Witamy państwa na konferencji.
Welcome everyone to a conference devoted to financial performance for Q2 2023. We have Magdalena Jurewicz with us. Good morning, everyone. Good afternoon. And myself, Andrzej Ilczuk. And we now would like to present to you briefly.
Nowa strategia.
Our new strategy, restructuring and lower cost base, as well as our focus on our portfolio of Ten Square Games, impacted our performance in the latest month. When you look at what's the most important thing currently, you can see the first results of hard work, the work of the entire team. We believe that these results are very good. We have an increase in performance in our income and adjusted EBITDA, which actually was record high last month. And this was because of our refocus on our strategy. We focused on our technology. We were able to eliminate a lot of bugs. The shorter time of loading of the game is, well, shorter, and the user experience in the game is better, which translated into the increase of organic traffic, and it also increased the positioning of our titles in Google and Apple collections.
As a result, combined with our new approach to creating new features and A/B testing, more intense A/B testing, this helped to improve our performance. At the same time, the entire restructuring allowed us to strengthen our main game teams. As a result, we produce faster our features, and we, in fact, have a larger amount of A/B tests that help us to introduce and modify these features, and it allows us to have these features in an optimal state. Let's look at Fishing Clash right now. Here we have an increase in bookings, and what's very important is the following. In the latest months, we focused very heavily on improving the quality of the traffic acquired, and we see the first results of that.
What I also wanted to mention is something that we work on very heavily and that we have worked on very heavily in the latest months. So TSG STORE, this is our latest initiative. This is our internal store, in-house store. And with the margin of 10%, about 10%, compared to 30% that we can see in Google and Apple, this helps us to work on all the margin-related issues and allows us to maintain more revenue for us. At this stage, as you can see very well, our store is at the very initial stage. It lacks a lot. It lacks graphics, value for money, utility, etc. But we are going to work on that very intensely. But now the store generates 2.5% in our bookings, which we believe is a very good result.
In the months to come, we are going to treat our store as a project that's going to be invested in and developed. Additionally, this month, Hunting Clash will join the store, will be added to the store, which should produce very positive results as far as our margin goes. As far as the very Fishing Clash goes and our activities here, as I've mentioned before, we worked on the technology, and this was very important. Now players have a game that uploads faster. That's the first thing. Less bugs, less crashes in the very game. This is immensely important for Google and Apple as well, because the better the quality of our application, the higher we are positioned in their rankings. In fact, this positively translates into the amount of organic traffic. And as we know, organic traffic is very important.
This is because, well, simply it is important, so we need to remember about that. As I have mentioned before, LiveOps, this is something I believe is immensely important. In the past, we had LiveOps, where we tried to focus on single events or single days. Recently, we have changed this approach completely, and we actually focus on the long-term approach and the economy. This allows us to control this economy better, and it allows us to have a healthier game, so to say. And as far as features go, I'm not going to list them all, but one of the most important features that we try to work on is Power score. This is a feature that allows us to combine all the features that already exist in the game.
Also, it allows the player to see all their activities, and players can see that all these activities matter, which translates into better performance. I think that this feature has been actually treated very well by the players, and their reaction is very good, and this actually creates very positive prospects for us in the future. As far as the very ambitions go, as far as Fishing Clash goes, we believe very strongly in the increase of performance of our game, introducing important features, enlivening the game very much. And you can see our pipeline here. We believe that these activities will result in tangible results in the months to come. Further features, Power Score, this is one of them, but we are going to add mid-core game elements, components.
Further on, we are going to focus on the best monetization as far as our games go, and we believe that these features are going to be more or less safe and tangible. Of course, we cannot foresee what's going to happen, but now we can see that the situation is Power score is very optimistic. Multifish, this is one of the features that appeared in Hunting Clash as the first one. And now, looking at its performance in Hunting Clash, we want to transfer it to Fishing Clash. It helped us as far as the economy of the game goes, and we believe that it's going to be an ideal, perfect feature to transfer to Fishing Clash. And another thing, we believe that this is one of the most important features, that is the browser version of the game.
The browser version of the game will help us to work with our internal store, and it will help us to transfer a greater amount of traffic into this channel of distribution, and it will help us to reach a greater number of players, new types of players. I believe that this is something that we should intensely work on. The first version of this store, oh, excuse me, the first version of the browser version of the game should appear in Fishing Clash soon. Now let's move on to Hunting Clash. Similarly to Fishing Clash, we have focused on the quality of the traffic acquired, and we can see the first effect of these activities. The traffic is more tangible, the quality is better.
