Paradox Interactive FY2023 Earnings Release

Feb, 2024 *Please note that this is a translation for information purposes only –
in case of any discrepancies between this version and the Swedish,
the Swedish version shall prevail.

YEAR – END REPORT
JANUAR Y – DECEMBER 202 3

YEAR -END REPORT , JANUARY – DECEMBER 2023 2

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 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, Col ossus 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 de crease 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.

YEAR -END REPORT , JANUARY – DECEMBER 2023 3

COMMENTS BY THE CEO
NEW HEIGHTS, BUT NOT SATISFIED
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.
As always, we can describe the year in terms of
releases of content for live games and releases of
new games.
If we look at the releases of content for live games,
we have released a lot that is very good. Our core
games and their expansions have continued to be
very popular with our players and we are proud of
that. This is especially true during a year when the
competition in the gaming market has been fiercer
than ever.
As for the release of new games, feelings are mixed.
Cities: Skylines II is the big release of the quarter, and
we are upset that we didn’t live up to players’
performance expectations and couldn’t release on all
platforms at the same time. The game has still sold
well, and by the end of the quarter we had sold more
than a million copies. At the same time, it is clear that
we can and must do better. Since release, we’ve been
working hard on improvements and are fully
committed to continuing to improve and d evelop the
game, because we strongly believe in its future and
are doing everything we can to get there.
The quarter’s other game releases leave more to be
desired. The Lamplighters League missed the mark
commercially and during the quarter we have, as
previously known, written down the entire value of
the game. It does not affect our long -term finances
but is a heavy hit to the quarter’s bottom line.
Looking ahead, after 2021 we have had a clearer
focus on how we build our project portfolio, and that
is a path we continue to follow with full clarity.
Our future
Having said this, I also want to take the opportunity
talk about what is next . And there’s a lot to be excited
about. We are debt -free with a strong balance sheet,
a substantial cash position and a good cash flow, this
gives us good preconditions for growing and taking
advantage of the opportunities that arise in uncertain
times. We have an exciting pipeline of promising
titles planned for the coming years and we are
moving full steam ahead in continuing to strengthen
our importa nt core games.
We have things to work on, but the journey has only
just begun. 2024 will be another intense year but our
team has both the skill and the passion to reach new
milestones together.

Fredrik Wester, CEO

YEAR -END REPORT , JANUARY – DECEMBER 2023 4
PARADOX INTERACTIVE
AT A GLANCE
Paradox Interactive is one of the premier developers and publishers of strategy and management games for PC
and consoles. By developing long -lived games with downloadable content, renewing its game portfolio with
engaging games and having a close relationship to its players, the company creates the strategy and management
segments’ best gaming experiences.
The group today consists of publishing business and six studios in six countries that develop gaming experiences for
the company’s over six million monthly active players. Amongst its most important active games are Cities: Skylines
II, Hearts of Iron IV, Crusader Kings III, Europa Universalis IV, Victoria 3, Stellaris and Age of Wonders 4.
Paradox strives for a healthy profit margin, a stable operating cash flow and strong growth. Thus, enabling stable
operations and continuous investments in the company’s future.

6 +
Million MAU

1 0
Active games
2 5 %
R12 profit margin

9
Games in pipeline

Rolling 12 month revenues and operating profit

Quarterly revenues and operating profit
0
500
1 000
1 500
2 000
2 500
3 000
Rolling 12 months revenue Rolling 12 months operating profit -200
0
200
400
600
800
1 000
1 200
Revenues Operating profit

YEAR -END REPORT , JANUARY – DECEMBER 2023 5
RELEASE S IN THE PERIOD

CITIES: SKYLINES II
Release date: 24 October 2023
Platforms: PC
Price: USD 59.99
Description: Raise a city from the ground up and transform it into a thriving
metropolis with the most realistic city builder ever. Push your creativity and
problem -solving to build on a scale you’ve never experienced. With deep simulation
and a living economy, this is world -building without limits.
Publisher: Paradox Interactive
Developer: Colossal Order

