Paradox Interactive FY2024 Earnings Release

*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 2024

YEAR -END REPORT , JANUARY – DECEMBER 2024 2
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 -down s 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 FOURTH QUARTER
• New downloadable content was release to games
during the period; Götterd ämm erung 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 downloa dable 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, deve loped by
SquarePlay Games and published by Paradox Arc,
was released in 1.0.
• The game Mechabellum, developed by Game River
and publishe d by Paradox Arc, was sold back to
the developer .
• The Board of Directors proposes an ordinary
dividend of SE K 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 1 7 % 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 opera ting
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.

YEAR -END REPORT , JANUARY – DECEMBER 2024 3
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 a ny 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.
In terms of games Hearts of Iron IV’s
Götterdämmerung is the big event of the period,
released in tandem with the game’s first ever
Expansion Pass. We have also released good DLCs of
various sizes for most of our major games. Not least
of all, we started e xpanding Cities: Skylines II’s
content towards the end of the year. We’ve released
free Region Packs and the game’s first paid Content
Creator Packs. In terms of expenses, our
amorti sations and other costs have been at a
relatively low level.
For the full year, the picture is more divided both for
the industry and for us. While we’ve seen a couple of
big successes, many developers and projects in the
industry are facing major challenges with a series of
dire events as a result. In an environment like this, we
cannot sit back and relax but must always strive to be
better. In our own business, the underlying sales in
our game catalog have been good in 2024, and we
have released a lot of good content for our existing
games. At the same time, we hav e also written down
projects and delayed releases to ensure quality.
Against this background, we have worked a lot on
improving in the past year. In particular, we have
worked on strengthening our publishing,
reorganizing our work with third -party developm ent,
better managing our risk -taking and creating the best
conditions for our own development, and especially
focusing on games we know well. Meanwhile,
Paradox Arc, our experimental workshop, is exploring
other ways to broaden our range of engaging games
in a financially controlled manner.
While our focus remains on developing our core
business, the current market creates opportunities
for strategic acquisitions. At the same time, we
remain cautious and meticulous in our decisions.
Haemimont Games, an acquisition which we
announced today, is a good example. It is a very
skilled studio with long experience, deep knowledge
and a close -knit team that complements our core
business, and whom we already know well.
Finally, we have a very exciting 2025 ahead of us and
we are more motivated than ever to deliver fantastic
gaming experiences.
Fredrik Wester, CEO

YEAR -END REPORT , JANUARY – DECEMBER 2024 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 relations hip to its players, the company creates the strategy and management segments’
best gaming experiences.
The group consists of publishing business and five studios in five countries that develop gaming experiences for the
company’s six million monthly active players. Amongst its most important active games are Cities: Skylines, 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
Mil lion MAU

8
Games in pipeline
34 %
R12 profit margin
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 0
200
400
600
800
1,000
1,200
Revenues Operating profit

YEAR -END REPORT , JANUARY – DECEMBER 2024 5
RELEASE S IN THE PERIOD

HEARTS OF IRON IV: GÖTTERDÄMMERUNG
Release date : 14 November 2024
Plat forms : PC
Pri ce: USD 24.99
Description : Build the industrial and research foundation to survive the world’s
greatest conflict In Hearts of Iron IV: Götterdämmerung. In this expansion, players
can write new histories of Germany, Austria, Hungary, Belgium, and Congo. Pursue
exciting new research and military options, opening new paths for devastating new
weapons and dramat ic raids on strategic targets.
Publisher : Paradox Interactive
Developer : Paradox Development Studio

CRUSADER KINGS III: WANDERING NOBLES
Release date: 4 November 2024
Platforms: PC
Price: USD 4.99
Description: Learn more about the world and put this knowledge to productive use
in Wandering Nobles, a new event pack for Crusader Kings III. Develop your
character through a new Wandering Lifestyle option, designed for less sedentary
people. New events will happen to characters as they travel, opening new story –
telling possibilities.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

