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Earnings Call Analysis
Summary
Q3-2022
In Q3, Ten Square Games reported a 23% growth in EBITDA, driven by strong bookings for Fishing Clash and Hunting Clash, both increasing by 5% and 30% respectively. October continued this trend with a 6% month-over-month revenue rise. New features and effective marketing strategies fueled user acquisition, boosting active users by 38%. The recent launch of Wings of Heroes has quickly become a significant revenue contributor, adding to the company’s portfolio diversification. Management remains optimistic about navigating the challenging macroeconomic environment while focusing on profitability and margin improvements across all titles.
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[ Audio Gap] Wojciech Gattner, Chief Product Strategy. My name is Maciej Zuzalek, I'm the CEO of Ten Square. Okay. Let's start, as usually, with the Q3 highlights. What we've seen in Q3 is improved performance over Q2. So we've seen the growth of bookings across our all portfolio. So all our games grew versus Q2. And also, what we've seen with that growth of bookings, we've seen increased -- increasing profitability. So our EBITDA grew by 23%.
The very fundamental thing for us is the recovery of performance and growth of both Fishing Clash and Hunting Clash and actually Hunting Clash has done quite significant step up, very good news behind this growth of the two titles is most of that growth is driven by a combination of product improvements and also good marketing. We'll talk about it a bit more.
The third highlight of the quarter is we had a few products in the pipeline, the one produced by our Italian studio RORTOS, Wings of Heroes in just the first month from launch has become the third largest product of TSG in terms of daily revenue. Early days, but we -- it's good to have another significant portfolio asset in our gaming portfolio.
And all this is happening in quite unstable macroeconomic environment. We're seeing it. We think this environment will stay with us for a while. And the things we are focusing on is to navigate through turbulent times.
Okay. So typically, let me invite you to the deep dive into the current performance of our two live and fully maintained titles, so Fishing Clash and Hunting Clash. Let's start with Fishing Clash. After seeing some downtrend in May, we went into a very stable bookings level of circa PLN 30 million monthly. It started in June. It was followed by increased marketing spend, especially in July and August, typically very good months for our outdoor games due to some seasonality. We've seen also before. It has all led to a 5% increase in bookings in the third quarter when compared to the second quarter of this year, and it is followed with good performance of October, which also reported increase of 6% of month-on-month revenue and bookings. The revenue increase was strictly connected to a good performance of the title, introducing new features, also more frequent introduction of content.
So content drops that were coming to the game more often and they were successful like live-ops operations, et cetera. And it also resulted in a highly increased user acquisition spend, especially, as I said already in July and August, and it had an immediate impact on our monthly average users number. That increased by 38% between the second quarter and the third quarter, while in the same time, the average bookings per user were decreased only by 24%. So it was an instant influx of new installs. Actually, it was July and August. These were our record ones in terms of installs since January of this year.
So it was a big influx of new players, that's why we were able to increase our MAU more than keeping our ABPU stable, but these results are good, and we are happy. We are following with increased marketing spend in October and the plan is to continue as long as it brings profitability.
Now we are increasing -- now we are focusing on increasing our margins. We believe that new features deliver increasing product with increased user base of this 2.5 million active users will be followed by an increase in our margin.
Let's move to Hunting Clash. Hunting Clash, we are also performance regarding bookings in the game, that similarly to Fishing Clash achieved and kept increased levels starting from June and July. Similarly to Fishing Clash. We also started increasing our marketing spend for the title starting from June, July, August.
The increase of bookings between the second and the third quarter of this year was 30%. It was due to new features, more frequent content drop. So very similarly to what was happening in Fishing Clash. We also saw similar results in Hunting Clash.
Here, we decided to also increase the user acquisition spend, but you may see that the spend is not followed by the increase of MAU. It's also because of the structure of the traffic we are buying and delivering to the title. We are focusing on strong Tier 1 geos, which are slightly more expensive, but are also delivering an excellent value of our players. That's why we are also showing here that average bookings per users increased by 30% between the second and the third quarter, and this is something to focus on a lot because it's been the highest ABPU we have achieved for the title. And the plan is obviously to increase our marketing spend.
And similarly to Fishing Clash follow with increased margins, increased bookings for the title. The current focus now is similarly to Fishing Clash again on continuous growth, game development, delivering new features and more frequent content [ crops ] for the title. Thank you.
