Welcome, everyone. If we may start with the highlights of today's presentation. First of all, our post lockdown performance, we're dealing with the reality. In general, the performance was in line with our expectations with the exception of June, where we saw the disengagement of our players, which is in line with what we hear from other players in the industry, but also combined with the completeness of transition of our teams in Fish and Glass, in particular. And then July is back on track, and we see good performance in August as well.
Very good news on Fishing Clash. For China, Anna will develop, but we have strong early days and the performance is to our satisfaction. And the 3rd pillar was we are focused on the Rockwell's acquisition. Early days, we'll give you an update on how how we're doing with the transition and combination of the businesses.
Okay. So let's start with fishing Entering China news. This is something we've been waiting for a while. I will not discuss the history. I would rather focus on our current situation, the plans for the nearest future.
I think that's the part that is the most interesting one for everyone here. Period. So basically, we were granted with a license to distribute fishing trash in China in the last days of performance. June. And then we started preparing the team, the team that is based here in Rotzwag, but is strongly cooperating with Our publisher, Natis, based in Shanghai in China.
We have increased the number of people being responsible for the with a stronger focus on live ops, content generation, new features, deployment. Team. The team is based here in Brothof, as I said. It's almost 20 people working with Fishing Plus China now, and it will be only growing. The The most important part of it is that we have reopened the game to iOS players on App Store and Android players through The distribution platform of Net is on Android in mid July with a new update of the game.
That was the first update of the game deployed to the platform since late 2019, since we were in the waiting list back in 2019. That means that we reopened in app opportunities, so payment opportunity in the game, and we started generating the profit since mid July. We are very happy with the early performance of the game, but we need to remember that it's a very early performance of the game. So we have a history of over 1 month only, but the first data is very pleasing. It's beyond our expectations, also beyond the expectations of our partner.
That means that China is becoming one of our strongest geos when compared to Fishing Clash Global, let's say. Period. So it's in top 5 of our geos, and it will be only growing. It's obviously because of the potential of the market. It's the biggest gaming mobile gaming market in the world right now.
So the other thing about Fishing Clash in China is that period. We believe in a great potential of the game also because sports games in China are becoming more and more popular recently. Program. Also, we are among a group of 6 titles being published by NetEase this year that are very strong IPs. So our partner also believes in us.
That is Diablo Marvel, Pokemon, Sufficient Clash is among the biggest titles. The plan for the future is now to generate the content To accelerate the pace of adding new features, of adding new live ops and gathering more data, building the model and also investing more and more into marketing. Our partner has already started investing into marketing and went beyond the expectations and our agreements when it comes to budgets being spent on the marketing of the title, and we will be only growing in the next few weeks. The next step is to introduce Fishing Clash to Android stores in China. We are building a business We are applying.
We are discussing with the partners. Net is here doing that for us. So soon, in a couple of weeks, we should become a part of a couple of Android stores in China as well. So I think that's all for today when it comes to Chinese entry.
Okay. Rortus, process. Just wanted to report on the progress of integration. First of all, we have completed the integration plan, so we know exactly what we're doing. Airline commander, one of the main products of Rotos has been transited to Vorosil based team, and we're very about it because this is the fastest way of deploying these, you know how into one of the platform products of Rotos.
Period, that is moving according to our expectations. We've plugged in the business intelligence tool set of TSG and marketing falls into Rotos games. And one thing which is ongoing, the team of Rotos is focused on the remainder of portfolio but also on the new exciting product, which is Warplanes Game Boy, that we'll cover that later. And then the things that we'll be focusing over the next 180 days is to try to deliver fully transfer of our know how and actually cooperation between the platforms, we will dig into the data of Reuters at much larger scale. We've plugged in the systems that we will start digging.
We are plugging in a full set of all the tools that we have that's going to happen over the next few months. We will very soon start the user acquisition campaigns with Rotos products, some of the Rotos products. And that's something that's important. You might not remember, but in Ourotoz is fully organic company, so they never used any significant user acquisition to date. And then we're doing a lot of work trying to connect everything all in all how we have.
So that includes customer support and game localization. And from our perspective, one of the products, Airline Commander, as a product, we'll develop team around. So we have a team of few people and working on it will move into several team members over the next 6 to 12 months.