CRUSADER KINGS III CONSOLE EDITION: TOURS AND TOURNAMENTS
Release date: 18 November 2024
Platforms: Xbox Series X|S, PlayStation 5
Price: USD 29.99
Description: Life is a journey of chivalric adventure, so why don’t you embrace
yours, ruler? Create your very own epic story with the major expansion, Crusader
Kings III: Tours & Tournaments. Be awed by the sights and events that await you,
from bold, mock combat in t he jousting area to adventuring perilous wilds with your
royal entourage.
Publisher: Paradox Interactive
Developer: Paradox Development Studio and Dragons Lake (port)

YEAR -END REPORT , JANUARY – DECEMBER 2024 6

STELLARIS: GRAND ARCHIVE
Release date: 29 October 2024
Plat forms : PC
Pri ce: USD 14.99
Description : In the Grand Archive Story Pack, uncover and showcase the rarest
treasures across the cosmos —both living and inanimate. Amass an unparalleled
collection of xeno -geological artifacts, relics of forgotten civilizations, and
untamed space fauna in your Grand Archive.
Publisher : Paradox Interactive
Developer : Paradox Development Studio and Abrakam

STELLARIS CONSOLE EDITION: GALACTIC PARAGONS
Release date : 21 November 2024
Platforms: Xbox One, Playstation 4
Price: USD 14.99
Description: The galactic council is vast and full of personality! Add Galactic
Paragons to your empires and experience a new level of character and story as
great leaders rise to positions of power and follow your lead to the stars. With
exclusive additions to the all -new Council mechanic, leaders who you can shape
to amplify the vision for your empire, new civics, and much more, Galactic
Paragons wil l shape the future in ways the galaxy has never seen before.
Publisher: Paradox Interactive
Developer: Paradox Development Studio and Tantalus Media (port)

STELLARIS CONSOLE EDITION: FIRST CONTACT
Release date: 21 November 2024
Platforms: Xbox One, Playstation 4
Price: USD 14.99
Description: The galaxy is vast and full of wonders, but it’s also full of alien
empires you’re going to encounter, whether you’re ready or not. First Contact
offers a set of new origins and mechanics that give players the chance to tell
stories about their civilizations’ early encounters with visitors from the stars —
ones that may not have come in peace!
Publisher: Paradox Interactive
Developer: Paradox Development Studio and Tantalus Media (port)

YEAR -END REPORT , JANUARY – DECEMBER 2024 7

VICTORIA 3: PIVOT OF EMPIRE
Release date: 21 November 2024
Plat forms : PC
Pri ce: USD 9.99
Description : Pivot of Empire focuses on the societal evolution of India, from
government by a private enterprise to the beginnings of a movement for
independence. Guide the varied cultures of the Indian subcontinent to prosperity and,
potentially, freedom .
Publisher : Paradox Interactive
Developer : Paradox Development Studio

AGE OF WONDERS 4: WAYS OF WAR
Release date: 4 November 2024
Platforms : PC, Xbox Series X|S, PlayStation 5
Pri ce: USD 14.99
Description: Embrace the Oathsworn culture and devote yourself to their warrior’s
code. Deploy disciplined monks and shadowy assassins. Investigate mysterious
happenings that see your fellow Godir replaced by demons and dragons. Lead two new
forms for your factions: th e hulking Ogrekin or the strong Simians.
Publisher: Paradox Interactive
Developer: Triumph Studios

MILLENNIA: ATOMIC AMBITIONS
Release date: 12 November 2024
Platforms: PC
Price: USD 19.99
Description: Unleash the immense power concentrated in the building blocks of the
universe. Explore the prosperity of a radioactively powered retro -future wonderland in
the Age of Atom. Or pursue world domination using the most powerful weapons ever
invented and risk plunging the world into the post -apocalyptic doom of the Age of
Wasteland.
Publisher: Paradox Interactive
Developer: C Prompt Games

YEAR -END REPORT , JANUARY – DECEMBER 2024 8

CITIES: SKYLINES II – CREATOR PACK: MODERN ARCHITECTURE
Release date: 2 December 2024
Plat forms : PC
Pri ce: USD 7.99
Description : Feel the pulse of progress with the Creator Pack ‘Modern Architecture’.
Designed by community creator ‘Richard Shi’, this collection unlocks a wide array of
top -tier service buildings and facilities for both residents and tourists. Transform your
streets w ith sleek cutting -edge aesthetics and let your citizens enjoy everything from
modern education to contemporary art.
Publisher : Paradox Interactive
Developer : Richard Shi