Okay. So let me update you on the RORTOS' performance. As we can see on the chart, the performance of the studio is growing. And despite all the headwinds like closing the Russian market, we are seeing the increased importance of the revenue stream from the Italian Studio.
Last month, we had a successful global launch of Wings of Heroes. The metrics that we had in the soft-launch phase where were confirmed during the global launch phase, which is very optimistic from our point of view. And we began scaling this title with the marketing. And I will tell you a little bit more shortly, what are our upcoming opportunities and challenges for that title.
Also, we continue the work on Airline Commander and Real Flight Simulator. In Airline Commander, we are introducing right now a long-awaited feature of live-ops, of course, there will be probably ups and downs because this is something very new to this genre, but we strongly believe it will have a very strong impact in the long term.
And regarding Wings of Heroes, so last month, we globally launched it. The first data kind of confirms that the LTV curve is looking very promising. It's above the curves of Fishing Clash and Hunting Clash during the first weeks of the global launch. The main challenges here to get that proper scale. So on one side, we can see like the product is good. The KPIs are solid, and we have quality KPIs. On the other side, we know that there's a long -- there's a lot of work in front of us to scale this title to increase the marketing budget to -- and basically to improve the product with new features.
The road map that we have for Wings of Heroes is for the next at least 12 months' time. There are a few vital features that are needed for this game. And so that's why we are very optimistic and very happy with the launch, and we are very happy with the quality of the product.
Other -- our ad productions. So let me talk a little bit about Undead Clash. So right now, we are testing the game on the U.S. market on a little bit bigger scale. We are trying different marketing and user acquisition efforts. We are targeting different type of players, and we are looking for the optimum combination between cost per new sale and LTVs. It's still an early phase. The KPIs that we have so far are okay, but we believe that we can improve them much more. And this is what we are doing right now in this -- during that phase, testing phase.
The most important thing is to add missing features and missing content. And basically, the team is working full steam right now. And we expect to give you updates in upcoming months regarding that product. And let me show you a short video clip taken from the game and the ad.
[Presentation]
I hope you enjoyed it. And now let's get to our second title in the production phase, which is Fishing Master. Fishing Master is not the next -- not the next, the third fishing game in our portfolio. Right now, we have the first external test, taking the first -- we are looking at the first KPIs from the real players. We are adjusting the road map towards those KPIs. But so far, we are also pretty optimistic about the testing phase. The aim of this title is to reach a little bit more casual players.
First, because we can see that there is a potential in that market in that niche. And then secondly, because we don't want to cannibalize our existing fishing portfolio games. And I believe that in a few months' time, around February, March, we'll have a very big update, which will give us a very good guidance and clear vision on what are the next steps with this project.
Now let me get to...
[indiscernible] movie.
Sorry. Yes, we also have a movie for that title. Let us present a short clip.
[Presentation]
And now let's get to the Gamesture portfolio and production pipeline. So basically, the Social Wars IP is growing. And the idea is that -- we want to add more product with the same Social Wars IP. The idea is to scale the whole portfolio of Social Wars, first, by product improvements and by adding more features to the existing titles.
The second is also by adding a new team or new teams and adding more products with different teams for different players, but with mainly the same flavor of the games. So far, the KPIs are very good. We are happy with the KPIs. Of course, the idea is to always to improve them. And this is like the constant iterative process.
So we look forward to new additions of new games by Gamesture by [ Gamesture ]. And also, we are looking for the improvements to the existing products. And we also are working on different scalability options like user acquisition channels and basically business as usual, yes. We are working on many different dimensions to improve the portfolio and grow the business. Thank you.
Next now a few words about our consolidated figures. So first of all, profit and loss. Some of our bookings increased by 11% quarter-over-quarter. It was mainly thanks to good performance of our core portfolio. In terms of user acquisition, we see higher costs in the third quarter, but we stood at an investment for next periods or next quarters. So we hope to monetize our user base in upcoming months.
SG&A, we see a decrease. It's mainly thanks to cost optimization, and we talked about this last quarter. So it's exactly this effect. And as a result, our adjusted EBITDA increase, resulted increase in the amount of -- in percentage, 23% quarter-over-quarter, really nice result, and we are happy how it looked like in the last quarter.