Period. Okay. So a few words on fish and cash performance. So let's look at it from bookings and marketing expenses perspective. So here we would like to focus mostly on solid marketing spend that has been generated, has been spent during the last few months, that means that the performance is solid, and we are able to keep the marketing expenses On a pretty high level, the level that was not experienced by us before the first wave of COVID when we started increasing our marketing expense drastically.
Performance? We've seen a decrease of bookings that is connected to the, let's say, technical and natural time of cohorts in time, but we've seen also that keeping marketing expenses stable, Not increasing marketing spend also led to increased bookings in July. So we treat it as a rebound and we see Our new features, new content generated in the game to start bringing good results, and we expect that to continue in the following weeks.
So regarding this trajectory of bookings and fishing clash, we mentioned in the last conference call that the COVID bump helped us grow faster. We gained we accelerated by around 18 months of time. Period. On this chart, you can see that the thin pink line shows where we would be if we haven't pumped up the marketing budgets last year. And the red line is actual bookings.
What we meant by this is that the way the cohorts behave, the way the old cohorts behave creates this muscle that basically increases every month, and this muscle will perform pretty well in the upcoming months years. And before the red line will be on the same level as the light pink line. We should see the bounce back. And this is what actually occurred in July. The August is also on the good trajectory.
And if we look at the things that happened in the Fishing Clash game in the last few months' time. We see that a lot of positive things. We said that we focused is on bumping up the production capacity, which already happened. We have 2 full feature production streams that are working on new features. They can handle bigger features in the future and now, which is a very good sign.
Also, we improved a lot the game in technological aspects. We shortened the loading time recently. We've already seen the correlated KPIs increase conversion rates and basically game loading time and smaller channel players and our top engaged players. And this elevated player base is staying within the game and will contribute to the bookings in the future quarters. From the negative side, we saw a small drop in the end of June on player engagement, but it was seen also across our old portfolio.
Period, it was basically correlated with the holiday season in Poland, in Europe and in U. S. But we saw a nice comeback of the players in July. So we believe it was just a temporary thing. And also we are adjusting to the iOS 14.5.
There was some turbulence, but so far, we are super happy with our marketing campaigns in Fishing Clash.
Period. Let me move to Hunting Clash and its performance. Again, let's look at Hunting from bookings and marketing expenses perspective, I think the story here is pretty similar to the Fishing Clash one that is Also confirming what Wojtek just said about June being worse in the gaming industry in general and July being a rebound for most of the games in our portfolio, but also in the industry. And the bookings Growth in July was driven by a successful launch of new content and new features. Obviously, we will be now only Generating profits in future coming from cohorts being attributed to the game in the last months.
And performance? Yes. When it comes to marketing expenses, the story again is pretty similar to Fishing Clash, but now on slightly different level. So as you know, we apply smart growing strategies. So we buy with some high level of profitability, and we will not stay profitable.
That's why we are not We are buying at some accepted level, and we agreed to continue buying on some solid, stable levels, so that's why you've seen pretty similar monthly marketing budgets for hunting clash and for fishing clash over the last few months. But I think the best message coming from this slide and from this part of the presentation is that Hunt in Clash had performance is the best month ever in July in terms of bookings. So that's what we always say about the muscles being built period that the cohorts we are attributing to the game that we are bringing to the game, both organically and through paid user acquisition, It's like a building muscle and the time when it performs well comes and this is the time when we started generating much better performance in the game. So we are really glad to see Hunting Clash is growing quickly again. Program.
The game is already contributing to the profit. We've been discussing that already during the last presentation. And what's coming next is the extensive Next 18 months of road map of new features and content coming and
Yes. So basically, If we compare games side by side, hunting clash to the fishing clash, we can see that hunting clash is around 40% ready. So there is still a 60% of things to be done in Fishing Clash just to be on par to the older, let's say, brother as it is right now. So the road map is pretty extensive. We have a lot of big features on that.
We also increased the capacity. We have 2 production feature production streams in hunting flash. Period. What does it mean? It means that we should produce those features faster and of much better and higher quality.
Period. And basically, the journey with Hunting Clash just plan. So we are focused on the live ops, on the features. We are also gathering a lot feedback from the players, we are also tailoring this game to the particular hunting clash players' needs. Period.
So there's a lot of things to be done, and we are of high spirits, and we know how to deliver that. Performance. And if we look at our older titles, Wild Hunt and Less Fish, period. Again, we could see a stable high level of bookings in WhiteHound and Let's Fish. Period.
