The firm stated it can cease improvement of its ‘Undead Clash’ and ‘Fishing Masters’ initiatives and ebook a 14.3 million zloty write-down ($3.39 million) for the previous and a 11.4 million zloty write-down for the latter.
At 1025 GMT Ten Square Games shares have been down 4.8%, hitting the underside of Poland’s wig40 index.
“We have decided to end work on two projects – Undead Clash and Fishing Masters – and to significantly reduce employment in areas outside the company’s main products,” CEO Maciej Zuzalek stated in an announcement.
“This will allow us to focus Ten Square Games’ resources and energy on the development of the main titles – Fishing Clash and Hunting Clash – in the coming months, and prepare for the further scaling of Wings of Heroes.”
The firm will give a closing determine for the write-downs in its first-half report, after calculating the quantity of severance pay for layoffs. The video games write-downs might be included within the firm’s second-quarter outcomes.
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“The decision to take project write-downs and layoffs comes as a negative surprise to the market,” stated Erste Group analyst Piotr Bogusz in report revealed on Monday. “More than a month ago, TEN took a partial write-down of expenditures on Undead Clash and a write-down of the Magical District game, and less than 3 weeks ago, management did not indicate a risk that any of the remaining projects would be terminated.”
This might worsen investor sentiment in the direction of the administration board and the corporate, Bogusz stated.
He added that the corporate’s concentrate on price optimization and money era, with no choice to extend bookings as a result of a possible profitable new sport launch, might result in additional derating of its valuation ratios.
Source: economictimes.indiatimes.com