Interim report January – March 2023
FIRST QUARTER
Revenues amounted to MSEK 482.8 (MSEK 476.1), an increase by 1 % compared to the same period last year.
Operating profit amounted to MSEK 155.7 (MSEK 208.5), a decrease by 25 %.
Profit after financial items amounted to MSEK 157.1 (MSEK 207.7), and profit after tax amounted to MSEK 123.7 (MSEK 168.5).
Cash flow from operating activities amounted to MSEK 244.6 (MSEK 236.4), and cash flow from investing activities amounted to MSEK -170.1 (MSEK -157.4).
By the end of the period cash amounted to MSEK 812.7 (MSEK 671.2).
Earnings per share before dilution amounted to SEK 1.17 (SEK 1.60) and after dilution SEK 1.16 (SEK 1.59).
Revenues in the quarter are mainly attributable to Cities: Skylines, Crusader Kings III, Hearts of Iron IV, Stellaris, and Victoria 3.
IMPORTANT EVENTS IN THE FIRST QUARTER
Surviving the Abyss developed by Rocket Flair Studios was released in Early Access and Knights of Pen and Paper 3 developed by Kyy Games was released to PC. Both games were published by Paradox Arc.
Cities: Skylines – Remastered was released to Playstation 5 and Xbox Series X|S.
New downloadable content for the following games was released during the quarter; Jungle Pack for Prison Architect, First Contact for Stellaris, The Wolf Wars for Across the Obelisk and Rebirth for Surviving the Aftermath.
New ports of downloadable content were released during the quarter; Overlord for Stellaris: Console Edition.
Paradox Announcement Show was held, and three new games were announced; Cities: Skylines II developed by Colossal Order, Life By You developed by Paradox Tectonic and The Lamplighters League developed by Harebrained Schemes.
Age of Wonders 4, a new game developed by Triumph Studios, was announced in the quarter.
COMMENT BY THE CEO
2023 is a year of enthusiasm and anticipation for us at Paradox. In the first quarter, we announced a number of exciting titles from our pipeline that are to be released this year. To say the least, there is a lot for both Paradox and our players to look forward to.
2023 is also a year when we return to a more normal state for Paradox, where there will be significant variations between quarters in terms of releases. This is apparent in the first quarter, which is in the lower end of the spectrum. We had fewer major releases of downloadable content, which combined with amortisations for two experimental titles and that we took more development projects as direct costs resulted in a lower result, when compared to quarters with larger releases. Although we have added a lot of great content to the game catalogue, this emphasises the importance of continuing working on our release cadence for new content for active games.
Fredrik Wester, CEO of Paradox Interactive
PRESENTATION OF REPORT
27 April 12:00 PM CEST Fredrik Wester, CEO, and Alexander Bricca, CFO, will host a livestream on Paradox’s YouTube channel to present the quarter’s results, 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 27-04-2023 08:00 CET.