We saw a small decline in Q2, but again, we see it as very correlated with the holiday season. Period. What's more important, we saw if we compare last 12 months to the previous 12 months, we could see even a nice small growth. Program. The team is working on constant content delivery.
We are working on iOS version and Android version of of Let's Fish doing some refreshing of the UX and UI and we are pretty happy with those titles. We know how to monetize those games. Let's Fish is already 9 years old and it's still in its prime time. And Our goal in Ten Square Games was always to diversify our revenue streams. And basically, if we look at Q2 2020, where we were, let's say, 93% dependent on fishing clash.
Right now, after of 12 months, we basically succeeded. Fishing Clash is only responsible for 74% of the bookings in the last quarter, where hunting clash is is growing and it's around 20% right now. And also, if we hypothetically add Reuters to that pie chart, we can see that the diversification is even bigger. And of course, with improvements of the titles with new games that are being released soon. And in the next year, we believe that this diversification will be even bigger.
So to sum up what we have currently in our production pipeline, we want to provide you a small brief about profile, what title is being done, where it is being done and when we plan for the soft launch. So, Un debt Clash, right now, it's in the production phase. We are preparing the, let's say, vertical slice that will be available in November. Period. By vertical slice, we mean kind of a game with the most crucial, let's say, features, but in a super plain and basic version just to get the first KPIs from the market.
After that, let's say, that kind of technical launch, period, we then take the game down from the shop and then we work until we are ready for the soft launch. The soft launch is the phase where we will have more features, is more crucial with a much bigger depth and also much more content for the players, so we can test the mid game and long term engagement of those players. Period. So for un debt clash, we are planning the vertical slice by the end of this year and probably November and the soft launch in the first half of twenty twenty two. For the Football Elite, we are planning the soft launch later this year, program, again, probably November or December.
It depends on how the things will go with the production team. Performance. If we talk about Project Verne, it was our simulator simulation with Clash meta game. We did a lot of prototypes. We created a a lot of market research, customer insight, we decided to put those resources into the Airline Commander.
And basically, right now, we have a very good game that is already on the market with a lot of players. And what we want to do, we want to do all the things that we were testing in the prototypes implemented that in the game. We have some very strong hypothesis and we believe that this might be a very nice project. So even if the game is not a fresh game, I would say. It's not a new game because it's already on the market.
We, let's say, started Phase 2 of the production, we'll be working with this game as kind of a new game, but also we'll be very we'll put a lot of focus on the live ops and a lot of features that we want to add. The next title, it's Warplanes. It's coming straight from the Roto Studios. The game is almost ready for the soft launch. There are like small bits and pieces that are missing.
A lot of connected with connection to the data systems, to our data systems, to our other tools that we have in Ten Square Games. Program. It's going to be a military flight simulator, 5v5 online dogfighting. And yes, we will soft launch it very soon. And then we have 2 other projects that are currently being produced in Warsaw.
1 is going to have the vertical slice test later this year and the soft launch earlier next year. And the Project Osaka, it's right now in its very early preproduction phase and it will have the soft launch later next year.
All right. Now let's spend a few minutes on discussing the financials of the company. So as was previously performance discussed by Wouter Hennana regarding revenues this quarter and 1st half was dominated by Fishing Clash and Hunting Clash. As for Fishing Clash, lockdown in marketing in Q2 2021 amounted to €25,000,000 as worthwhile period. In Q2 of 2020, it was about €75,000,000 And obviously, we've seen performance had a slow decline in revenues, which is quite normal as some of the players that we acquired in 2020 has stopped playing the game.
Obviously, lots of players still play the game and will keep on playing in the future. Performance. In July, we've seen the rebound, also mentioned before, in Fishing Clash revenues by 17%. Period. As for Hunting Clash, the revenues in Q2 were growing with July sales of 11,500,000 as water being the record high so far.
Profile. As Hunting Clash is gaining on importance in our product mix and Hunting Clash has majority of the players in North America, Hence, in the total GeoMx, North America is up from 42% last year to 44% right now. And as for the product by mix, press. As mentioned before, Fishing Clash is now about 74% of our revenues, while Our bookings while hunting clash is now at 20%. As for the expenses, business.