STAR TREK: INIFINITE
Release date: 12 October 2023
Platforms: PC
Price: USD 29.99
Description: Star Trek: Infinite is a grand strategy experience that lets you play your
own Star Trek story as the leader of one of four major factions in the galaxy. Follow
the specially crafted story or blaze your own trail in the first Star Trek grand strategy
game .
Publisher: Paradox Interactive
Developer: Nimble Giant Entertainment

THE LAMPLIGHTERS LEAGUE
Release date: 3 October 2023
Platforms: PC , Xbox Series X|S
Price: USD 49.99
Description: Recruit a team of misfits with unique abilities and unforgettable
personalities, and chase the Banished Court to the ends of the earth in a mix of real –
time infiltration, turn -based tactical combat, and a character -driven story of
adventure and intrigue.
Publisher: Paradox Interactive
Developer: Harebrained Schemes

YEAR -END REPORT , JANUARY – DECEMBER 2023 6

HEARTS OF IRON IV: ARMS AGAINST TYRANNY
Release date: 10 October 2023
Platforms: PC
Price: USD 19.99
Description: Four Northern democracies are seemingly helpless against nearby
predatory dictatorships. Despite their size, Finland, Norway, Denmark, and Sweden
have a chance to avoid conquest through clever diplomacy or fierce resistance.
Write a new history of the Nordic countries in Arms Against Tyranny, a new
expansion for Hearts of Iron IV.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

CRUSADER KINGS III: LEGACY OF PERSIA
Release date: 9 November 2023
Platforms: PC
Price: USD 12.99
Description: The lands of Persia are well -populated, rich in resources and often a
crossroads of empire. Join the struggle for medieval dominance in this historically
important and fascinating region.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

EUROPA UNIVERSALIS IV: KING OF KINGS
Release date: 6 November 2023
Platforms: PC
Price: USD 14.99
Description: Empires and cultures as old as civilization itself stretch across the Near
and Middle East, barriers against Ottoman expansion into Asia and North Africa. In
Europa Universalis IV: King of Kings, these great centres of humanity – Cairo,
Constantinople, and Isfahan – get a fresh look, with new historical flavour , greater
gameplay variety and compelling alternate histories as you rewrite the history of the
early modern world.
Publisher: Paradox Interactive
Developer: Paradox Tinto

YEAR -END REPORT , JANUARY – DECEMBER 2023 7

STELLARIS: ASTRAL PLANES
Release date: 16 November 2023
Platforms: PC
Price: USD 19.99
Description: Astral Planes offers you the chance to chart your own path, navigating
an array of wonders and dangers alike. Travel through Rifts in space and time for a
glimpse of strange, new realities. What will you discover, in a universe beyond
limits?
Publisher: Paradox Interactive
Developer: Abrakam, Paradox Development Studio

AGE OF WONDERS 4: EMPIRE & ASHES
Release date: 7 November 2023
Platforms: PC , Playstation 5, X box series X|S
Price: USD 19.99
Description: Fuse magic and steel to create mighty weapons of war in the Age of
Wonders 4: Empires & Ashes expansion. Ravage the realms of the Godir with the
brutal Reaver culture, and besiege cities with cannons and war machines. Seek a
new kind of victory by unlockin g the secrets of the Seals of Power to conquer the
Astral Sea!
Publisher: Paradox Interactive
Developer: Triumph Studios

VICTORIA 3: COLOSSUS OF THE SOUTH
Release date: 14 November 2023
Platforms: PC
Price: USD 5.99
Description : Rich in people, culture and resources, South America enters the
Victorian Age with a lot of advantages. But many challenges await those nations
newly freed from European dominance. Stake your claim on the future of the
Southern Hemisphere in Colossus of the South, a new Region Pack for Victoria 3.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

YEAR -END REPORT , JANUARY – DECEMBER 2023 8

ACROSS THE OBELISK: AMELIA, THE QUEEN
Release date: 12 December 2023
Platforms: PC
Price: USD 4.99
Description : Amelia, the Queen brings back the astray Queen of Senenthia to help
search for her missing daughter, the princess. This new hero comes with a new set of
enchantment cards specializing in cold damage and vanishing cards. The Queen also
comes with new card backs, emotes and skins for more diversity to your game.
Emb ark on your journey to solve the mystery of the Obelisk with the Queen herself at
the helm .
Publisher: Paradox Interactive
Developer: Dreamsite Games