Next slide, please. On portfolio diversification, [indiscernible], more and more diversified, thanks to organic, I mean, Hunting Clash, but also thanks to inorganic initiatives, RORTOS portfolio, Wings of Heroes, et cetera. And we hope that in upcoming quarters will be further diversified, thanks to the next titles. And in terms of geography, of course, we are still very strong in Western market, America and Europe.
And cash flow, significant cash flow from operating activities. Every quarter, we generate cash, strong conversion ratio -- operating cash flow ratio amounting to 91% in third quarter. And we closed this quarter with cash balance approximately PLN 130 million, and I think it's really nice cash position, which allows us to plan the future and future invest in new titles, maybe in M&A. [ Audio Gap]
Many more so, we want to see this product coming through just to validate that part of hypothesis. And on the M&A front, I think we've made really nice progress over the last two years. We think we've made two investments and they are performing well. So that's good news. And what I wanted to say here is, obviously, we're finishing a certain cycle of development and decisions we've taken two years on how to develop the company. What we're planning to do is to come to you in early 2023 and talk more about what are the longer-term plans and strategy for TSG.
On the current focus, it really remains unchanged. We really need to focus. It's a lot of changes. We've been in the last nine months, we've been going down. We've been recovering. We've been struggling on user acquisition front. And there's been a lot of changes in different parts of our business. But it's one thing, the big lesson learned for us is we can really focus on what we can do and what's in our hands, and this is working with the product and finding new ways to find users for our games. And this is something we'll be continuing doing throughout the next quarters. Market is highly uncertain. It's very -- it's changing every week. Now we are trying to respond the best we can.
On pipeline, we've kind of Wings of Heroes, it's a good result. It's early days. There is a potential for the product, but there's also two other products that we need to deliver and test in the market, and that's going to happen over the next 3 to 4 months. And that will help us to define the way for TSG.
The last feat is M&A is not just about buying companies. We're very focused on helping our colleagues to share know-how we have at TSG developing our titles. And that's something we're working very hard on, while not stopping looking at and other opportunities. Our M&A team is now on the search meeting within other companies, there are interesting targets out there, but we are not by no means in any rush to do the next acquisition.
This year, you will have the chance to meet with the representatives of the company during Warsaw Stock Exchange Innovation Day on the 2nd of December. And on the 8th of December in Prague during WOOD's conference, the company will publish in early January 2023, it sales update for fourth quarter 2022 and... [ Audio Gap]
Thank to Flight Simulators, so that's really good to have a further area for growing. We have two games to finish in the next months, to test them with the market and will be coming back in March with an update on how we want to develop the company going forward.
So let's move to the Q&A session.
The first two questions come from Mr. Piotr Poniatowski. The first one regards tax paid in the third quarter 2022. Why is it that low?
Okay. I would say that it's not very good to only look at that one quarter because we calculated -- we calculated tariff cumulatively. And during this year, there was a lot of tenders, which reflected our tax position. Of course, we need to remember about -- at least our tax liability and tax assets, deferral tax assets and liabilities.
They have a big impact on tax position in P&L, and we have higher impact of disposition during this year than on the previous one and what's more during this year, there were some changes introduced in tax law, which also had influenced our calculations. The biggest one was in [ IP ] plus our tax are and the way of calculation of it's called Nexus from IP Box.
I think that the second question regarding the tax relates exactly to the answer already given, so I will skip it and let's move to another one.
Maximum amount of earn-out on RORTOS could reach up to EBITDA during July 2021, December 2025. Could you explain what -- on what depends the level value of earn-out toward RORTOS' EBITDA levels?
Well, it's EBITDA. There are some small -- more or less, it does EBITDA of RORTOS which will be paid as an earn-out.
Yes, maybe I can add. There will be some mechanics. This whole mechanism about how the earnout is constructed. There's quite some detail going into it. And I think it's part of our know-how, how we agree on paying earnout. So that's not something we share in public at this stage.
So I think that's also the question for the next question. In what circumstances you will need to pay max amount of earnout.
The next question, the results of which games are taken into account when calculating earnout RORTOS, what part of the results of Wings of Heroes is subject to payment to the former owners of RORTOS.
As an earnout is based on EBITDA levels. Therefore, all gains are included in this calculation.