As you see on the left chart, we have an increase in operating expenses in Q2, and there are a couple of reasons for that. The major reason is that last quarter, period. We face some one off costs relating to transactions, meaning the cost of acquisition or advisory costs relating to pre acquisition of Frotus as well as the costs of strategic options review, which has been undergoing that is in total 1,100,000. Period. Additionally, as we mentioned before, we've been recruiting quite actively this year, and our external advisory recruitment costs amounted to approximately ZAR850 1,000,000, which is up by over 600,000 comparing to Q1.
Furthermore, we also had increased profile? In staff of the general and administrative teams, such as Business Intelligence, HR, Finance Administration, pressure, which contributed extra NOK 400,000 to our costs. And last but not least, In Q2, we presented the cost of our customer service department of 800,000 vorte mistakenly in the G and A cost They should have been presented in selling costs, so apologies for that. Obviously, this has no impact on EBITDA or net profit, but the G and A Sorry, let's say, over inflated. Taking all these one offs into account, our run rate for the G and A cost is slightly above SEK 5,000,000 per quarter.
Regarding the selling costs, so the right chart, performance. We've seen an increase here from 56% as a percentage of bookings to 59%, which is press, which is obviously related with the fact that Hunting Clash is gaining on its importance. And as it is a early stage game, it is not yet highly profitable. Our contribution margin on Hunting Clash pressure. In H1, 2021, it was 5,000,000 water.
So comparing to fishing class, these are still performance? Small amounts of margin. As for our financial performance as reflected by adjusted EBITDA or net profit. So there are a couple of reasons For the decrease in EBITDA from 38% to 30% or slightly above 30% this quarter. First of all, already mentioned increase in hunting clash performance means that this game generates is not such high margins as Fishing Clash.
2nd of all, the payments in Fishing Clash itself in Q2 were lower than in Q1. Therefore, this game contributed approximately $15,000,000 less gross margin to the at our margin as compared to Q1. Period. And as we were previously communicating, this year is, for this year of investment in the future growth, meaning we've been hiring quite intensively specialists from various fields in gaming industry. So that obviously has a short term negative impact on our profitability.
Period. As for net profit, this, let's say, behaves in part with adjusted for EBITDA, there's one thing I would like to mention that is not reflected in just EBITDA. That is write off of the Gulf of Real costs. So as we communicated in our financial statements, in Q2, we wrote off the cost of development of the Gulf of Royal, which were approximately 3,800,000. This was a game that was quite challenging to produce.
It was a complex game performance? With complex graphics, with complex physics, with complex animation, so technically more complex game than, for example, in Fishing Clash. Press. The cost of producing this game were relatively high, and the team has been producing it for approximately 18 months. Now let's have a look at our cash flows And balance sheet structure, our operating cash flows were up by approximately PLN8 1,000,000 as compared to the previous quarter.
However, if we compare it with the previous year, there's a shift in payment of dividend that, performance. Let's say, it's worth taking account in making a comparison. Namely, in 2020, we paid the dividend in June, while This year, the 2020 dividend was only paid in July. Period. All in all, at the end of June, we had an, I would say, extremely healthy balance sheet with cash amounting to approximately 80% of assets and no external debt.
Period. And the final slide from the financial performance section, sort of summary So we keep on being a very high profitable company. We've adjusted EBITDA conversion to free cash flow from operations at the level of above 120%. Time for strategic review. Okay.
Just to remind everyone on our journey over the last 12 months. In Q2 last year, we said we'll come up with a new strategy, which was about building further chances to diversify period and if you look at some of the KPIs, looking at the LTM numbers, the business is twice as big as it was a year ago. When you look at the concentration of fishing class, which is cash point for our company, we moved from 93% to 72% if you take into account Rotos. Period, we were starting the year with 1.5 studios with Wroclaw and Warsaw being started. We now have 5 locations, and we're very concentrated of building organic business around those studios.
We had 7 games that we operated or in progress of building, we're now having 11 titles which are in our control. And the team size. At the back of success of Fishing Clash, in Q2 last year, we decided to scale up the business. Was 175 people. We are now 386.
And as we said before, we'll continue to invest for the future of TSG. Period. By the year end, we're planning to have it around 500 people. And the next year will be the year we'll be very focused on delivering on all the initiatives we've taken so far over the last several months. Period.
The key current focus that we have in the business is obviously fishing clash and hunting clash, our 2 main products. So this is where we are really, we're working hard as we are reporting over the last 6 months. We've done a lot of investment in the teams, and we're now waiting for the results to come up. Fishing class China is obviously, I think that we spend a lot of time, Anna and the team, trying to build a presence there. We now need to concentrate on delivering the right KPIs and performance in China.