STELLARIS NEXUS
Release date: 12 December 2023 (Early Access)
Platforms: PC
Price: USD 14.99
Description : Stellaris Nexus is a social strategy game offering all the depth of a full
spectrum 4X experience played start to finish in about 1 hour. Choose a unique
faction and leader and challenge up to 7 other players, plotting, battling and
backstabbing your way t o galactic dominance.
Publisher: Paradox Arc
Developer: Whatboy Games

SPACE TRASH SCAVENGER
Release date: 9 November 2023 (Early Access)
Platforms: PC
Price: USD 19.99
Description: Grab your jetpack and explore procedural asteroid fields, derelict
spaceships and abandoned outposts. Build your Space Rig to process scavenged
trash. Craft, trade and fight your way home in this interstellar, open -world survival
sandbox.
Publisher: Paradox Arc
Developer: SquarePlay Games

YEAR -END REPORT , JANUARY – DECEMBER 2023 9
FINANCIAL OVERVIEW
REVENUE AND PROFIT FOURTH QUARTER
Revenues amounted to MSEK 995.6 (MSEK 580.0 ), a n
increase by 72 % compared to the same period last
year. Cities: Skylines II, developed by Colossal Order,
was released to PC. Star Trek: Infinite, developed by
Nimble Giant Games Entertainment, was released on
PC . The Lamplighters League, developed by
Harebrained Schemes, was released to PC and Xbox
series X|S. 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 Pla nes 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 was released in Early Access.
Cost of goods sold amounted to MSEK 712.0 (MSEK
253.2 ), attributable to game development,
development support, operation and maintenance of
games, costs of licenses, brands, and similar rights, as
well as royalties and revenue based earn -outs to
development studios and external rights holders.
Amortisation of released games amounted to MSEK
299.9 (MSEK 118.9 ). The amortisations have increased
as a result of releases of new games and downloadable
content . The Lamplighters League accounts for MSEK
149.6 of the amorti sation in the period . The game was
released in October and has been amortised using
three months degressive amortisation .
Write -downs for the period within cost of goods sold
amount to MSEK 175.8 ( MSEK 0.0). The write -downs
mainly relate to The Lamplighers League, amounting
to MSEK 170.9. The write -down of The Lamplighters
League resulted in the remaining capitali sed
development at year -end being written down to MSEK
0.0, based on revised forecasted sales figures for the
game.

Amortisations of licenses, brands, and similar rights
amount ed to MSEK 19.1 (MSEK 22. 6).
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 211.3 (MSEK
103.8 ) was expensed regarding non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs . The change is largely explained by
the fact that royalties have increased compared to the
comparison period as a result of the release of Cities:
Skylines II, developed by the external game developer
Colossal Order. Revenue -based contingent
conside ration is higher than last year due to the
release of Age of Wonders 4, developed by Triumph
Studios , earlier this year.
Non -capitalised development costs have also
increased compared with the comparison period as a
result of a greater number of games where
capitalisation begins in a later development phase
compared to the previous year . Post -release
development of The Lamplighters League has been
expensed directly, which also contributed to an
increase in non -capitali sed development costs. Costs
for development support, operation and maintenance
of games has increased in comparison to the same
period last year .
Selling expenses for the period amounted to MSEK 87.6
(MSEK 45.2). The c osts are mainly attributed to Cities:
Skylines II, but the cost s for upcoming game releases
ha ve also increased. 0
20
40
60
80
100
120
140
160
180
200
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Write-downs

YEAR -END REPORT , JANUARY – DECEMBER 2023 10
Administrative expenses for the period amounted to
MSEK 27.3 (MSEK 22.8). Costs for administration are
generally unchanged over time and are relatively
unaffected by other operations .