The next question regards bonuses. Having in mind, you will not reach assumed EBITDA targets for 2022. Does it means you are not planning to pay any bonuses for TSG staff in 2022?
We have different levels of remunerations and types of bonuses within the company. And I think at the end of the year, we will review the performance of the company and decide on how this is going to land. Part of it is performance related, part of it is related to individual tasks. And we have quite advanced system around this. So it's very hard to answer in one sentence.
One more question regarding earnout payments. Are they made annually or in full after the end of 2025.
First time they are made for 11 -- for 18 months. So starting July 21 to December '22. And then it's made annually.
The next question is regards Wings of Heroes. What are your thoughts on the risk of killing, scaling down Wings of Heroes in the near future? Is it still substantial or it has significantly deteriorated post launch?
So no. So far, we don't see any signs of deterioration of how the new cohorts behave or the smaller, let's say, amount of registrations. Of course, there is always a bigger number of registration initially as we got featured by both platforms, Android, iOS. But so far, the performance of new cohorts is following the same path as the initial cohorts. Of course, we are monitoring how they will behave over the time. There is always this tendency that the older cohorts, the worst performance of them is if we don't have any changes to the product.
So that's why I wanted to emphasize that working with the game, with the data, improving the game is one of the most important things at this very moment. And I believe that we'll be working on the title for many months to come, yes. So far, we are very happy with the KPIs, and that's why we don't see well, we see little very little chances of killing that project, very, very little chance.
Thank you. The next question also regards Wings of Heroes. Some of the answers already were given, but there is one regarding user acquisition. I will read just the whole question, Wings of Heroes, is the company satisfied with the achieved KPIs of this product? What is the LTV in this game? Does the company intend to further increase user acquisition expenditure and scale this product in the coming months.
Yes, maybe I will jump to cover the user acquisition and marketing part. So yes, we are happy with early KPIs. Yes, we are into increasing the expenditure on both platforms. We will probably wait until January to increase more.
Obviously, we are observing the cost of user acquisition. It's not only about CPI, but also about the LTV and the value of our players in the game. We are really happy, but we are still working on the depth of the game, it's monetization. So we are observing. We are happy. We are increasing. The plan is to definitely focus on that more in the future. So we will have the third leg of user acquisition plan more for January and onward.
The next question regarding Wings of Heroes. What is the difference between Wings of Heroes and your core portfolio as Wings of Heroes dedicated for more hardcore players, could that result in harder scaling or smaller potential user base?
I wouldn't say that the Wings of Heroes is a little bit more hardcore players. It has -- actually, it has a specific niche, which is planes from second World War, and it actually might be kind of a niche. However, the gameplay is [ pretty universal ]. The way the players control the plans is very casual, yes.
So I wouldn't say that this game is only for the hardcore players. We are trying to accommodate all spectrum of the players that is out there. And of course, there will be some features which will be a little bit more for the hardcore players, but we also are planning adding the features like, for example, [ Battle Pass ], which are very, very casual and very simple to understand and very engageful.
I will add a small portion of the information coming from UA. We don't see -- we are acquiring only hardcore players or any signs of being in this niche in the future. We see it both in different creatives, we are testing. So we are able to deliver value and reach different groups of players.
We are also seeing the cost of user acquisition, which is not showing that these players are super niche, super hard core. So we are pretty satisfied with that. And we see that we can serve with the title to many segments of players, including more casual players as Wojciech just stated.
Maybe one more point of -- to notice is if you look at the World War II theme, and this is where Wings of Heroes belong with a quite unique game play. We don't have a game like this set in this setting. There's quite a lot of big titles related to World War II operated in both [ Free to Play ], but also in mobile segment. So I think there's nothing to tell us it couldn't scale up.
The next question regards one more time, earn-out liability. It increased from [ PLN 4.4 million to PLN 51.9 million ] year-over-year despite a strong increase in the discount rate. Is it due to the increase in the revenue forecast? What else?
It's not due to forecast update. It's mainly due to, I mean, interest part and also balance sheet revaluation. That's the main reason.
The next question regards Gamesture games. Can you tell us more about marketing campaigns in Gamesture games. Do current products show signs, appropriate KPIs to scale them?