CITIES: SKYLINES II – CREATOR PACK: URBAN PROMENADES
Release date: 2 December 2024
Platforms: PC
Price: USD 7 .99
Description : Step into the vibrant heart of city life with the Creator Pack ‘Urban
Promenades’. Designed by the community creator ‘Feindbold’, this pack captures the
essence of city living. Featuring a variety of service buildings and a mixed housing
zone, this pack invites you to create bustling streetscapes and serene public spaces
that pulse with urban energy.
Publisher : Paradox Interactive
Developer : Feindbold

CITIES: SKYLINES – CONTENT CREATOR PACK: MOUNTAIN VILLAGE
Release date : 24 Oc tober 2024
Plat forms : PC, Xbox One, Xbox Series X|S, Playstation 4, PlayStation 5
Pri ce: USD 5.99
Description : Embrace the charm of mountainous living with the “Mountain Village”
pack from community creator Tomas13TO. This Content Creator Pack introduces 45
new buildings that capture the essence of life in a serene mountain village. The
amenities range from hotels and lodges to service buildings and restaurants,
enhancing the mountain village ambiance.
Publisher : Paradox Interactive
Developer : Tomas13TO

YEAR -END REPORT , JANUARY – DECEMBER 2024 9

CITIES: SKYLINES – CONTENT CREATOR PACK: MAP PACK 3
Release date : 24 Oc tober 2024
Plat forms : PC, Xbox One, Xbox Series X|S, Playstation 4, PlayStation 5
Price: USD 5.99
Description : Get ready to elevate your city with “Map Pack 3” from the community
creator TeddyRadko. This Content Creator Pack introduces new maps, each inspired
by breathtaking mountain landscapes. From towering peaks to serene valleys, these
maps provide the perfect canvas for creating your next mountain -themed
municipality. Explore the possibilities of the mountains with new sc enarios as well as
new intersections.
Publisher : Paradox Interactive
Developer : TeddyRadko

TLATOANI (EARLY ACCESS)
Release date : 31 October 202 4
Plat forms : PC
Pri ce: USD 19.50
Description : Shape the history of the Aztec Civilization, one legendary city at a time.
From a single metropolis, to multiple city -states and finally an empire. Conquer the
wilderness of Mesoamerica, build a nation and rise as its destined emperor – Tlatoani.
Publisher : Paradox Arc
Developer : Perspective Games and Bellwood Studios

SPACE TRASH SCAVENGER 1.0
Release date : 14 November 2024
Plat forms : PC
Pri ce: USD 19.99
Description : Grab your jetpack and explore procedural asteroid fields, derelict
spaceships and abandoned outposts. Build and automate 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 2024 10
FINANCIAL OVERVIEW
REVENUE AND PROFIT FOURTH QUARTER
Revenues amounted to MSEK 709.1 (MSEK 995.6), a
decrease by 29 % compared to the same period last
year. 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 were released during the
period; Tours and Tournam ents 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.
Revenues in the quarter are mainly attributable to
Cities: Skylines, Cities: Skylines II, Crusader Kings III,
Hearts of Iron IV and Stellaris. The decrease in revenue
from last ye ar is mainly due to the new games Cities:
Skylines II and The Lamplighters League being
released in the comparison period.
Cost of goods sold amounted to MSEK 262.7 (MSEK
712.0 ), 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
91.4 (MSEK 295.5 ). Amortisation has decreased mainly
because of The Lamplighters League amortisations
amounting to MSEK 149.6 in the comparison period .
Write -downs for the period within cost of goods sold
amount to MSEK 0.0 (MSEK 175.8 ). Last year’s write –
downs included write -downs on The Lamplighters
League amounting to MSEK 170.9 .