And as far as another thing goes, and this is something that I mentioned before at the previous conference, it's the Content Release Plan. Our players want to have new features, new things, elements in our games, and we can see a lot of improvement in the last month. However, this is a process that leaves us room for improvement as well, and this should translate into better engagement and better monetization in the long-term perspective. Additionally, the results of our activities that have already been launched, you can see them in the bottom right corner. We believe that that's not the end. And now something more about Hunting Clash development in the recent months. As you can see, we have managed to provide a lot of things to our players, and now we will have a technological review of our game. Why now?
Well, because first we wanted to focus very heavily on Fishing Clash. We wanted to devote a lot of time to it, and we wanted to, you know, leave no stone unturned, and we managed to do that. Right now, we are focusing on Hunting Clash, and we are planning to improve the performance of the game to a great extent. Hunt Multiplier, this is something that I've already mentioned, and I mentioned that in the context of Fishing Clash as well. And another thing, a new weapon system that premiered took place on Monday. We have A/B tests, first A/B tests launched, first events, first events related to this new system. They should start off at the end of this week. To sum up Hunting Clash, well, we believe in the potential of this product very much. We think that this potential is quite extensive.
We want to develop this game further on. The weapon system that I mentioned, one of the most important features of the game, like Hunting Clash, and our store that very soon is going to be actually available in Hunting Clash as well. Also, development of mid-core elements or components. We believe that this game has a huge potential. And now let's move on to Wings of Heroes. I would like to remind you that this game premiered last year in October, so it's quite a new product on the market. What we can see is that after intense market tests and marketing tests, we see that this product is great. It's fantastic, promising early KPIs. However, it still lacks depth, and this is something that we need to work on. This work on the depth of this game is very important for us.
However, in order to achieve that, in order to achieve this depth, we need to focus very much on the technology of the game itself. Right now, I wouldn't like to say that we are halfway or 70% of the way as far as the work on the technology goes. However, this is something limiting. It limits us in providing new features. The applied changes have allowed us to have a production that is two times faster. That produces a very positive outlook for the future. So we hope that this product is going to be a long-term product for years. So to sum up, this is the very beginning of the development of Wings of Heroes. Right now, we can say that the features that have been launched in the recent months have impacted very positively the conversion of players and retention of players.
Now we are moving on to the second stage, and the most important systems in the new stage are going to be LiveOps. This is a perfect moment to introduce them in the game. Clans, this is another functionality feature that is going to be important. The combination of these two features is going to be very helpful, similarly to Hunting Clash and Fishing Clash. We hope that the situation will be similar with the Wings of Heroes and that by the end of the year, we're going to see positive results of our activities. Additionally, as you can see, this game requires basic work, especially concerning first-time user experience. We're going to focus on that very heavily so that we can provide an even better product for our players.
Okay. Now let me move on to financial performance. And as Andrzej said, the effects of our work are visible in June, July. I'm going to sum up the figures in Q2. I assume that you understand the situation, but let me sum up. We have quarter-over-quarter drop in bookings, and this is related to the decrease of acquisition costs, marketing costs. And as Andrzej said, this expenditure was actually limited deliberately so that we can acquire high-quality players. And we can see that the profits are going to rise in the months to come, and we hope that marketing costs are going to change in the months to come. And user acquisition costs are lower than the previous ones as well. So the cost of general management are concerned. We have seen a drop quarter-over-quarter. This is something I would like to talk about in detail.
I believe it's important because such products concentrate on improving our profit margin and optimizing our costs. We obviously incur direct costs. So as we have changed our strategy, we also have redirected our focus, focusing on doing certain things in a different way, making sure that they are run as efficiently in terms of finances as we can possibly do them. Obviously, the cost of other dependent elements is increasing. We also concentrate on our offices. We're looking for savings. We are looking at options at optimizing our finances. So in this case, we are talking about G&A. But in total, we can see the effect of first-cost cutting initiatives, answering your question, what we believe is going to happen in the future. We believe that the previous quarter was a transitory period. We still laid people off in April.