And the road to see a super exciting opportunity for all of us, so our colleagues in Verona but also the Wroclaw team and the wider TSR team, so we're focusing on that. And then obviously, not forgetting about the organic work we have to do in Wroclaw, Forsyth and Berlin very soon in terms of building new games. Period. And then the last thing which kept us busy in Q2 is strategic options review, which is in progress, and it's in line with our expectations as to the timing of that process. And just to recap on our strategy.
So Wroclaw is continuing the journey we described, so fishing clash, hunting clash, the clash genre. We're also adding simulation segment. So instead of Project Verna, we're building Airline Commander, and we're trying to make an trajectory into sports segment. So that's the concentration of Wroclaw on the spokes. Warsaw is fully operational.
Profiling is in a heavy recruitment phase. So we're coming to go for talent and thinking about the new game for that team. Book. Bucharest is our office where we gathered the talent and it's working that talent is working with other teams that we have at DSG. And the final thing, the first step in M and A with Reuters acquisition plus very interesting class of Sisu, process, which is a fund we invested in to see the early stage game development.
Our take on M and A is we now need to deliver on the acquisition, we're very focused on that, but we are actively reviewing opportunities and we'll move into new transactions if we find is something really, really interesting. So I guess that's it from us, Bartek, Investors Calendar.
Period. Yes. So during the next few months, there were quite a lot of events. Period. Unfortunately, all of them are virtual, but you can see the schedule where we will be available.
So September 2 in October. Then in October, there will be sorry, in November, there will be big news flow from us, Meaning, Q3 financial results and sales report.
Period.
Yes, that's it. So I think we can proceed to Q and A session. As I've written here on the chart, you can ask questions And we will answer them. So let's start with questions that were asked first. 2Q results Seem to confirm outperformance versus peers, Zynga or Steel Front.
Should we still be worried about the impact of IDFA changes in next month Or is it over?
I think this question is more complex than Ios 14 only and privacy policy. We need to remember that we are period. Our strategy is to bring new players to the game coming from different channels organic. Like for example, last month, we had 2 strong featureings for hunting clash and fishing clash on Android platform, also a nice feature ink on iOS for fishing clash. And the other thing is bringing high quality traffic through paid acquisition.
But here again, period. We feel pretty solid. We've seen the increase of the cost of user acquisition on both iOS and Android starting from March, it was pretty stable. Then until June July on Android, we've seen a nice decrease of CPI coming from CPM, decrease on Android in late July, in the beginning of August. So We feel pretty solid here.
When it comes to iOS market, we've seen an increase in period. CPI, CPM and also a decrease of marketing efficiency among the industry. Also, when we look at peers, starting from March with another wave in May June. But again, we see a decrease of CPI again. So period.
We are on a good track, we believe, but we need to remember that the industry is divided. It's not that everyone is is producing the same game. So I guess, what in privacy, the marketing strategy is different, like difference between the companies. So I cannot say for the whole industry, I cannot compare us to ZINGAL, to Steel Front, which portfolios are full of completely different games with, period, let's say, focus on different geos. And we like focus on iOS, more on Android, Etcetera.
So I don't want to, let's say, compare and answer this question for the peers. I can say that from our perspective, we've seen a decrease in profile. CPI, we've seen strong performance of our new cohorts, so we are pretty optimistic about the future. The fact is that we decreased our marketing spend on iOS. We've been preparing, we've been adjusting, we've been working on high profitable optimization.
That's the core of our activities. We don't want to go down with profitabilities of our marketing expenses, but we need to remember that we are also discussing and introducing completely new forms of period. Marketing here in 10 Square Games, we are working with not only paid user acquisition or organics coming from collections and in store sections, but we are also working with influencer marketing. We've been doing that and getting more and more experience coming from that during the last few months. We are working with more Brand marketing activities, we are working on cross promotion and virality.
Now having more games being pretty similar to each When it comes to the audience, we can introduce completely new forms of user acquisition to the titles. So we are trying to diversify also the channels of Bringing users to our games. But again, obviously, the iOS 14 and the changes to the privacy The policy or some talks and announcements from Google coming to the industry from time to time are only a part of this situation, let's say. So I wouldn't just limit this answer to IAS 14, but I will maybe not continue because I could discuss it for the next few hours also about the COVID effect, etcetera, etcetera. So I will just leave it Here, if you agree.