Yes. So our cooperation with Gamesture regarding the marketing campaigns is here, of course, they are running the marketing companies, but we are discussing clear exchanging knowledge, we are sharing some KPIs supporting each other. We are seeing that Gamesture is spending solid marketing budgets on three of the titles from their portfolio. So nothing changes here. And so we will be probably ready to scale them. But our approach is similar to the one we always had in Ten Square Games, so smart growing.
So we see a trend to increase. We increase -- we want to wait for a moment as we do that. But we experiment a lot. We exchanged the knowledge from the other portfolio from Ten Square Games. So I think it's good to have a couple of titles that are live, so we can exchange benchmarks. And yes, we see signs that we may be into scaling the budgets smartly for Gamesture as well.
What is your strategy regarding marketing spend in November, December 2022?
So as always, I don't want to discuss future too much. Our approach is to scale smartly, but also the scale smartly. Our main goal is to search not only for volumes, but also profitability and margin. So that's what we are doing now. But I can say for sure that we are not planning to, I don't know, decrease significantly drastically or increase drastically.
We rather want to keep the solid level of our marketing spend for all the titles into our portfolio, and we've seen that trend for a while already, and we would like to continue that. We haven't seen much increase of the marketing costs we've seen, for example, in the market last year. And it's pretty common for all of our titles, which are in different phases of development, of course, also there are different rules connected to all of them. But I think we will be pretty solid when it comes to that.
But obviously, the end of the year shows that there are some featuring. There is a support from platforms. Fishing Clash as always, is included in some, in some collections. So we may decide to decrease slightly because we will be getting traffic coming from organic channels. But in general, we plan to keep our approach solid until something drastic happens, but we don't plan it.
Which title Fishing Clash or Hunting Clash is currently showing better opportunities for scaling up.
So basically, just given the age of the titles in regards of percentage-wise, we believe the Hunting Clash has a bigger chance of scaling up. However, the base of Fishing Clash is still very big, very nice. The ROIs are very good. So in terms of relative net revenue change, I would say they both have the same opportunities.
Yes. And I can add from a marketing perspective that we've seen continuous performance. Good performance of both titles. So I wouldn't like to be forced to choose any of them. We are looking at them separately. On the other hand, we are comparing the numbers, the benchmarks, but we have slightly different policies regarding the both, but we see a lot of space for scaling for both of the titles definitely.
The question about RORTOS. What was the RORTOS EBITDA in the third quarter 2022?
Well, we don't publish this in our financial statement. But to be honest, I just remember the number correctly. So with circa for the -- it was I think it was [ PLN 1.5 million ] for nine months of this year.
The next two questions, I will combine into one. They both regard Magical District. What criteria are taken into account on decision to relaunch [ kill on ] Magical District. If you kill Magical District, should we expect total write-off of PLN 9.2 million or you may use part of already built assets?
Okay. So the decision to suspend the development of Magical District was related to kind of our discussion with the team to prioritize, and we ended up with Fishing Master being a priority for the team. So that's how we arrive for the decision to spend Magical District. The way the product was developed, it gives us a lot of opportunity to twist and change in the future if you wanted to. And the decision on how we will come back or [ Eve ] will come back to this title is very strictly related with the performance of Fishing Masters.
And as we said, in Q1 this year, we'll be looking -- we'll be reviewing Fishing Masters and then jointly with the team will be discussing the possibility of development of Magical District and how we could and if we want to take it forward. So we have optionality and commenting on the potential outcomes. I think everything is possible. We may end up with a full write-off or we may decide to continue right off parts of it related to the part of the engine that we would use in the future.
And next question, is the company considering planning to start work on Fishing Clash 2? If yes, when could this happen?
If I may answer, maybe we have been planning for that since the launch of Fishing Clash 1 because we had a history of Let's Fish. So the moment will come. I don't think this is now the moment to comment on what and when will happen with Fishing Clash 2.
Next question in regards to Wings of Heroes. The game has been profitable in recent months. What are the reasons for relatively low marketing spend for Wings of Heroes recently? Do you plan to increase it soon?
So we want to be smart with this title. So we decided to launch the title in the fourth quarter of the year, which basically hasn't happened to us for a while. We all know that the cost of [ Heroes ] acquisition in the fourth quarter is relatively higher than the cost in the third quarter, for example. So we decided to offer the budgets, we believe can be spent super profitably. So this is what we are trying to do now.