Amortisations of licenses, brands, and similar rights
amounted to MSEK 13. 8 (MSEK 18.8 ).
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 150.1 (MSEK
211.5 ) was expensed regarding non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs.
Non -capitalised development costs and c osts for
development support, operation and maintenance of
games increased marginally compared to the
comparison period.
Royalties and revenue -based earn -outs have
decreased compared to the comparison period due to
lower sales of royalty generating games.
Selling expenses for the period amounted to MSEK 58.5
(MSEK 87.6 ). The decrease is related to the comparison
period including costs in connection with the release
of Cities: Skylines II and The Lamplighters League.
Administrative expenses for the period amounted to
MSEK 2 5.0 (MSEK 2 7.3 ). Costs for administration are
generally unchanged over time and are relatively
unaffected by other operations . 0
50
100
150
200
250
Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Write-downs

YEAR – END REPORT , JANUARY – DECEMBER 2024 11

Other income amounted to MSEK 32.9 (MSEK 2.1 ), and
other expenses to MSEK – 0.5 (MSEK – 46.9 ). 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. Other income also
includes the sale of the game Mechabellum back to the
developer Game River .
Operating profit amounted to MSEK 395.3 (MSEK
123.9 ).
Financial income amounted to MSEK 9. 5 (MSEK 9.3 )
and mainly consists of interest income from bank
accounts. Financial expenses amounted to MSEK 0. 4
(MSEK 1.9 ) and consists of calculated interest on lease
liabilities.
Profit after financial items amounted to MSEK 404.3
(MSEK 131.3 ), and profit after tax amounted to MSEK
310.8 (MSEK 98.3 ).
FINANCIAL POSITION
Capitalised development amounted to MSEK 1, 454 .3
(MSEK 1, 463.2 ) 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.
Licenses, brands, and similar rights amounted to MSEK
52.7 (MSEK 1 05.5 ).
Goodwill amounted to MSEK 2 3.1 (MSEK 2 2.4 )
a ttributable to the acquisition of Iceflake Studios.
Right – of – use assets for offices amounted to MSEK 69.7
(MSEK 1 12.5 ) .
Accounts receivable amounted to MSEK 2 80.1 (MSEK
358.2 ).
Cash and cash equivalents amounted to MSEK 1, 469.4
(MSEK 1,098.0 ).
Equity amounts to MSEK 2, 909.6 (MSEK 2, 620.5 ).
Long – term lease liabilities amount to MSEK 33.9 (MSEK
76.0 ) consisting of liabilities for office premises.
Deferred tax liabilities amount to MSEK 1 63.5 (MSEK
1 44.0 ), mainly relating to untaxed reserves and
intangible assets from acquisitions.
Short – term lease liabilities amount to MSEK 30. 9
(MSEK 32. 6 ) consisting of short – term liabilities for
office premises.
Accrued expenses and prepaid income amount to
MSEK 326.1 (MSEK 4 93 . 9 ) by the end of the period.
Prepaid income has decreased compared to the
previous year following the releases of downloadable
content to Cities : Skylines II . Accruals for royalty to
game developers has also decreased compared to last
year.
CASH FLOW FOURTH QUARTER
Cash flow from operating activities amounted to MSEK
441.8 (MSEK 525.5 ), primarily attributable to the
operating profit, adjusted for depreciation, 0100200300400500600700800900Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 COGS Selling expenses Administrative expenses 02004006008001,0001,2001,4001,6001,8002,000Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Capitalised development costs