Other income amounted to MSEK 2.1 (MSEK 1.4 ), and
other expenses to MSEK -46.9 (MSEK -15.7). Other
income and other expenses consist primarily of
exchange rate effects on the group’s cash and cash
equivalents, operating receivables, and operating
liabilities during the quarter.
Operating profit amounted to MSEK 123.9 (MSEK
244.5 ). Financial items amounted to MSEK 7.4 (MSEK
-0.2 ). Other financial items primarily consist of
calculated interest on lease liabilities and interest
received on cash and cash equivalents.
Profit after financial items amounted to MSEK 131.3
(MSEK 244.2 ), and profit after tax amounted to MSEK
98.3 (MSEK 194.2 ).
FINANCIAL POSITION
Capitalised development amounted to MSEK 1,463.2
(MSEK 1,650.3 ) by the end of the period. The item
refers to both games that have not yet been released
and games that have been released and subsequently
amortised . The decrease is mainly explained by the
release of The Lamplighters League, which has
resulted in large amortisations and write -downs within
the item.

Licenses, brands, and similar rights amounted to MSEK
105.5 (MSEK 159.5 ).
Goodwill amounted to MSEK 22.4 (MSEK 2 2.4)
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for offices amounted to MSEK 112.5
(MSEK 136.1 ).
Shares in associates amount to MSEK 0.0 (MSEK 3 2.6)
by the end of the period, the change is attributable to
the sale of Seattle -based Hardsuit Labs.
Accounts receivable amounted to MSEK 358.2 (MSEK
259.9 ).
Bonds amount to MSEK 197.1 (MSEK 0. 0) at the end of
the period. All bonds are short -term and constitute
investment s of excess cash .
Cash and cash equivalents amounted to MSEK 1,098.0
(MSEK 747.5 ).
Shareholders’ equity amounts to MSEK 2,620.5 (MSEK
2,292.4 ), of which MSEK 530.6 (MSEK 708.7 ) consists of
accumulated profit for the year.
Long term lease liabilities amount to MSEK 76.0 (MSEK
104 .8) consisting of liabilities for office premises.
Deferred tax liabilities amount to MSEK 144.0 (MSEK
137.2 ), mainly relating to untaxed reserves and
intangible assets from acquisitions.
Short term lease liabilities amount to MSEK 32.6 (MSEK
35.6 ) consisting of short -term liabilities for office
premises. 0
100
200
300
400
500
600
700
800
900
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
COGS Selling expenses Administrative expenses 0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Thousands
Capitalised development costs

