting entities that you would like to acquire or M&As? Is this something that you are considering in the years to come?
Yeah, there are certain interesting initiatives. There are certain interesting entities that are present, let's say.
Is anything concrete that you would like to acquire?
No. Right now, here and now, not really. GameStar. Performance of GameStar is the studio developing any progress or regress.
They are working on a new title. Is that right?
Yeah, we have a new title. It was launched two weeks ago, if I'm not mistaken. And the first marketing results are encouraging, I have to say. We'll see. This is only two weeks now, so I don't want to be super optimistic, but the situation is good. They are fighting. They are fighting. And I like that about them. They are not giving up.
I think that we have an additional question about GameStar. Can you talk about looking for a breakthrough game with GameStar? None of the titles from this studio has been as successful as Ten Square Games titles. Yeah, I think so. How can you comment on the development of GameStar? What can you say about that?
We've seen quality increase with GameStar, the quality of the products, improvement in the parameters as well. We assess their work very positively. With Fishing and Hunting Clash, similar situation, we have not seen the achievement of this big goal. We have not seen any visible increase in bookings. There are positive elements, but we lack the cherry on top.
Fishing Clash 2 remake. Works that are going to be launched. Anything that you have to say?
No comment.
Okay. Stop prices. Are you considering buyback, dividend payment, or is it too early to say?
It's too early to say. Let's wait for the closure of the year, but our dividend policy is still on. So either buyback or dividend payment, this is still on.
Okay. And some questions about company from the Rortos portfolio. So Real Combat Simulator. So is the team one or two heads strong? Any strong update? Because from the launch, there was no update.
No, we are adding new planes. So things are going on. Surely, we are going to improve the game. We are going to add more content to it. There are going to be changes to UI and UX because players are bound to come across multiple problems. So the title is going to be improved. However, we know that before we are indexed by Google, a few some time will have lapsed. There is no need for 20 people to be working on that team because it's going to be wasted effort. As soon as we see that the snowball is starting to accumulate, we are going to expand the team. As of now, there is no need to do that.
There was one more question concerning Real Flight Simulator. Have you seen a positive impact of the last update? I'm talking about the Spherical Model 3.0 on KPI.
It's an interesting story, you know. The players of Real Flight Simulator or similar games expect changes and new content all the time. It's not that content or a new feature generates a lot of revenue. Again, it's building slowly, month to month, slowly building your position and moving from one level to another. It's not going to be a game that is going to have a 20% or a 50% revenue spike in a month. You need to be patient. What Rortos have demonstrated over time is that they know how to build Real Flight Simulator, and they know how to get a bigger share of the cake. Right now, we are somewhere between number one and number two. When we started, we were one of the last players in the segment. We know that we can become a leader of this segment in the years to come.
There was one more question concerning your financial report and your expectation of lowered revenue in the last Quarter, the First Quarter of the next year.
It's not that we are expecting it to be this or that. What we do is highlighting that when analyzing our business, you need to look at marketing expenditure as an investment in our products. Having increased marketing expenditure over the past three Quarters means that the effect of lowering the expenses is going to have its similar effect. This is only an advice to you on how to analyze our company. Lower marketing expenses have their impact in the longer perspective. So possibly our revenue will be reflected in that. It is only about the logic of our business, not about our expectations for the next Quarter.
These are all the questions we have received before. There were two additional questions concerning how the company is planning to organize the Investor Day in 2026. Answering this question right away, yes, we are working towards such a scenario. The beginning of the year is somehow not very good for us to plan such an event. As soon as we have learned the date, we are going to find out. There was one more question concerning the division of our games between iOS and Android in the US. When it comes to bookings, it's more or less 50-50. Our team has already checked that.
Thank you. These were all critical questions. Should you have any more questions, we would like to encourage you to take part in a chat, which starts in an hour. Should you have any more questions, we'd be very happy to answer them via email.
That's it from us for today. Thank you so much.