We still need some time to change and remodel our business comparing to May. So the effect of our cost-cutting initiatives is not full. We believe that further months are going to be able to present a full effect of our initiatives. Our Adjusted EBITDA reached around PLN 22 million, 21.9. But if we take into consideration June, July, and August, we believe we can improve this result. And something to sweeten the news, we have made a profit of previous periods. In previous periods we recorded losses. In this quarter, we reported a profit of PLN 7.6 million. Cash flow, irrespective of what is happening in our business, we always have a strong cash position. Despite the fact that we had to pay severance payments to our employees, we still managed to generate cash, around PLN 30 million from operating activities.
At the end of the quarter, we had PLN 105 million in cash. I know, it's quite a lot, but it's a safe cash position allowing us to run our business, consider our options, and take steps ahead. In June, we paid dividend to our shareholders in the amount of PLN 72 million. It was 100% of our consolidated net profit opposed to our policy. But this is the profit we wanted to share with our shareholders. We've been present on the stock market since 2016, and we paid to our shareholders over PLN 200 million in dividend.
Może takie na koniec małe podsumowanie.
A short summary to finish with. O, I believe it was a very busy summer in TSG. We have strengthened our teams.
Że te wzmocnione zespoły tak naprawdę tworzą.
We have noticed that the first strengthened teams are faster in creating features that are better quality.
We have seen the first positive results of this strategy in July and August. This, combined with a lower cost base, shows the first positive results on our finances. We believe we are on a path to a stable growth. Because of that, in coming months, we will further work with developing the product and continue on the path of development because we see measurable effects of our activities. As far as our products are concerned, I would like to talk about Fishing Clash and Hunting Clash together. We'd like to focus on more mid-core features. We would like to further develop our internal store as well as browser versions of the games. These three elements, in our opinion, are going to pay dividends to our business. As far as Wings of Heroes are concerned, I would like to stress once again that this is a very new game.
We still need some legwork to do with this game.
Tak naprawdę te systemy, które są najbardziej kaloryczne, na przykład.
Most horrific systems such as LiveOps are going to be introduced into the game.
Chcemy natomiast robić tego w ten sposób, że dostarczymy jakiekolwiek LiveOps.
We don't want to do it hoping for the best to happen. We want to know that the technology on which it is based is reliable and that we can count on it.
Ta uproszczona struktura, ta zmiana w samej strukturze.
The simplified structure and the new change structure of the game supports the workflow and the flow of knowledge between the teams. This, in turn, allows us to further, to quicker. Przy i provide content to our players, making sure that it is better quality. To to We hope we can maintain this pace in the future.
Chciałbym Państwu bardzo podziękować za obecność i zapraszam.
I would like to thank you for your presence, for being with us, and I would like to welcome any questions that you might be willing to ask. That's all for us. Thank you.
Dzień dobry, dziękuję bardzo. Ja tylko chciałam jeszcze przypomnieć o wydarzeniu.
I would just like to share with you a short reminder about a few events that are planned in February, in the first of them in October, and November, and the second in December. I would also like to remind you about the following dates on which financial results are going to be published. We are going to provide you with an update on sales in the games at the beginning of October, as well as the financial report and the following conference on the 20th and 21st.
A teraz może przejdziemy do pytań.
First question. Pierwsze pytanie do Pana Prezesa od razu z gratulacjami osiągniętych wyników w ostatnich miesiącach. I pytanie brzmi: co w lipcu i sierpniu spowodowało wzrosty płatności w Fishing Clash? Liczba graczy czy średnie płatności od nich? Podobne pytanie dotyczy gry.
The same question concerns Hunting Clash. What has the number of players or the value of payments from players? Co wpłynęło? Well, what was the decisive factor?
Może pierwsza rzecz. Bardzo dziękujemy za miłe spotkanie.
First of all, thank you for a very nice compliment. I would like to thank our team for their hard work. They've done a terrific job during the summer.
Tak jak już mówiłem, tych rzeczy, do których naprawdę przysiedliśmy.
As I've said, there were many things on which we worked during the past few months. We improved the organic mobile traffic, improved LiveOps in our games, we added new features.
