February 6, 2024

Year-end report January – December 2023

FOURTH QUARTER

Revenues amounted to MSEK 995.6 (MSEK 580.0), an increase by 72 % compared to the same period last year.
Operating profit amounted to MSEK 123.9 (MSEK 244.5), a decrease by 49 %. Write-downs of MSEK 175.8 (MSEK 0.0) are included in the operating profit.
Profit after financial items amounted to MSEK 131.3 (MSEK 244.2), and profit after tax amounted to MSEK 98.3 (MSEK 194.2).
Cash flow from operating activities amounted to MSEK 525.5 (MSEK 344.2), and cash flow from investing activities amounted to MSEK -146.6 (MSEK -251.7).
By the end of the period cash amounted to MSEK 1,098.0 (MSEK 747.5).
Earnings per share before dilution amounted to SEK 0.93 (SEK 1.84) and after dilution SEK 0.93 (SEK 1.84).
Revenues in the quarter are mainly attributable to Cities: Skylines II, Crusader Kings III, Hearts of Iron IV, The Lamplighters League and Stellaris.

IMPORTANT EVENTS IN THE FOURTH QUARTER

Cities: Skylines II, developed by Colossal Order, was released to PC.
The Lamplighters League, developed by Harebrained Schemes, was released to PC and Xbox series X|S. After revised sales forecasts, it was decided to write down the game's remaining balanced development cost. The game's impact on profit before tax is MSEK -250.4 in the period.
Star Trek: Infinite, developed by Nimble Giant Games Entertainment, was released on PC.
New downloadable content was released to games during the period; Arms Against Tyranny to Hearts of Iron IV, Legacy of Persia to Crusader Kings III, King of Kings to Europa Universalis IV, Astral Planes to Stellaris, Empire & Ashes to Age of Wonders 4, Colossus of the South to Victoria 3, and Amelia the Queen to Across the Obelisk.
Stellaris Nexus and Space Trash Scavenger were released in Early Access.
Harebrained Schemes and Paradox decided to part ways at the turn of the year.
The Board proposes a dividend of SEK 3.00 (SEK 2.00) per share.

FULL YEAR 2023

Revenues amounted to MSEK 2,642.1 (MSEK 1.972.9), an increase by 34 % compared to the same period last year.
Operating profit amounted to MSEK 657.9 (MSEK 887.1), a decrease by 26 %. Write-downs of MSEK 185.4 (MSEK 0.0) are included in the operating profit.
Profit after financial items amounted to MSEK 687.7 (MSEK 884.4), and profit after tax amounted to MSEK 530.6 (MSEK 708.7).
Earnings per share before dilution amounted to SEK 5.02 (SEK 6.71) and after dilution SEK 4.99 (SEK 6.70).

SUBSEQUENT EVENTS

The new game Prison Architect 2, developed by Double Eleven, was announced.

COMMENT BY THE CEO

2023 has been a year during which we’ve reached many milestones. We set a new revenue record, in the full year and in the quarter, we have stably more than six million players and we end the year with a very strong financial position. At the same time, we’re unable to relax. EBIT is at a level we are not happy with after a large write-down, and the quarter's game releases have not held the quality we want. There is certainly potential to reach even higher.

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.com** 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 06-02-2024 08:00 CET.