We are trying to show that the product is delivering great value. And we are looking for a space to increase our marketing spend. We could do that already today, but the part of our agreement with our partner also is to wait until January to move forward with marketing spend to observe, to also work on bigger updates to the title. So we are like an aligned team between marketing and product and also between Ten Square Games and RORTOS, and we are planning to go for more so. So I would answer this question this way.
The next question, in which quarter do you expect globally -- to globally launch Undead Clash and in which Fishing Masters?
So our expectations are to launch them as soon as possible and as soon as we feel like the titles are ready for the market. Yes, the initial plan was to global launch it soon. However, we can see like there's a lot of work needed. And I cannot predict right now the exact date. However, this is our policy. We want to have the quality of the product and the KPIs that are optimistic. We have first to have to achieve them, and then we are globally launching that titles.
How many people currently work in the company? What level of recruitment will be optimal for company at the moment?
We are now at about 475 people in TSG Holding Company. And then there's about 100 people in RORTOS and Gamesture. And I think for what we see now is the opportunity and the task at hand is the team to carry on with it. But please remember, our job is to kind of review and navigate all the time. So we're looking at the resources required for today's development, potential future developments and all that. So I think the current shape of the company is what we're looking at as a base.
What are the company's current expectations for the Chinese market? Does the company hope to improve the monetization of the Fishing Clash from this destination?
Yes. So I think the most important regarding the Chinese market is that we are there already with Fishing Clash. Fishing Clash in China is not our major focus right now. It's a part of a bigger Fishing Clash global project. But every single change to Fishing Clash can be merged and is being merged Fishing Clash China project with time. So all the improvements, we are focusing on right now on the global version of the game, can and will be introduced to the Chinese version of the game.
So obviously, yes, we are still into improving the monetization of Fishing Clash in China. And I think we are just observing, waiting for a good moment, still discussing with the partner. But as I said, this is not the major focus we have right now regarding Fishing Clash. But as I said, the most important part of all of that is that we are there already. So we will have more and more chances to improve Fishing Clash in China.
And we are going back to Wings of Heroes. Are you going to scale up Wings of Heroes straightforward? Or do you see some areas for product improvement to be done before scaling? Could we expect a marketing halt like in the case of Airline Commander?
Well, basically, we are following the smart growing policy with that title as well. And the one component that we are missing with Wings of Heroes to go full steam with user acquisition is basically the data. Like, I mean, we have only a few months of data. We don't know how the LTV curves will shape in the upcoming months. This is like the biggest unknown in compared to our existing portfolio of titles here.
For Fishing Clash, Hunting Clash, we have lots of historic data, and we know how to predict the LTVs of the cohorts and then we can adjust in the most efficient way the budget. Here -- we are -- we have some risk in terms of that -- in terms of the predictability of the future. That's why we are a little bit more cautious. However, it doesn't mean that we are not optimistic.
When do you think you might start to define Wings of Heroes, as a growth game?
Basically, as I just said, the more data we have, the more we see how the cohorts behave, the more we see if the next cohorts will behave the same way as the first one. If we see how the marketing costs are scaling, if we reach some peak level or where we cannot scale more with the existing, let's say, title then we'll see what are the -- what's the possibilities of the Wings of Heroes. But so far, as we said, we are happy with the launch. We are happy with the first KPIs, and we are working hard on the product, and we are scaling the marketing as we also scaled our previous titles. The potential of the title is still unknown. However, we are optimistic.
Okay. So how do you compare the addressable market for Wings of Heroes and Fishing Clash, which one is bigger in terms of revenues?
It's also a very hard question to answer. When we launched Fishing Clash, the market of fishing games was around $2 million a month. If we would judge this -- it will be the only indicator of how big is the market, then we exceeded that number more than fivefold in our peak at the moment. So we can see like just looking at the market when there are no strong titles, it's not -- there is a lot of missing information.
As Maciej said before, Wings of Heroes, dog fighting game with World War II team, there is no such a title like that already there. So we cannot actually measure the market, in terms of how big it can potentially grow. So -- but I believe just looking at the number of registrations that we have initially from the organic sources. We believe there is -- there might be a big market out there.
And I would like to add something here. When we started with Fishing Clash, we were marketing the game as a fishing game then we were going into the simulation niche then we were discussing the outdoor [ hobby ] game then we were discussing sports games. So we are also those that are creating the environment for ourselves, and this is what we are doing for Wings of Heroes as well.