So all that together has benefited our company. The traffic has increased. We have improved our monetization in the game. We have provided our players with better events. Powiedziałbym, że to jest facilitating or fueling monetization. So there isn't one single factor that we can say has led us to this point. It's been a series of changes in our approach that made this possible. Na przykład ta cała zmiana technologiczna. The entire technological overhaul is something we should mention once again because it was a big process that allowed us to achieve the results that we are talking about. And the first stages, we haven't seen much change, but after some time, we can say that it was an investment worth the effort and the resources. Bardzo dziękuję. Thank you so much. Moje pytanie dotyczy rentowności kampanii. The profitability of your marketing campaign. Czy jest tutaj przestrzeń do poprawy?
Is there room for improvement, in your opinion? Jak zarząd patrzy, jaką ma perspektywę dla Fishing Clash? The profitability of the campaign, how strong is the pressure of your competition in the market? And when it comes to Q3, are we supposed to expect similar expenses on marketing comparing to the increase in payments? Z marketingiem trochę to jest tak, że ciężko jest go przewidzieć. Well, when it comes to marketing, it's difficult to predict anything. Launche jakichś nowych, dużych gier mogą być. Launches of big games can be distorted. When e-commerce, when it becomes very active with my distorted plan for marketing initiatives, it's hard for me to say anything about our marketing plans for October, November, December because we never know what's going to happen. I can honestly say that every time we start to optimize our campaigns so that they're most profitable for every penny spent.
Może to wpłynąć pozytywnie, czy pozytywnie bądź negatywnie na marketingowe wydatki? We can have a negative effect on our marketing spending on our new channels. At the moment, we are working on our browser version of our game, and we don't know how it's going to affect our finances or costs or expenses. Będziemy także pracowali nad nowymi wersjami. We are also going to develop new versions of the game in new stores. Mogę pewnie bezpiecznie powiedzieć, że chcielibyśmy. I believe I am on the same side when I say that we want the new version of the game to be launched on Amazon devices. How all that is going to affect our marketing expenses as well. Kolejna rzecz, która to wpływa na nasze kanały. Another factor influencing our marketing expenses are the channels. TikTok is starting to deliver better and better.
Graphics assets have a much shorter lifespan on TikTok, which also requires us to work harder and be more creative. But we know that even such a channel as TikTok will be profitable with our games. Bardzo serdecznie dziękuję. If there are any questions or concerns concerning marketing. I brzmi dokładnie, jakie są główne wyzwania. What are the main marketing challenges ahead of TSG? Dokładnie. Yeah, this is the question. Więc tak, jeżeli chodzi o sam marketing, no to. As far as marketing itself concerns, we are in a fight for new creations, for a new approach. Na pewno jest niesamowite. Every new creation has a lot of potential. The entire market is in competition for new solutions, and we are no different from our competition. In recent months, we have observed that we are supposed to test more and more creations than we used to in the past.
Kładziemy duży nacisk na. We put a lot of emphasis on creative elements, optimization of these elements, as well as new distribution channels. Także widzimy, że jest na pewno bardzo duży potencjał. We see that there is a lot of potential in these areas. Kolejną rzeczą, którą też pewnie warto zwrócić uwagę, jest to, że marketing na końcu. Deserves our attention is the fact that all in all marketing is unpredictable. You never know how the next month is going to be. We have seen a very positive effect of our marketing initiatives. We know that our marketing campaigns have become more profitable, but this doesn't mean that we are going to decrease the amount of acquired traffic. We have seen a positive result on Hunting Clash. It's pretty slim at the moment, but maybe we'll be able to maintain it. So that's how the situation is at the moment.
Bardzo serdecznie dziękuję. Wydaje się, że jeżeli chodzi o marketing, to mamy to. As far as marketing is concerned, komentowaliśmy poziom nakładów w trzecim kwartale i czy można zainwestować w Hunting Clash. We have talked about whether it could be possible to maintain it in the fourth quarter. Now I would like to address a series of questions about TSG Store. So let's tackle these questions now. Pierwsze pytanie dotyczy tego, jak jest z długoterminowym celem. Płatności, które będą przez TSG Store przechodzić dla gier Fishing Clash i TSG Store. Czy obecny poziom nakładów jest wspierany dodatkowymi działaniami promocyjnymi dla graczy? Supported by other activities for the players. To co by nas oczekiwało? To say this is not a satisfactory result. Tak jak mówiłem, nasz sklep jest bardzo. As I've already said, it's a very early prototype. It doesn't look very good. Dlatego już widzimy 12%.