YEAR -END REPORT , JANUARY – DECEMBER 2023 11
Accrued expenses and prepaid income amounts to
MSEK 493.9 (MSEK 418.6 ) by the end of the period.
Prepaid revenue is higher compared to the previous
year .
CASH FLOW FORTH QUARTER
Cash flow from operating activities amounted to MSEK
525.5 (MSEK 344.2 ), primarily attributable to the
operating profit. Cash flow from investing activities
amounted to MSEK -146.6 (MSEK -251.7 ). Cash flow
from financing activities amounted to MSEK -10.1
(MSEK -8.8 ) relating mainly to amortisation of lease
liabilities for office premises.
FULL YEAR SUMMARY
Revenues amounted to MSEK 2,642.1 (MSEK 1,392.9 )
an increase by 34 % compared to the same period last
year. Cost of goods sold amounted to MSEK 1,567.3
(MSEK 862.6 ), primarily attributable to game
development, development support, operation and
maintenance of games, as well as royalties and
revenue based earn -outs to third parties. Write -downs
within cost of goods sold amounts to MSEK 185.4
(MSEK 0.0). Cost s of royalties have increased in
comparison with the same period last year . Revenue
based earn -outs ha ve increased following the release
of Age of Wonders 4. Operating profit amounted to
MSEK 657.9 (MSEK 887.1 ), a de crease by 26 %. Profit
after financial items amounted to MSEK 687.8 (MSEK
884.4 ), and profit after tax amounted to MSEK 530.6
(MSEK 708.7 ). Cash flow from operating activities
amounted to MSEK 1,451.8 (MSEK 1,084.7 ). Cash flow
from investing activities amounted to MSEK -848.3
(MSEK -807.0 ). Cash flow from financing activities
amounted to MSEK -249.0 (MSEK -141.0 ).
RELATED PARTY TRANSACTIONS
No transactions have taken place between the group
and related parties that have affected the group’s
position and results.
PARENT COMPANY THIRD QUARTER
The parent company houses the publishing business.
Within the publishing business, the parent company
buys development services from both external and
wholly owned development studios and pays royalties
to these where applicable. The parent company also
provides administrative services to the subsidiaries. All
in all, this leads to the parent company’s turnover to a
large extent making up the group’s total turnover .
Parent company revenues for the quarter amounted to
MSEK 1,002.3 (MSEK 586.6 ). Operating pro fit amounted
to MSEK 12.7 (MSEK 144.5 ). Profit after financial items
amounted to MSEK 19.8 (MSEK 144.8 ). Profit after tax
amounted to MSEK 89.8 (MSEK 271.8 ).
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance
with IAS 34, Interim Financial Reporting as well as RFR
1 and the annual accounts act. The parent company
applies the Swedish Financial Reporting Board’s
recommendation RFR 2, accounting for legal entities.
Accounting principles and calculation bases are in
accordance with the principles applied in the
company’s most recent annual report. The carrying
amount of the Group’s long term financial instruments
valued at accrued acquisition value essentially
corresponds to its fair value as the interest rate is in
parity with current market interest rates .
The carrying amount of the Group’s short -term
financial instruments valued at accrued acquisition
value essentially corresponds to its fair value as the
discounting effect is not significant. Accounting
principles and calculation bases are in accordance
with the principles applied in the company’s most
recent annual report .
RISKS AND UNCERTAINTIES
Paradox is, like most companies, exposed to certain
risks in its operations. The risks and uncertainties are
described in the Annual Report for 202 2, page 3 1. Risks
to be specifically mentioned include a dependency on
key employees, dependency on a few sales partners,
delays of game projects, low revenues from game
releases, and foreign currency. These risks and
uncertainties may have a direct or indirect impact on
the group’s financial position and res ults .
DIVIDEND PROPOSAL
The Board proposes a dividend to shareholders of SEK
3.00 per share. The Board proposes Friday , May 17,
202 4 as record date. If the Annual General Meeting
approves the proposal, the dividend will be distributed
by Euroclear Sweden AB on Wednesday May 22, 202 4.

YEAR -END REPORT , JANUARY – DECEMBER 2023 12
FINANCIAL CALENDAR
Annual report 202 3
Interim report January -March 202 4
Annual General Meeting 202 4
Interim report January -June 202 4
Interim report January -September 202 4
Year -end report 202 4
2024 -04-17
2024 -04-25
2024 -05-15
2024 -07-25
2024 -10-31
202 5-02-06
CONTACT
Additional information about the company can be
found on the corporate website
www.paradoxinteractive.com. The company can be
contacted by e -mail, ir@paradoxinteractive.com, or by
post Paradox Interactive AB, Magnus Ladulåsgatan 4,
118 66, Stockholm, Sweden .
ASSURANCE BY THE BOARD OF DIRECTORS
The board of directors hereby provide an assurance
that the interim report provides a true and fair view of
the parent company’s and the group’s business,
positions, and earnings, and describe the significant
risks and uncertainties faced by the companies making
up the group.
Stockholm February 6 , 202 4

The Board of Directors
This report has not been subject to review by the company’s
auditors.
This information is information that Paradox Interactive AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication 08:00 CET
on 6 February 202 4.