So we are trying to define the nation. We are trying to expand it. And we will continue doing that. We see the scale there, and we will definitely take the opportunity to go even beyond some, let's say, limits we may see right now.
During the presentation, there was a name of the game, Hero Legacy, is it a new game that the company intends to introduce to the market?
So Hero Legacy is -- I don't want to say a site project because it's a proper game done by Gamesture and under Gamesture structure, let's say. It's a project that is being developed, and we are looking at this project from different perspective as it's something that we don't want to evaluate from -- we don't want to evaluate right now. The KPIs of the projects are let's say, okay. However, there is a lot of things that are needed to be done before we start evaluating this project. It's -- I don't want to say it's an experimental project, but that's something that -- it's a game that it's not comparable to existing mobile games in general.
Yes. And what I would add is very much outside of the core on what Gamesture is focusing. It's a very interesting option value for Gamesture, but also for us, and it's nice development like this, one of the reasons we invested, but it's kind of -- it will need a lot of time to develop and test as Wojciech said, it's quite different in innovative for the market.
The next question, you didn't talk much about Fishing Clash China. What is the situation there?
I think I have partly answered this question. So as I said, this is not the major focus for Fishing Clash right now, but it doesn't mean that we don't cooperate with our partner with we do spend marketing budgets on the game. We are delivering new quality players to the title. We are deploying new content, new features to the game, we are merging with the global version of the game. But there are no highlight could focus on right now.
I would say we are waiting for more, and we will be continuing when we have something more to say regarding that. And I will just repeat what I said already. The most important part for us was to enter the market, and now we will have more and more chances to do something with that. And once it happens, we will be sharing this information with you guys.
Yes. Maybe I will ask what we said, I think, during the last quarter's presentation. When you look at Fishing Clash, China, this is the product that's been launched. It's an important strategic market, but it doesn't have as much impact as other things, we think, at the moment. looking at all the map of opportunities we have at TSG.
So it's not going to have in a short term, meaningful impact. And if you keep on asking, it's not happening for now, but we know we are not letting it. We're focusing on this market. We're doing a lot of experimentations working with the partner, and I will continue to do. If anything happens, comes out of it, we'll let you know anything meaningful.
The next question regards RORTOS. Does the company has the chance for stronger improvement of financial results despite Wings of Heroes. And the question regards Airline Commander and Real Flight Simulator.
As I said before, during the presentation, the development of those two products is ongoing. The RORTOS is working on Real Flight Simulator. They're adding -- they have a robust -- also robust road map for product improvement. There is a lot of female community involved in that update road map. For example, recently, we added a possibility of adding to Real Flight Simulator, community-created airports, which was amazing -- which was an amazing thing because the whole community started to create that airports, adding to that game. We can see like the community is very strong.
So we believe that based just on that core players and loyal customers and the product is very stable and solid and the constant improvements of that title will equal to the improvements in the revenue.
From Airline Commander, as I also said, we added live-ops to that title. This is the first week that players started playing that. We will be working a lot on iteration of those live ops. We want to see what's working, what's not working. There might be some up days, some down days. But overall, the production team, the product team has some full steam and more and more features will be added on in the upcoming months.
And after that, we will evaluate where -- what's the potential of the product? Should we -- should we invest -- continue investing those resources in the title? Or should we move the resources to other products also might be an option of helping RORTOS with new product development?
The next question regards on that, Clash, when do you plan the global launch?
So as I said before, the plan was to do it as usual as soon as possible. This is also our goal. However, as soon as possible, the possible means like when the product is ready. So in the perfect growth, it would be Q1 2023 at this very moment. However, I know that there's always some delays in the date. We had that also in the past. This is the nature of the business, and we cannot predict how the KPIs will behave. We have some expectations, what is going to move the needle. However, we only will know it when the new updates will come.
And the last question we received regards the interest from foreign investors. Has it increased likely. And we can observe from the agenda for the conference in Prague, that there is some new interest from foreign investors, and we will try to match the expectations of the investors. Thank you.
Okay. Since there's no more questions, thank you very much. We're going back to work, and we'll see you in 2023 to report on the full year outcome and the outlook for strategic development of TSG. Thank you very much.
Thank you.
Thank you.