And yet it has managed to bring 12.5%. Nie chciałbym powiedzieć za mało. I don't want to say too much. I don't want to say too little. Nie chciałbym mówić dokładnie o cyfrach. I wish we didn't talk numbers right now because it's very difficult to put a tag on it. Jak duży jest to udział u nas w tej konkurencji? I know how big a share it is in our competition. We know how big a share it is in terms of other players. Z jednej strony powiedzenie, że byłoby to. On one hand, saying that an X would be a satisfactory number. Mogłoby to zaznać jako coś jako coś małego. It might seem. Ale. Underwhelming. Nie chciałbym tego nic mówić. Przepraszam, trochę się z takiej zakręciłem. Serdecznie dziękuję. Thank you very much. To jeszcze jest takie pytanie. Okay, another question.
TSG Store, is it run by the company and do you develop it yourself, or do you use support of some external company? So let me answer this question. The very page is ours, the very website is ours. We manage it, we are owners of it, we develop it, we build it, we manage offers, price, etc. But we have an intermediary that supports us in these activities and bookings. So bookings are not generated by Google Play Store or App Store. So we choose a contractor and, based on negotiated terms, this intermediary manages the bookings in the store. So we do have an aggregator, we have an external company, an intermediate company, an intermediary company that manages VAT, bookings, etc. We have an agreement, company-to-company agreement, so we can negotiate the terms.
The commission compared to bookings is about 10%, and this includes both banking costs, return costs, intermediary costs. The entire thing is 10% compared to 30% for Google or Apple. Coming back to your questions, yes, we run the store ourselves, but we do have an external company that actually manages bookings. Okay, another question. Prowadzenie sklepu. It's about running the store and a new way of sales. Will it not result in conflicts with Apple and Google because of the loss of their commission? This is similar to the Epic Games situation. No, definitely not. We have do ne our research and we talked with the biggest players in this sector. We actually got to know how to run the store, what challenges can be faced by us in the future. We know what to avoid, we know what direction not to take.
So we are very well prepared. And we made sure that we are safe and that Apple and Google do not think that we do something wrong. To jest pytanie dotyczące. Okay, another question pertains to your work on new titles. Right now, not including Rortos and Gamesture, do you actually work on any new titles and do you have any plans to run Fishing Clash 2? Okay, just let me say this. As a company, we are not like CD PROJEKT Techland. We have a different model of operations. These are companies that need new titles in order to have very good performance. Możemy operować na naszych już. We can operate with our current titles present in the market and we can still have fantastic results, fantastic performance. Right now, I would not like anyone from our product teams to think about new projects, new titles.
So no, we are not working on new products. If we take a decision like this, if we make a decision like this, I will tell you that in a week we would know what product we would like to create. As far as Fishing Clash 2 goes, well, we know, but we won't tell you. So okay, thank you so much. Another question. It pertains to Gamesture. When Ten Square Games will increase its shares above 50%, are there any terms or conditions that you have to meet? Because looking at Gamesture, the performance is very good. To w takim razie mamy umowę inwestycyjną. So we do have an investment agreement that pertains to buying new share packages in Gamesture, but this agreement is not the only thing that we can do.
So we can increase our share in Gamesture, but right now we do not have the breakeven point in the company. So we are looking at this, but we'll see. Depending on the perspectives of the company, our engagement will change sooner or later. Okay, thank you. And a similar question pertaining to Gamesture. When will Gamesture be profitable? And when will you share new, when will you buy new shares? You already answered that. Okay, so this is more or less more than 10 months, less than 20 months, but it depends on a large number of independent factors, depending on, for example, marketing traffic. So let me say that it's a mid-term perspective, but let's give this company time. When we were buying it, it did not have positive results. So we are waiting what the future will hold. We'll see. Okay, thank you so much.
We do have one more question. Let's go back to the question of TSG Store. And I think this question pertains toward our CEO said. So the level of sales presented by your competition, what are they? Od kilku do kilkudziesięciu procent. Several to several tens of percent, you know, depending on what results are published. Playtika, for example, it's 25%. But there are companies that do have higher levels. So the performance of internal stores are higher, they are sometimes lower. So there's no rule, there's no rule about the average figure. So the range is quite extensive. If I were to guess, not seeing all the data. Czy audiencji naszej. If I were to guess the figures achieved by a competitor, well, I would say that it depends on the type of player and how the player actually operates in the game.