YEAR -END REPORT , JANUARY – DECEMBER 2023 13
KEY FIGURES FOR THE GROUP

For definitions of key figures, see the annual report. 2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
Revenues, KSEK 995,554 580,010 2,642,107 1,972,906
Operating profit, KSEK 123,907 244,456 657,868 887,146
Profit after financial items, KSEK 131,273 244,220 687,759 884,440
Profit after tax, KSEK 98,268 194,179 530,625 708,709
Operating margin 12% 42% 25% 45%
Profit margin 13% 42% 26% 45%
Equity/assets ratio 73% 73% 73% 73%
Equity per share before dilution, SEK 24.81 21.70 24.81 21.70
Equity per share after dilution, SEK 24.75 21.70 24.75 21.70
Earnings per share before dilution, SEK 0.93 1.84 5.02 6.71
Earnings per share after dilution, SEK 0.93 1.84 4.99 6.70
Number of shares by the end of the period before dilution 105,623,025 105,619,209 105,623,025 105,619,209
Number of shares by the end of the period after dilution 105,885,175 105,619,209 105,885,175 105,619,209
Average number of shares before dilution 105,623,025 105,619,209 105,621,117 105,609,605
Average number of shares after dilution 105,799,356 105,619,209 106,153,901 105,723,810
Average number of employees 622 656 649 672
Number of employees by the end of the period 625 656 625 656

YEAR -END REPORT , JANUARY – DECEMBER 2023 14
GROUP INCOME STATEMENT ( K SEK)

OTHER COMPREHENSIVE INCOME (KSEK)

2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
Revenues 995,554 580,010 2,642,107 1,972,906
Cost of goods sold -711,982 -253,231 -1,567,321 -862,629
Gross profit 283,572 326,779 1,074,786 1,110,277
Selling expenses -87,585 -45,196 -291,180 -170,490
Administrative expenses -27,290 -22,814 -99,225 -91,618
Other income 2,136 1,385 20,916 56,635
Other expenses -46,926 -15,697 -47,428 -17,658
Operating profit 123,907 244,456 657,868 887,146
Profit from shares in subsidiaries – – 15,440 –
Financial income 9,288 2,425 25,086 3,952
Financial expense -1,922 -2,660 -10,635 -6,658
Profit after financial items 131,273 244,220 687,759 884,440
Tax -33,005 -50,042 -157,134 -175,731
Profit for the period 98,268 194,179 530,625 708,709
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 0.93 1.84 5.02 6.71
Earnings per share after dilution, SEK 0.93 1.84 4.99 6.70 2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
Profit for the period 98,268 194,179 530,625 708,709
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences -5,191 -2,315 2,493 20,780
Other comprehensive income -5,191 -2,315 2,493 20,780
Total comprehensive income for the period 93,077 191,864 533,118 729,489
Profit for the period is attributable to the shareholders of the parent company.

YEAR -END REPORT , JANUARY – DECEMBER 2023 15
GROUP BALANCE SHEET (KSEK)

2023-12-31 2022-12-31
ASSETS
Non-current assets
Capitalised development 1,463,202 1,650,275
Licenses, brands and similar rights 105,532 159,501
Goodwill 22,350 22,415
Property and equipment 13,034 17,561
Right-of-use assets 112,515 136,118
Investments in associates – 32,555
Other long term assets 18,691 18,695
Total non-current assets 1,735,323 2,037,120
Current assets
Accounts receivable 358,219 259,948
Tax assets 63,251 709
Other receivables 70,420 34,769
Prepaid expenses and accrued revenue 57,837 61,376
Bonds 197,051 –
Cash and cash equivalents 1,098,025 747,506
Total current assets 1,844,803 1,104,307
TOTAL ASSETS 3,580,126 3,141,427 EQUITY AND LIABILITIES
Equity
Share capital 528 528
Other capital contributed 29,748 29,542
Reserves 22,684 25,176
Retained earnings 2,036,870 1,528,422
Profit for the period 530,625 708,709
Total equity 2,620,455 2,292,377
Long term liabilities
Lease liabilities 75,997 104,845
Deferred tax liabilities 144,044 137,220
Total long term liabilities 220,041 242,065
Current liabilities
Accounts payable 52,481 52,487
Current tax liabilities 95,427 66,529
Lease liabilities 32,583 35,616
Other liabilities 65,275 33,725
Accrued expenses and prepaid revenues 493,864 418,628
Total current liabilities 739,630 606,985
TOTAL EQUITY AND LIABILITIES 3,580,126 3,141,427

YEAR -END REPORT , JANUARY – DECEMBER 2023 16
CHANGE IN GROUP EQUITY (KSEK)

Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2023-01-01 528 29,542 25,176 2,237,131 2,292,377
Profit for the period 530,625 530,625
Other comprehensive income
Translation difference -2,493 -2,493
Total other comprehensive income – – -2,493 – -2,493
Total comprehensive income – – -2,493 530,625 528,132
Transactions with owners
Premiums when redeeming warrants 0 1,008 – – 1,008
Re-purchase warrants – -802 – – -802
Share-based payments staff – – – 10,978 10,978
Dividends – – – -211,238 -211,238
Total transactions with owners 0 206 – -200,260 -200,054
AT THE END OF THE PERIOD 2023-12-31 528 29,748 22,684 2,567,495 2,620,455 Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2022-01-01 528 27,994 4,397 1,628,644 1,661,563
Profit for the period 708,709 708,709
Other comprehensive income
Translation difference 20,780 20,780
Total other comprehensive income – – 20,780 – 20,780
Total comprehensive income – – 20,780 708,709 729,489
Transactions with owners
Premiums when redeeming warrants 0 3,362 – – 3,362
Re-purchase warrants – -1,814 – – -1,814
Share-based payments staff – – – 5,378 5,378
Dividends – – – -105,600 -105,600
Total transactions with owners 0 1,548 – -100,222 -98,674
AT THE END OF THE PERIOD 2022-12-31 528 29,542 25,176 2,237,131 2,292,377

YEAR -END REPORT , JANUARY – DECEMBER 2023 17
GROUP CASH FLOW STATEMENT (KSEK)

2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
Cash flow from operations
Operating profit 123,907 244,456 657,868 887,146
Adjustment of depreciation, amortisation and write-downs 501,999 153,078 990,312 473,498
Other adjustments 4,424 40 6,079 4,362
Interest received 9,288 2,425 25,086 3,952
Interest paid -1,922 -2,660 -10,635 -6,658
Tax paid -30,527 -60,289 -184,436 -126,703
Cash flow before changes in working capital 607,170 337,049 1,484,275 1,235,598
Changes in working capital
Change in current receivables -147,689 -69,157 -138,630 -141,060
Change in current liabilities 66,035 76,324 106,196 -9,799
Cash flow from current operations 525,516 344,215 1,451,842 1,084,740
Investing activities
Cash flow from sales of associated companies – – 53,174 –
Investments in capitalised development -122,100 -250,678 -676,045 -793,771
Investments in licenses, brands and similar rights -27,103 – -27,103 –
Investments in equipment -229 -1,008 -3,050 -2,119
Investments in subsidiaries – – – -11,055
Investments in bonds -138,287 – -336,355 –
Sales of bonds 141,100 – 141,100 –
Investments in other financial assets – – – -25
Cash flow from investing activities -146,619 -251,685 -848,278 -806,969
Amortisation of lease liability -10,141 -8,801 -37,722 -35,371
Paid dividend – – -211,238 -105,600
Cash flow from financing activities -10,141 -8,801 -248,960 -140,971
Cash flow for the period 368,757 83,729 354,603 136,800
Cash and cash equivalents at the beginning of the period 734,902 665,922 747,506 767,561
Exchange rate effect -5,634 -2,145 -4,084 10,981
Cash and cash equivalents at the end of the period 1,098,025 747,506 1,098,025 747,506

YEAR -END REPORT , JANUARY – DECEMBER 2023 18
PARENT COMPANY INCOME STATEMENT (KSEK)

2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
Revenues 1,002,300 586,555 2,647,805 1,992,191
Cost of goods sold -832,574 -360,403 -1,962,066 -1,276,664
Gross profit 169,727 226,153 685,739 715,528
Selling expenses -82,574 -43,582 -272,670 -163,264
Administrative expenses -28,703 -22,842 -99,437 -91,873
Other income 1,199 384 15,260 54,248
Other expenses -46,926 -15,657 -46,926 -17,060
Operating profit 12,723 144,456 281,967 497,578
Profit from shares in subsidiaries – – 35,381 –
Financial income 8,071 1,702 20,769 1,952
Financial expense -1,002 -1,312 -7,003 -2,391
Profit after financial items 19,792 144,847 331,113 497,140
Year-end appropriations 100,000 200,000 100,000 200,000
Income tax expense -29,946 -73,062 -97,573 -145,215
Profit for the year and total income for the year 89,846 271,785 333,541 551,925

