Year-end report January – December 2022

Tue, Feb 07, 2023 08:00 CET

FOURTH QUARTER

Revenues amounted to MSEK 580.0 (MSEK 390.5), an increase by 49 % compared to the same period last year.
Operating profit amounted to MSEK 244.5 (MSEK 148.1), an increase by 65 %.
Profit after financial items amounted to MSEK 244.2 (MSEK 147.5), and profit after tax amounted to MSEK 194.2 (MSEK 115.9).
Cash flow from operating activities amounted to MSEK 344.2 (MSEK 269.2), and cash flow from investing activities amounted to MSEK -251.7 (MSEK -213.7).
By the end of the period cash amounted to MSEK 747.5 (MSEK 599.7).
Earnings per share before and after dilution amounted to SEK 1.84 (SEK 1.10).
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 FOURTH QUARTER

Victoria 3, developed by Paradox Development Studio, was released.
Airport Simulator, developed by Playrion Game Studio, was released for iOS and Android.
Stardeus, developed by Kodo Linija, was released in Early Access.
New downloadable content for the following games was released during the quarter; Undead and Future Tech for Prison Architect, Shattered Hope for Surviving the Aftermath and Financial Districts for Cities: Skylines.
New ports of downloadable content were released during the quarter; Northern Lords Flavor Pack for Crusader Kings III.
The Board proposes a dividend of SEK 2.00 (SEK 1.00) per share.

FULL YEAR 2022

Revenues amounted to MSEK 1,972.9 (MSEK 1,447.5), an increase by 36 % compared to the same period last year.
Operating profit amounted to MSEK 887.1 (MSEK 307.5), an increase by 189 %.
Profit after financial items amounted to MSEK 884.4 (MSEK 303.9), and profit after tax amounted to MSEK 708.7 (MSEK 247.8).
Earnings per share before dilution amounted to SEK 6.71 (SEK 2.35) and after dilution SEK 6.70 (SEK 2.34).

COMMENT BY THE CEO

It’s safe to say we entered 2022 with challenges ahead of us. In the same period last year, our main issues were having a consistently high game quality, a high release cadence and cost control, areas that are the core of every well-functioning gaming company.

At the end of the year, we can see that our efforts have given us a very nice return. We have had good quality in our releases, we have continued to work hard to keep a good release cadence and also made important efficiency improvements. Our efforts to improve will continue as it is a work without a real end, but a profit before tax of SEK 884 million for the full year speaks for itself, we are on the right track. At the same time, it is important not to forget that our results were given a strong boost by a weak SEK, but ultimately this year's results would not have been possible without the entire organisation’s solid teamwork.

Fredrik Wester, CEO of Paradox Interactive

PRESENTATION OF REPORT

7 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 07-02-2023 08:00 CET.

For additional information, please contact:
Fredrik Wester, CEO Paradox Interactive
Alexander Bricca, CFO Paradox Interactive
Email: ir@paradoxinteractive.com
Phone: +4670-355 54 18

About Paradox Interactive
The Paradox group today consists of both publishing and internal development of games and brands. Paradox has a broad portfolio of games owns the most important brands, including Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities: Skylines, Prison Architect, Victoria, Age of Wonders and the World of Darkness catalogue of brands. Since 2004, the company has published its games all over the world, initially through physical distribution but primarily in digital channels after 2006. Paradox games are developed primarily for PC and console platforms, but the company also releases games on mobile. The largest markets today include the US, UK, China, Germany, France and Scandinavia. In total, Paradox games have over five million players each month.

Paradox Interactive AB (publ)’s shares are listed on Nasdaq Stockholm First North Premier under ticker PDX. Certified Advisor: FNCA Sweden AB. For more information, please visit www.paradoxinteractive.com.