Our type of player, I think, is conducive to use the browser version, to use our internal store in TSG Store. Well, what level this will be, I wouldn't like to say at this moment. Serdecznie. Thank you very much. O nowych sytuacjach. New titles, we've discussed that. Now, the question about the Chinese market. Are you planning or analyzing any possibilities of going back to the Chinese market? Well, let me tell you this. Yes. The answer is yes. Will the LiveOps be of key importance? Will this be a key test for Wings of Heroes? Are you planning any more important milestones? When will you start scaling the game? Tak. Czy to będzie jakaś taka próba? Will it be the ultimate test? Well, no, definitely not. We have an extensive idea about Wings of Heroes.
We think that LiveOps might work there, but with LiveOps, the situation is as follows. Similarly to any feature. So they might be an engine for huge development, but sometimes you might need three, four iterations and you might need like five, six months of further work. So until we actually launch the system, until we see how the players react, what they like, what they want to do, what they're not to do with, it's difficult for me to say, to give you any definite answer. So we understand what should be included in the system, but as always, this is kind of fluent, you know? It fluctuates. It might turn out that a certain type of event that we did not focus on actually performs best.
It might turn out that we need two months more to develop the system and to actually, you know, have the system be well integrated with the game. It's a very complex question and there's no one answer to this question right now. Thank you so much for your answer. Now let's move on to further questions. Another question pertains to Fishing Clash and Hunting Clash. Have you observed any increase in the competition? Nie. No. Znowu konkurencja na tych internetowych. As far as competitors go, well, we will have competition in these markets. There are new games, new titles, and this will always be like that. We always look at our competitors through the prism of, you know, a positive perspective. Competition is good because it requires us to be motivated to develop further and faster. We look at competitors as something very positive.
So it's a positive impulse to work. Fishing Clash, Hunting Clash, and the entire sector, you know, fishing, hunting sector, well, there are new titles and these are very sophisticated games and they will appear. As far as the present situation, well, I don't feel that this is a problem for us. Major League Fishing with this, has it actually brought you any beneficial results? Will you continue these initiatives? Yes, we will continue these initiatives and the results were tangible. For example, we looked at the way how we launch new fishing bays, fisheries. We looked at the way we launch these, how we can do this better and this new format proved to be actually more efficient compared to the previous ones. As far as the very traffic, well, that was a pilot, not the last one.
This pilot was supposed to show us what we can do with Major League Fishing, do what we can do with similar leagues like that, and we are going to continue this initiative. We are going to look for new solutions. The results of June, worst performance in June was this, the impact of the holidays or lower marketing expenses or maybe lesser work focused on the basics of the game. Well, lack of new content, lack of new locations, that was the major determinant. As I've said before, content release plan, how it should be built, not launching new locations too frequently, avoiding a situation in which players complain that there are too many new locations. This is looking for a sweet spot.
I think that we have found something interesting at this moment and we might need several months to come in order to observe what's going on. It might turn out that, you know, the results are going to be good, but it might also turn out that the players will say, no, these locations are launched too frequently and they will expect some more interesting things from us to suggest. But in June, I think that the locations, that was the major determinant. Now, before we talk about cost and EBITDA, let's talk about precision of data from Sensor Tower as far as your statistics go. Okay. Sensor Tower provides net revenues, so after the commission. And we use roundups here. So we talk about figures above several millions. So we have a roundup.
If, for example, we have a figure above a million, then we round it up to several hundred thousand. We do have an internal TSG Store. It's not reported in Sensor Tower. So we will have to add that, the share of the store in that system. Thank you so much. Another problem, browser version. Oh no. Okay. Now a very concrete question. EBITDA in August, will it be repeatable? And is it a one-off event? Do you see any perspective of further results like that in the months to come? EBITDA depends on the margin of the titles. So with better performance of Fishing Clash and Hunting Clash, this result actually grew very nicely in August. Is it repeatable? Well, we would like it to be repeatable, but as Andrzej said, he talked about June, a lack of one location can disturb a monthly result.