Yes. Just to recap on that Q2 performance versus peers, we observed a large universe of players. And I think we as we analyze it, we've done well in general and according with our expectations with the exception of June, as we mentioned, were those couple of disruptions, 1 internal, 1 external, which is the market performance. So other than that, the performance is what we expected it to be running our internal models. So that's a good thing to have.
Period.
Thank you. Another question. Could you comment on differences in user acquisition payback period between hunting clash and fishing Is it materially shorter in case of hunting clash?
So first of all, that's why it's such hunting clash is a game that is Only or already 40% of Fishing Clash. So obviously, we don't have the same amount of content features. Period, the game is much younger than Fishing Clash. So it's not easy to compare these titles. So payback periods are also linked to 2 factors.
So first of all, there's the performance of the game itself, new features, new content, etcetera, etcetera. On the other hand, it's related to the cost of use acquisition
and the marketing strategy. And our approach to both of
the titles has always been to learn practices from fishing clash and try to replicate them in hunting clash and other way around. But on the other hand, we try to treat both titles separately. So we have Like the same framework, but we are trying to focus on goals being dedicated to different titles. So I don't think comparing this way, Fishing Clash to Hunting Clash, has a sense, to be honest. So obviously, Fishing Clash is a game with longer history.
So the models work differently for For Fishing Clash and for Hunting Clash, that's what we were saying during the last conference already. So there are some differences to the payback periods for both of the games, but we are satisfied with both. And we are adjusting our strategy separately on this lower, more granular level to hunting clash separately than to fishing clash. So I think that will be my answer to this question. I don't know if my colleagues want to add something or Yes.
Okay. Thank you. Are you able to provide more details about the agreement with NetEase For distribution of fishing clash, what part of royalties goes to Chinese company? Not really because it's very confidential.
For me to answer I think, but I would like to give you an insight into how it works. As you just said, we are not able to disclose the details Of the deal, that's the agreement with NetEase, with our partner we have. We need to remember that we have a partner. We are under an agreement, so we cannot do things that are not capable for the partner or for the industry, but we can say that the structure of the deal is that Tenscore Games is being responsible for maintaining the team. So we are building the team, maintaining the game, bringing new features.
We are responsible for cost coming from, perspective? Let's say maintaining the product. On the other hand, the publisher is responsible for everything around, for business, for marketing. So we are not affected with used acquisition costs, for example. So we are having an impact on that.
There is a regular revenue share deal between us, But we need to remember that what we are generating then is our profit. So in contrary to the other markets we are working with, we are not affected with Use acquisition costs. So that's the difference, let's say, and that's the structure of the deal.
Yes. And I think program, you obviously, investors will get a better visibility on how it looks. But also one thing to mention that deal, the way it's calculated, press, it has variable elements. So it's not easy to give one number at this point in time. That depends on the mix of channels.
Profile. Exactly, exactly. I think that's a very important part. I'm sorry for not mentioning it before, but we need to remember that our deal in China in general, the market in China is based on 3 different elements, let's say. So there is an App Store and iOS market.
We are there already. There is an Android distribution platform of our partner NetEase due to the fact that Android stores are extremely fragmented in China. And the third part of the deal is entering Android stores. And there are different channel fees. There are different costs coming from 3 of those channels.
So let's say that the payback, the revenue Sure. Deal will change with time depending on different channel fees, Different channel flows, the number of installs coming from different platforms and channels and the revenue and bookings being generated
Thank you. Coming back to China. Do you think that the current tense situation between China and Tencent may have a negative impact on your plans for fishing clash in Chinese market.
We are not partners with Tencent. We would not I'd like to comment on that. Our partner is NetEase. And obviously, we observe the situation in China. We try to be up to date and do our best
Could you please provide guidance on further advisory costs in 3rd quarter?
I think the 3rd quarter advisory fees will depend on the outcome of the strategic options review process, and I think we should stop here because it may be really a different number depending on the outcome. So we won't provide any guidance.
Okay. Thank you. During May's investor call, you told us to expect 6 to 9 months Flat decreasing revenue for fishing crush. Could you give some update on this?