YEAR -END REPORT , JANUARY – DECEMBER 2024 12
amortisation and write -downs. Cash flow from
investing activities amounted to MSEK -158.9 (MSEK
-146.6 ). Cash flow from financing activities amounted
to MSEK -9.7 (MSEK -10.1 ) relating mainly to
amortisation of lease liabilities for office premises.
FULL YEAR IN SUMMARY
Revenues amounted to MSEK 2,200.9 (MSEK 2,642.1 ) a
decrease by 17 % compared to the same period last
year. Cost of goods sold amounted to MSEK 1,203.6
(MSEK 1,567.3 ), 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 208.0
(MSEK 185.4 ). Operating profit amounted to MSEK
721.4 (MSEK 657.9 ), a n increase by 10 %. Profit after
financial items amounted to MSEK 757.3 (MSEK 687.8 ),
and profit after tax amounted to MSEK 584.6 (MSEK
530.6 ). Cash flow from operating activities amounted
to MSEK 1,123.5 (MSEK 1,451.8 ). Cash flow from
investing activities amounted to MSEK -403.2 (MSEK
-848.3 ). Cash flow from investing activities included
cash flow from investments in bonds amounting to
MSEK 200.5 (MSEK -195.3). Cash flow from financing
activities amounted to MSEK -355.2 (MSEK -249.0 ).
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 FOURTH 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 712.9 (MSEK 1,002.3 ). Operating profit amounted
to MSEK 485.5 (MSEK 12.7 ). Profit after financial items
amounted to MSEK 509.7 (MSEK 19.8 ). Profit after tax
amounted to MSEK 391.9 (MSEK 89.8 ).
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 entitie s.
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
corr esponds 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
discoun ting 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 3, page 3 2. 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 impa ct on
the group’s financial position and results .
DIVIDEND PROPOSAL
The Board proposes a dividend to shareholders of SEK
3.00 per share and a special dividend of SEK 2.00 per
share . The Board of Directors proposes Friday , May 16,
202 5 as record date. If the Annual General Meeting
approves the proposal, the dividend will be distributed
by Euroclear Sweden AB on Wednesday May 21, 202 5.

YEAR -END REPORT , JANUARY – DECEMBER 2024 13
FINANCIAL CALENDAR
Annual report 2024 2025 -04-09
Interim report January -March 2025 2025 -04-24
Annual General Meeting 2025 2025 -05-14
Interim report January -June 2025 2025 -08-07
Interim report January -September 2025 2025 -10-23
Year -end report 2025 2026 -01-29
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 provides 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 6 February 202 5

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 6 February
202 5.

YEAR -END REPORT , JANUARY – DECEMBER 2024 14
KEY FIGURES FOR THE GROUP

For definitions of key figures, see the annual report. 2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
Revenues, KSEK 709,095 995,554 2,200,943 2,642,107
Operating profit, KSEK 395,260 123,907 721,364 657,868
Profit after financial items, KSEK 404,295 131,273 757,303 687,759
Profit after tax, KSEK 310,820 98,268 584,628 530,625
Operating margin 56% 12% 33% 25%
Profit margin 57% 13% 34% 26%
Equity/assets ratio 82% 73% 82% 73%
Equity per share before dilution, SEK 27.55 24.81 27.55 24.81
Equity per share after dilution, SEK 27.55 24.75 27.55 24.75
Earnings per share before dilution, SEK 2.94 0.93 5.54 5.02
Earnings per share after dilution, SEK 2.94 0.93 5.53 4.99
Number of shares by the end of the period before dilution 105,623,025 105,623,025 105,623,025 105,623,025
Number of shares by the end of the period after dilution 105,623,025 105,885,175 105,623,025 105,885,175
Average number of shares before dilution 105,623,025 105,623,025 105,623,025 105,621,117
Average number of shares after dilution 105,722,702 105,799,356 105,656,190 106,153,901
Average number of employees 574 622 587 649

YEAR -END REPORT , JANUARY – DECEMBER 2024 15
GROUP INCOME STATEMENT (K SEK)

OTHER COMPREHENSIVE INCOME (K SEK)

2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
Revenues 709,095 995,554 2,200,943 2,642,107
Cost of goods sold -262,682 -711,982 -1,203,649 -1,567,321
Gross profit 446,413 283,572 997,294 1,074,786
Selling expenses -58,534 -87,585 -223,881 -291,180
Administrative expenses -25,008 -27,290 -99,653 -99,225
Other income 32,883 2,136 58,294 20,916
Other expenses -494 -46,926 -10,690 -47,428
Operating profit 395,260 123,907 721,364 657,868
Profit from shares in associated companies – – – 15,440
Financial income 9,470 9,288 42,103 25,086
Financial expense -435 -1,922 -6,165 -10,635
Profit after financial items 404,295 131,273 757,303 687,759
Tax -93,475 -33,005 -172,675 -157,134
Profit for the period 310,820 98,268 584,628 530,625
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 2.94 0.93 5.54 5.02
Earnings per share after dilution, SEK 2.94 0.93 5.53 4.99 2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
Profit for the period 310,820 98,268 584,628 530,625
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences 6,002 -5,191 9,511 2,493
Other comprehensive income 6,002 -5,191 9,511 2,493
Total comprehensive income for the period 316,822 93,077 594,139 533,118
Profit for the period is attributable to the shareholders of the parent company.