The same pertains to the future. Different features are planned in a different way. Some features might cause an effect and then another feature might cause a disturbance. So there might be some disturbances month-on-month. But we want our margin, not only profits, but a margin to grow. But I'm not going to say that it's going to be this particular figure up month-on-month. No. And let me just remind you about the cost discipline because the final performance is not affected by the games themselves. I think that the months to come will be actually cleared up, so to say, as far as the cost basis goes. And let me just add one more thing to what Magda said. Remember that there's a certain specificity to certain months. Let's look at December, for example, in the gaming store.
It's a better month, but there are also very difficult months. Let's take September. You go back to school. This is a month which, till the very end, you don't know what it will look like. So, you know, when you look at the Q4, it's difficult to say whether the holiday season will produce this or that result. You know, so you can't take a ruler and measure it and give you a particular figure in a given month because some months are indeed disrupted and we do not have any impact on that. You need to buy a backpack to your child and it's more important than, you know, games. So you're going to, you know, buy the backpack and the players will stay with us in the long-term perspective, you know. Thank you so much for the answer.
There is another question pertaining to the previous answer about the repetitiveness of the EBITDA results as well as the improvement of your profit margin. It's about the cost of general management. The decrease cost quarter was a result of remaining cost. What costs have you managed to limit? And can you repeat the results in the next quarter as well? I'm looking at what costs are you limiting. We are talking about the cost of recruitment, the costs of employment, the costs of locations, the costs of our presence on the stock exchange, taxes, etc. So usually, as we tend to believe, it depends on many factors, including the number of our employees, how many business trips we take, and how active we are in the gaming sector. We know that some holidays are not very intense when it comes to meetings.
So I hope possibly this could be expected in the next year, in the same season, but I don't know if the same level is capable of being repeated in the quarters to come. But we do see some dependence on the number of employees. How many additional savings do you think you would make if the entire quarter, if in the entire quarter you would employ the current number of employees in the company?
Tak. Czyli jeżeli chodzi o jakby spadek kosztów zatrudnienia w wynagrodzeń, to może decrease of cost is concerned, it's about PLN 1,800,000. This is a lot per month. Do tego należałoby też pieniądze ułożyć właśnie na koszty związanych.
The margin on the number of associated employees, I don't know the exact number, but I believe it should be somewhere around PLN 2 million per month. Total. Bardzo dziękuję. Thank you so much for answering the question.
The next question concerns the way of providing data. You no longer quote revenues and marketing expenses in the games after finalizing every quarter. Why? Tak. Czyli może powiem tak. Ogólnie zrezygnowaliśmy z wykresu przychodów i wydatków. We got rid of the graph of revenues after. Nie mamy kolejnego kwartału zamkniętego, więc jakby ten quarters, because we do not have. This is the time when we still, when we still haven't finished a particular quarter. We are following a pattern in the gaming sector. Everyone is looking at what the competition is doing. And I believe that quoting expenses per month too soon doesn't bear very well on us because the competition doesn't do it. We don't want to just show too much data to our competitors. Kiedy została zaplanowana kolejna płatność z tytułu EBITDA? When can we expect another payment for earnout? W kwartale 2023.
Is it going to happen in Q4 2023? The first earnout was for half a year. It was settled in the second quarter, whereas the next payments are going to take place on an annual basis. So for the year 2023, we are going to pay after publishing our Italian financial results around April or May when we make payments for the entire 2023. This will happen. The same rule will apply to years 2024 and 2025. Another question concerns costs that we use to adjust your EBITDA. We are looking at costs of acquisitions, review of strategic options. Does it mean that you are considering other transactions? Yes, of course. There is such a possibility. We might be engaged in another M&A in the future. However, these costs related to open processes, we are constantly looking, analyzing options.
If we do not acquire a new company, we usually settle the costs as of the date of the process. Are you considering a buyback of your own shares? No, not at the moment. We will have to communicate it to all stakeholders. There is one more detailed question concerning the position of other single events. What does the amount of PLN 1 million relate to in this pool? These are costs of our legal activities, legal analysis. The aim of the legal analysis was to determine what can we do in order to defend our titles. Thank you so much. One more question concerning a purchase transaction on the Rortos. In 2021, at the height of the pandemic, the company acquired Rortos for EUR 45 million plus a few years' worth earnout. At the moment, how about the value of your company?