Okay. So as As we showed on our chart, we believe that we are in the stabilization phase right now and we should be back to growth pretty soon. It all depends, of course, on many factors. But if nothing changes, Then yes, as I just said, we should be pretty stable. The variance should be pretty low and we should see the growth pretty, pretty soon.
Thank you. It seems that you boosted your marketing efforts for Fishing Clash in August. Does it mean the ad market got improved?
I I think I have already partly at least answered that question. We will be reporting our August results in future, so I don't want to go into details. But yes, we do see performance, a nice, let's say, opportunity business opportunity coming from decreased marketing costs, but it's both reason and effect in the Same time. So we are also starting new activities that are helping us in widening our marketing approach, and that's also connected to that. So you will see The results, hopefully
soon. Thank you. Could you give us some update on the current ad market, prices targeting Apple privacy? I think we've already discussed that. How many devs do you plan?
I can maybe only add that we've seen a nice adoption rate. So we can say that From iOS 14 plus right, because now we have 14.7 OS already. And from privacy policy perspective, we see that the that became iOS 14 plus The adoption rate on the market and also in 10 Square Games is more than 80 5%. So we see we are there and we can say that the world is highest, but in class already. That's definitely something we can confirm.
Period. Thank you. How many devs do you plan to hire until end of 2021?
As many as we wanted to hire versus our hiring plan. So we said we expect to be at around 500 people that includes obviously developers across the value chain, but it's a moving target for us.
Thank you. This one, I don't know if we will be able to answer fully. What are the stages of the ongoing strategic options review. At what stage are you now? Do you observe high interest from investors?
And when will the review terminate?
Yes, I think I we don't want to comment on the dynamics of that process. We bound by agreements, and I think period, we should just carry on. The one thing I wanted to say is that the process is carried on in the the kind of time line that we expected it to be carried on. So that's all we can say at this moment.
Period. Do you intend to further expand your teams abroad due to planned changes in tax law in Poland, Polish deal, B2B contracts with health insurance fees.
No, we don't have such plans would be a short answer. We the way we build the presence of DSG is following the talent, there's talent in Poland, and we carry on with that talent. And obviously, we carry on with the investments outside of Poland, but that's in line with our strategic planning rather than this being driven by tax strategic planning rather than this being driven by tax regulations in Poland.
What should we expect primarily from hunting clash in the second half, improvement in margins or growth?
So maybe I'll tell you from the game perspective, from the product perspective, we still have profile? More than 60% to do, let's say. And we have also a lot of new ideas that are coming up to the game designers and the product owners' mind, which we will be testing. So we are still focusing on creating better and better product every day, every week. And this is going to last for many years to come.
So this is our area of focus. So we want to create as good game as possible as to perform as good as possible. And according to that, we can scale up the marketing and create an evergreen product, yes? This is our goal.
Period. Yes. So we will be just following the growth smart growing strategy as we did during the last 3 years for Fishing Clash and what we already started a couple of months ago for Hunting Clash. So I think there is a space for growth for the title and we will be only Pushing it further and trying to deliver the best possible results, looking at the market opportunity and the product being improved with time. Program.
Yes. And strategically, I think we said it a few times, we believe this could be a big product. It's not done and we'll the way it works, It's a live game. It's a live operation. We'll continue to invest.
We have ideas with the view that this product can be big. If you wanted to ask the question how big it's going to be, The answer is we don't know yet. We'll find out in the future.
If you look, this game is still pretty young, yes? This game is not it's going to have the 1st year soon, but it's still a 1 year old game. So it's super young for the free to play industry.
Period. Thank you. Another question for update on strategic options review. We've already discussed that. And the next one, can you share if you already started share buyback?
No, we haven't. We would have to disclose that. That would be public information if we did. And now on to questions in Polish. This one was already answered about hunting clash, whether it's still building profitability or growth, we've just answered that.
What revenue and what profits did the Reuters have in the 2nd quarter?
Period. We will not disclose that. We'll start reporting Reuters with Q3. But the if you wanted to do a little bit of population, I think the revenue of Roethurst was annual revenue of around €5,900,000 and there's not much of a seasonality in the business, if you like.
Okay. Thank And I think that's it for now because there is another question about strategic options review, how many investors, etcetera. We cannot answer that, sorry. So I think that's it. We have answered all questions that were sent to us.
Yes. Thank you very much.
Okay. Thank you very much and we'll see you in few months. Thank you.
Thank you.
Thank you.