YEAR -END REPORT , JANUARY – DECEMBER 2024 16
GROUP BALANCE SHEET (K SEK)

2024-12-31 2023-12-31
ASSETS
Non-current assets
Capitalised development 1,454,313 1,463,202
Licenses, brands and similar rights 52,655 105,532
Goodwill 23,137 22,350
Property and equipment 8,318 13,034
Right-of-use assets 69,679 112,515
Other long term assets 18,736 18,691
Total non-current assets 1,626,838 1,735,323
Current assets
Accounts receivable 280,056 358,219
Tax assets 62,136 63,251
Other receivables 10,466 70,420
Prepaid expenses and accrued revenue 83,498 57,837
Bonds – 197,051
Cash and cash equivalents 1,469,356 1,098,025
Total current assets 1,905,512 1,844,803
TOTAL ASSETS 3,532,350 3,580,126 EQUITY AND LIABILITIES
Equity
Share capital 528 528
Other capital contributed 29,748 29,748
Reserves 32,194 22,684
Retained earnings 2,847,170 2,567,495
Total equity 2,909,640 2,620,455
Long-term liabilities
Lease liabilities 33,911 75,997
Deferred tax liabilities 163,460 144,044
Total long-term liabilities 197,372 220,041
Current liabilities
Accounts payable 45,842 52,481
Current tax liabilities 852 95,427
Lease liabilities 30,875 32,583
Other liabilities 21,697 65,275
Accrued expenses and prepaid revenues 326,073 493,864
Total current liabilities 425,339 739,630
TOTAL EQUITY AND LIABILITIES 3,532,350 3,580,126

YEAR -END REPORT , JANUARY – DECEMBER 2024 17
CHANGE IN GROUP EQUITY (K SEK)

Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2024-01-01 528 29,748 22,684 2,567,495 2,620,455
Profit for the period 584,628 584,628
Other comprehensive income
Translation difference 9,511 9,511
Total other comprehensive income – – 9,511 – 9,511
Total comprehensive income – – 9,511 584,628 594,139
Transactions with owners
Share-based payments staff – – – 11,915 11,915
Dividends – – – -316,869 -316,869
Total transactions with owners – – – -304,954 -304,954
AT THE END OF THE PERIOD 2024-12-31 528 29,748 32,194 2,847,170 2,909,640 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 – 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 – 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

YEAR -END REPORT , JANUARY – DECEMBER 2024 18
GROUP CASH FLOW STATEMENT (K SEK)

2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
Cash flow from operations
Operating profit 395,260 123,907 721,364 657,868
Adjustment of depreciation, amortisation and write-downs 115,474 501,999 710,513 990,312
Other adjustments 2,836 4,424 12,002 6,079
Interest received 27,575 9,288 38,705 25,086
Interest paid -435 -1,922 -6,165 -10,635
Tax paid -62,912 -30,527 -248,071 -184,436
Cash flow before changes in working capital 477,798 607,170 1,228,348 1,484,275
Changes in working capital
Change in current receivables -30,306 -147,689 112,792 -138,630
Change in current liabilities -5,695 66,035 -217,620 106,196
Cash flow from current operations 441,797 525,516 1,123,520 1,451,842
Investing activities
Cash flow from sales of associated companies – – – 53,174
Investments in capitalised development -158,299 -122,100 -602,509 -676,045
Investments in licenses, brands and similar rights – -27,103 – -27,103
Investments in equipment -554 -229 -1,161 -3,050
Investments in bonds – -138,287 – -336,355
Sales of bonds – 141,100 200,450 141,100
Cash flow from investing activities -158,853 -146,619 -403,220 -848,278
Financing activities
Amortisation of lease liability -9,652 -10,141 -38,300 -37,722
Paid dividend – – -316,869 -211,238
Cash flow from financing activities -9,652 -10,141 -355,169 -248,960
Cash flow for the period 273,293 368,757 365,130 354,603
Cash and cash equivalents at the beginning of the period 1,190,355 734,902 1,098,025 747,506
Exchange rate effect 5,710 -5,634 6,202 -4,084
Cash and cash equivalents at the end of the period 1,469,356 1,098,025 1,469,356 1,098,025

