February 6, 2025

Year-end report January – December 2024

FOURTH QUARTER

Revenues amounted to MSEK 709.1 (MSEK 995.6), a decrease by 29 % compared to the same period last year.
Operating profit amounted to MSEK 395.3 (MSEK 123.9), an increase by 219 %. Operating profit includes write-downs amounting to MSEK 0.0 (MSEK 175.8).
Profit after financial items amounted to MSEK 404.3 (MSEK 131.3), and profit after tax amounted to MSEK 310.8 (MSEK 98.3).
Cash flow from operating activities amounted to MSEK 441.8 (MSEK 525.5), and cash flow from investing activities amounted to MSEK -158.9 (MSEK -146.6).
By the end of the period cash amounted to MSEK 1,469.4 (MSEK 1,098.0).
Earnings per share before dilution amounted to SEK 2.94 (SEK 0.93) and after dilution SEK 2.94 (SEK 0.93).
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 FOURTH QUARTER

New downloadable content was release to games during the period; Götterdämmerung to Hearts of Iron IV, Wandering Nobles to Crusader Kings III, Grand Archive to Stellaris, Pivot of Empire to Victoria 3, Ways of War to Age of Wonders 4, Atomic Ambitions to Millennia, Urban Promenades and Modern Architecture to Cities Skylines II as well as Mountain Village and Map Pack 3 to Cities: Skylines.
New ports to console for downloadable content was released during the period; Tours and Tournaments to Crusader Kings III as well as Galactic Paragons and First Contact to Stellaris.
The new game Tlatoani, developed by Perspective Games and Bellwood Studios, published by Paradox Arc, was released in Early Access.
The game Space Trash Scavenger, developed by SquarePlay Games and published by Paradox Arc, was released in 1.0.
The game Mechabellum, developed by Game River and published by Paradox Arc, was sold back to the developer.
The Board of Directors proposes an ordinary dividend of SEK 3.00 (SEK 3.00) per share and a special dividend of SEK 2.00 (SEK 0.00) per share.

FULL YEAR

Revenues amounted to MSEK 2,200.9 (MSEK 2,642.1), a decrease by 17 % compared to last year.
Operating profit amounted to MSEK 721.4 (MSEK 657.9), an increase by 10 %. Write-downs of MSEK 208.0 (MSEK 185.4) are included in the operating profit.
Profit after financial items amounted to MSEK 757.3 (MSEK 687.8), and profit after tax amounted to MSEK 584.6 (MSEK 530.6).
Earnings per share before dilution amounted to SEK 5.54 (SEK 5.02) and after dilution to SEK 5.53 (SEK 4.99).

SUBSEQUENT EVENTS

Paradox Interactive entered into an agreement to purchase 100% of the shares in Bulgarian development studio Haemimont Games AD.

COMMENTS BY THE CEO

We close the year with a period of high revenue and good margins, supported by strong releases, successful marketing activities and a currency tailwind. While we are proud of the quarter's results and our financial position, we should not overly focus on any one period. There is a lot of variation between quarters, depending on what and how much we have released as well as which marketing activities we have carried out. This makes the persistent work over time most important, especially as the successes of any given quarter are driven by efforts that have been ongoing for a longer period.

Fredrik Wester, CEO of Paradox Interactive

PRESENTATION OF REPORT

6 February 12:00 PM CET Fredrik Wester, CEO, and Alexander Bricca, CFO, will host a livestream on Paradox’s YouTube channel to present the year-end 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 ir@paradoxinteractive.com. It will be possible to e-mail questions to ir@paradoxinteractive.comduring 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 06-02-2025 08:00 CET.