YEAR -END REPORT , JANUARY – DECEMBER 2023 19
PARENT COMPANY BALANCE SHEET (KSEK)

2023-12-31 2022-12-31
ASSETS
Non-current assets
Capitalised development 1,098,525 1,408,095
Licenses, brands and similar rights 34,855 37,495
Property and equipment 6,143 10,116
Shares in subsidiaries 305,812 305,812
Investments in associates – 16,766
Other long term assets 17,393 17,393
Total non-current assets 1,462,726 1,795,677
Current assets
Accounts receivable 350,400 255,031
Receivables from group companies 19,144 79,656
Tax assets 58,560 –
Other receivables 65,968 28,163
Prepaid expenses and accrued revenues 64,945 59,969
Bonds 197,051 –
Cash and cash equivalents 780,059 448,013
Total current assets 1,536,126 870,832
TOTAL ASSETS 2,998,853 2,666,508 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528
Capitalised development reserve 1,098,525 1,408,095
Non-restricted equity
Share premium reserve 29,748 29,542
Retained earnings 423,566 -237,669
Profit for the period 333,541 551,925
Total equity 1,885,908 1,752,422
Untaxed reserves 605,000 485,000
Current liabilities
Accounts payable 43,965 45,619
Liabilities to group companies 25,393 28,016
Current tax liabilities – 4,352
Other liabilities 4,122 4,339
Accrued expenses and prepaid revenues 434,465 346,760
Total current liabilities 507,944 429,086
TOTAL EQUITY AND LIABILITIES 2,998,853 2,666,508

YEAR -END REPORT , JANUARY – DECEMBER 2023 20
NOTES (KSEK)
NOTE 1. SEGMENT REPORTING
Group Management has determined the operating segments based on the information processed by the CEO and which is the basis f or making
strategic decisions. The operations consist of one segment.
Group revenue from clients based on where the distributor is located is divided into the following geographical areas ;

During the quarter and the 12-month period respectively MSEK 606.2 (MSEK 412.8 ) and MSEK 1,749.5 (MSEK 1,240.6 ) of the group’s revenue came
from one and the same customer.
Group revenue divided into major product categories;

Prepaid revenue amounted to MSEK 252.7 (MSEK 264.2 ) at the end of the period. Of these, MSEK 252.7 is expected to be reported as revenue
during the next 12 -month period, and MSEK 0.0 within 24 months .
The revenues for the quarter and the 12-month period respectively include MSEK 106.2 (MSEK 42.6 ) and 194.4 (MSEK 185.1 ) respectively which
were included in prepaid revenue at the beginning of the period .
NOTE 2. DEPRECIATIONS, AMORTISATIONS AND WRITE -DOWNS BREAKDOWN PER FUNCTION

.2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
USA 859,017 472,202 2,285,109 1,679,021
Sweden 22,454 9,339 49,873 21,318
Rest of Europe 96,212 88,626 258,575 234,297
Rest of the World 17,871 9,843 48,550 38,269
Total 995,554 580,010 2,642,107 1,972,906 2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
PC 891,943 505,162 2,202,494 1,678,253
Console 79,004 55,937 310,562 218,810
Mobile 14,222 13,636 65,756 41,766
Other 10,385 5,276 63,295 34,076
Total 995,554 580,010 2,642,107 1,972,906 2023-10-01 2022-10-01 2023-01-01 2022-01-01
2023-12-31 2022-12-31 2023-12-31 2022-12-31
Cost of goods sold 500,679 149,379 980,561 460,407
Selling expenses 159 1,695 3,119 4,506
Administrative expenses 1,161 2,004 6,633 8,585
Total 501,999 153,078 990,312 473,498

YEAR -END REPORT , JANUARY – DECEMBER 2023 21