YEAR -END REPORT , JANUARY – DECEMBER 2024 19
PARENT COMPANY INCOME STATEMENT (K SEK)

2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
Revenues 712,932 1,002,300 2,214,766 2,647,805
Cost of goods sold -178,863 -832,574 -1,499,633 -1,962,066
Gross profit 534,068 169,727 715,133 685,739
Selling expenses -56,337 -82,574 -208,704 -272,670
Administrative expenses -24,861 -28,703 -97,960 -99,437
Other income 32,591 1,199 56,892 15,260
Other expenses – -46,926 -9,718 -46,926
Operating profit 485,461 12,723 455,642 281,967
Profit from shares in subsidiaries 16,981 – -58,750 –
Profit from shares in associated companies – – – 35,381
Financial income 7,245 8,071 36,429 20,769
Financial expense -2 -1,002 -704 -7,003
Profit after financial items 509,686 19,792 432,618 331,113
Year-end appropriations -10,000 100,000 -10,000 100,000
Tax -107,741 -29,946 -114,716 -97,573
Profit for the year and total income for the year 391,946 89,846 307,902 333,541

YEAR -END REPORT , JANUARY – DECEMBER 2024 20
PARENT COMPANY BALANCE SHEET (KSEK)

2024-12-31 2023-12-31
ASSETS
Non-current assets
Capitalised development 984,669 1,098,525
Licenses, brands and similar rights 23,340 34,855
Property and equipment 1,715 6,143
Shares in subsidiaries 203,908 305,812
Other long term assets 17,393 17,393
Total non-current assets 1,231,024 1,462,726
Current assets
Accounts receivable 272,841 350,400
Receivables from group companies 198,836 19,144
Tax assets 35,600 58,560
Other receivables 5,102 65,968
Prepaid expenses and accrued revenues 89,747 64,945
Bonds – 197,051
Cash and cash equivalents 1,131,589 780,059
Total current assets 1,733,714 1,536,126
TOTAL ASSETS 2,964,738 2,998,853 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528
Capitalised development reserve 984,669 1,098,525
Non-restricted equity
Share premium reserve 29,748 29,748
Retained earnings 566,011 423,566
Profit for the period 307,902 333,541
Total equity 1,888,859 1,885,908
Untaxed reserves 755,000 605,000
Current liabilities
Accounts payable 35,954 43,965
Liabilities to group companies 22,681 25,393
Other liabilities 4,282 4,122
Accrued expenses and prepaid revenues 257,962 434,465
Total current liabilities 320,879 507,944
TOTAL EQUITY AND LIABILITIES 2,964,738 2,998,853

YEAR -END REPORT , JANUARY – DECEMBER 2024 21
NOTE S (K SEK)
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 627.8 (MSEK 718.2 ) and MSEK 1, 868.0 (MSEK 1, 902.5 ) of the group’s revenue came
from one and the same platform – Steam .
Group revenue divided into major product categories;

NOTE 2. DEPRECIATIONS, AMORTISATIONS AND WRITE -DOWNS BREAKDOWN PER FUNCTION

2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
USA 618,596 859,017 1,905,078 2,285,109
Sweden 17,148 22,454 65,395 49,873
Rest of Europe 61,704 96,212 192,576 258,575
Rest of the World 11,647 17,871 37,893 48,550
Total 709,095 995,554 2,200,943 2,642,107 2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
PC 639,237 891,943 1,924,843 2,202,494
Console 52,492 79,004 204,225 310,562
Mobile 12,320 14,222 50,980 65,756
Other 5,046 10,385 20,895 63,295
Total 709,095 995,554 2,200,943 2,642,107 2024-10-01 2023-10-01 2024-01-01 2023-01-01
2024-12-31 2023-12-31 2024-12-31 2023-12-31
Cost of goods sold 112,592 500,679 698,446 980,561
Selling expenses 1,031 159 3,869 3,119
Administrative expenses 1,852 1,161 8,198 6,633
Total 115,474 501,999 710,513 990,312