Interim report January – September 2024

THIRD QUARTER

• Revenues amounted to MSEK 434.0 (MSEK 426.4), an increase by 2 % compared to the same period last year.
• Operating profit amounted to MSEK 142.8 (MSEK 85.4), an increase by 67 %.
• Profit after financial items amounted to MSEK 151.2 (MSEK 88.5), and profit after tax amounted to MSEK 119.7 (MSEK 69.3).
• Cash flow from operating activities amounted to MSEK 153.7 (MSEK 260.1), and cash flow from investing activities amounted to MSEK -115.3 (MSEK -359.1). Cash flow from investing activities includes MSEK 0.0 (MSEK -198.1) from short-term investments in bonds.
• By the end of the period cash amounted to MSEK 1,190.4 (MSEK 734.9).
• Earnings per share before dilution amounted to SEK 1.13 (SEK 0.66) and after dilution SEK 1.13 (SEK 0.65).
• Revenues in the quarter are mainly attributable to Cities: Skylines, Cities: Skylines II, Crusader Kings III, Hearts of Iron IV and Stellaris.

IMPORTANT EVENTS IN THE THIRD QUARTER

• New downloadable content was released to games during the period; Roads to Power to Crusader Kings III, Cosmic Storms to Stellaris and Ancient Worlds to Millennia.
• New ports to downloadable content was released during the period; Friends & Foes to Crusader Kings III.
• Mechabellum, developed by Game River and published by Paradox Arc, left early access and was released in version 1.0 on PC.

FIRST NINE MONTHS

• Revenues amounted to MSEK 1,491.8 (MSEK 1,646.6), a decrease by 9 % compared to the same period last year.
• Operating profit amounted to MSEK 326.1 (MSEK 534.0), a decrease by 39 %. Operating profit includes write-downs of MSEK 208.0 (MSEK 9.6).
• Profit after financial items amounted to MSEK 353.0 (MSEK 556.5), and profit after tax amounted to MSEK 273.8 (MSEK 432.4).
• Earnings per share before dilution amounted to SEK 2.59 (SEK 4.09) and after dilution SEK 2.59 (SEK 4.06).

COMMENTS BY THE CEO

As is often the case, the third quarter is calmer in terms of releases and thus revenue, although we had fantastic content such as Roads to Power to Crusader Kings III in the period. However, this does not mean that we have taken it easy in any way. Behind the scenes we’ve been going at full speed developing content for our core games, progressing our projects and continuing to refine our operations in accordance with our established strategy.

Recently, we've put a lot of energy into strengthening the publishing arm, defining our process for working with third-party game development, and continuing to focus our internal studios. The aim has been to create clear mandates, more explicit responsibility and to ensure the quality of the games.

Fredrik Wester, CEO of Paradox Interactive

PRESENTATION OF REPORT

31 October 12:00 PM CET Fredrik Wester, CEO, and Alexander Bricca, CFO, will host a livestream on Paradox’s YouTube channel to present the interim report, and answer questions related to the report and the company’s financial performance, https://www.youtube.com/paradoxinteractive.

Questions may be submitted in advance via our forum or by e-mailing them to [email protected]. It will be possible to e-mail questions to [email protected]during the presentation.

If you miss the presentation, it will be posted on Paradox’s YouTube channel at a later time.

This disclosure contains information that Paradox Interactive AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 31-10-2024 08:00 CET.