What is your perception of the acquisition of Rortos? Are you planning to conduct an audit of the transaction? The value of TSG is expressed in the value of our stock. So this depends on the shareholders. However, the value of this transaction, of acquisition of Rortos, was based on the analysis of future cash flow, the correct Adjusted EBITDA of the business. That was the basis for our estimation of the value of the company at the time. And this is the method that we currently apply. However, after reviewing our financial results, we run tests on this value. Every time we verify whether this is a profitable business, if it brings profit, if future cash flow justifies the price that we paid for it. Having analyzed all the mentioned elements, we still maintain that this was a profitable transaction. These titles are still bringing profits.
This is our evaluation of this company. We haven't run an audit, but however, we constantly analyze the situation. When Rortos itself taka spółka właśnie nasz ten Rortos pojawił się na rynku is concerned if somebody was interested in an M&A, we would definitely consider such an option. I takie pytanie techniczne. One more technical question. Czy można szacować przychody odroczone w czasie? Czy bez dokładnych danych wewnętrznych da się poszacować tę pozycję? How do you evaluate deferred income? Can we run any estimation of this position? Wydaje mi się, że jeżeli chodzi o szacowanie na potrzeby kwartału, to jest dość trudne, ponieważ when it comes to quarter-to-quarter evaluation, it is very difficult because it depends on the average short lifespan of a player close to the end of the financial period. It's not a piece of information that is readily available.
However, judging from the long-term perspective, year to year, as long as the game is under development, the revenue is deferred in time. When the game reaches its climax, the revenue should be added to our P&L. So that's when the game ceases to exist. All historical payments are equal to historical revenues. This is the shorter long-term perspective. However, it's very difficult to say anything about it in the short-term perspective. Well, there is one more question. It's not very precise, but I suppose it concerns Rortos. Your liabilities on the agreement are increasing. So shouldn't the deferred revenue have a positive income out result on the balance? I believe that we are talking about liabilities on their agreements with our players. Translating it into our own situation, I can say that the liabilities are increasing. To jest odroczenie księgowe, tak? Because it's an accounting deferral.
These payments are being made on a day-to-day basis, and we need to defer a portion of revenue za czas użytkowania tych przedmiotów. That is owed to the players. Aha, to jest chyba część druga. After the date of the balance sheet. Shouldn't it have a neutral effect on the balance sheet? Yes. At the end of the day, it should be in line. However, in the short-term perspective, we defer the revenue, decreasing our income and decreasing our financial result. Another question, more general, concerning the product. Undead Clash? That has received very good preliminary feedback. Is it going to return? Nigdy nie mów nigdy. Never say never. Mówiłem, na ten moment nie chciałbym żadnego produktu. As of today, I wouldn't like our members of the production team to think about new programs of new games. I don't know what the future will bring.
Aktualnie, który rynek stanowi największy potencjał? Which market has the biggest potential for Fishing Clash and Hunting Clash? And I'm talking about countries providing the largest portion of income. The bigger the markets to the bigger the profits. We are talking about the U.S., Germany. These are the top markets for us. Asia is a very interesting possibility. We believe we could increase our footprint in this market. We are trying to do it, of course. So that is the essence of the answer to this question. But the most profitable countries have the biggest share in our portfolio. But we believe Asia is a very attractive market for us, and we can achieve a lot in this part of the world. When do you suppose Wings of Heroes will be ready to attract more marketing spending? I would have to venture a guess.
Powiem tak, no mamy bardzo jasną roadmapę. The roadmap for us is very clear. Jakby spojrzeć te features, jeżeli chodzi o live ops, czy już później same opcje mogą nas zaskoczyć. Can bring a very positive surprise. But we believe this can happen only in the third iteration, 3-6 months, once these features have been launched. Unfortunately, wszystko w nich not everything is clear about the features from the very start. Dają graczom to, czego oni by oczekiwali. Sometimes they bring a pleasant surprise. We are trying to foresee what's going to happen. However, it's like reading in somebody's mind. We don't know what's going to happen. Chcielibyśmy zobaczyć jeszcze w tym roku poprawę Wings of Heroes. We would like to improve Wings of Heroes this year. We believe this can be done. But if it's going to happen, well, that remains to be seen.
If I knew the future, I would play a lottery every day. But that's how it is. I believe we have addressed all the questions raised. To wygląda na to, że wyczerpały się. If you have any additional questions, do not hesitate to ask them. You can send us an email. Send them to my email. The email of our department will try to answer all of your questions. Thank you very much for being with us.