Paradox Interactive FY2024 Q1 Earnings Release

Apr, 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.

INTERIM REPORT
JANUAR Y – MAR CH 202 4

INTERIM REPORT , JANUARY – MARCH 2024 2

INTERIM REPORT
JANUARY – MARCH 2024

FIRST QUARTER
• Revenues amounted to MSEK 482.1 (MSEK 482.8 ),
in level with the same period last year .
• Operating profit amounted to MSEK 154.4 (MSEK
155.7 ), a decrease by 1 %.
• Profit after financial items amounted to MSEK
165.0 (MSEK 157.1 ), and profit after tax amounted
to MSEK 126.9 (MSEK 123.7 ).
• Cash flow from operating activities amounted to
MSEK 136.9 (MSEK 244. 6), and cash flow from
investing activities amounted to MSEK -47.9
(MSEK -170.1 ). Cash flow from investing activities
includes a positive effect of MSEK 130.5 (MSEK 0.0)
from sales of short -term investments in bonds .
• By the end of the period cash amounted to MSEK
1,181.8 (MSEK 812.7) .
• Earnings per share before dilution amounted to
SEK 1.20 (SEK 1. 17) and after dilution SEK 1.20
(SEK 1. 16).
• Revenues in the quarter are mainly attributable to
Cities : Skylines, Cities: Skylines II, Crusader Kings
III, Hearts of Iron IV, and Stellaris .
IMPORTANT EVENTS IN THE FIRST QUARTER
• Millennia, developed by C Prompt Games, was
released to PC.
• New downloadable content was released to games
during the period ; Legends of the Dead to Crusader
Kings III, T rial of Allegiance to Hearts of Iron IV,
Primal Fury to Age of Wonders 4 and Beach
Properties to Cities: Skylines II.
• New ports were released during the period , Across
the Obelisk to Nintendo Switch.
• The new game Prison Architect 2 , developed by
Double Eleven, was announced .

INTERIM REPORT , JANUARY – MARCH 2024 3
COMMENTS BY THE CEO
Our core business has held a strong pace during the
first period of the year, with good underlying sales,
which gives a good result. We have a very strong
foundation with a large cash position and a solid
recurring cash flow . This gives us a good position for
taking advantage of the opportunities that open up
in a games market that is turbulen t at the moment .
We have areas where we need to do better, not least,
our games must maintain a good and consistent
quality. In Cities: Skylines II in particular, we are well
aware that lately we have not met the players’
expectations in this area; this will not stay the case.
We have an amazing asset in our loyal player base
whose great commitment makes our games what
they are, and we are putting a lot of effort into giving
them the game that they deserve.
In the quarter, we released Millennia, our first
historical 4X game. Although the initial reception was
mixed, it’s clear that many players appreciated the
game’s core mechanics, and we believe that there is
a lot of potential to develop. The game was also
important in another aspect: it is our first step into a
new niche that we have been interested in for a long
time, and the release gives us many new insights
about both the players and the game type, creating a
base from which we can continue to evolve i n the
genre.
The rest of the year will be exciting. In the near future
we have a good range of expansions planned for our
games and we will release both Foundry and Life by
You in Early Access. Both games are, in different
ways, interesting releases in new territories f or us
within the broader management and simulation
genres.
We know what our growth and improvement areas
are, and with our foundation and the teams’
commitment , we look forward to what is ahead of us.

Fredrik Wester, CEO

INTERIM REPORT , JANUARY – MARCH 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 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 +
Mil lion MAU

10
Games in pipeline
25 %
R12 profit margin
Rolling 12 month revenues and operating profit

Quarterly revenues and operating profit
0
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3 000
Rolling 12 months revenue Rolling 12 months operating profit -200
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Revenues Operating profit

INTERIM REPORT , JANUARY – MARCH 2024 5
RELEASES IN THE PERIOD

MILLENNIA
Release dat e: 26 March 2024
Platform s: PC
Pri ce: USD 39.99
Description : Create your own nation in Millennia, a historical turn -based 4X game
that challenges your strategic prowess Set the course of history and experience
different timelines in every playthrough as you write an epic story through your
actions .
Publisher : Paradox Interactive
Developer : C Prompt Games

CRUSADER KINGS III: LEGENDS OF THE DEAD
Release dat e: 4 March 2024
Platform s: PC
Price: USD 19.99
Description : What good are grand accomplishments and heroic deeds if no one
sings of them after you have gone? A royal legacy is only useful, after all, if it can
provide cover and legitimacy for those who come after you. Live on in the memory of
your subjects and rivals in Legends of the Dead.
Publisher: Paradox Interactive
Developer : Paradox Development Studio

HEART OF IRON IV: TRIAL OF ALLEGIANCE
Release dat e: 7 March 2024
Platform s: PC
Price: USD 19.99
Description : Write new alternate histories of the globe’s most dramatic conflict in
Trial of Allegiance, a new country pack for Hearts of Iron IV. Explore and dominate a
world where the strife of the Second World War threatens the safety and security of
South American nations.
Publisher: Paradox Interactive
Developer : Paradox Development Studio

INTERIM REPORT , JANUARY – MARCH 2024 6

AGE OF WONDERS 4: PRIMAL FURY
Release dat e: 27 February 2024
Platform s: PC, Xbox Series X|S , Playstation 5
Price: USD 9.99
Description : Harness the power of nature in the Age of Wonders 4: Primal Fury
content pack. Channel the spirit of your favorite animal with the Primal culture, ride
a mammoth or a crocodile into battle, and wield the powers of the Naga lords!
Publisher: Paradox Interactive
Developer : Triumph Studios

CITIES : SKYLINES II: BEAC H PROPERTIES
Release dat e: 25 March 2024
Platform s: PC
Price: USD 9.99
Description : Bring life to your city’s waterfronts with Beach Properties. Specializing
in residential buildings that kiss the water’s edge, this Asset Pack brings the
tranquility and beauty of coastal living to your city.
Publisher: Paradox Interactive
Developer : Colossal Order

ACROSS THE OBELISK (PORT)
Release dat e: 21 March 2024
Platform s: Nintendo Switch
Price: USD 24.99
Description : Set forth in a co -op roguelite deckbuilder where every choice matters!
Craft decks of breathtaking power. Journey alone or with up to three friends. Plot
your party’s path to glory and face powerful enemies in deep tactical combat on
your quest to save the kingdom of Senenthia in Across the Obelisk!
Publisher: Paradox Interactive
Developer: Dreamsite Games

INTERIM REPORT , JANUARY – MARCH 2024 7
FINANCIAL OVERVIEW
REVENUE AND PROFIT FIRST QUARTER
Revenues amounted to MSEK 482.1 (MSEK 482.8), in
level with the same period last year. Millennia,
developed by C Prompt Games, was released to PC.
New downloadable content was released to games
during the period; Legends of the Dead to Crusader
Kings III, Trial of Allegiance to Hearts of Iron IV, Primal
Fury to Age of Wonders 4 and Beach Properties to
Cities: Skylines II. New ports were released during the
period; Across the Obelisk to Nintendo Switch.
Revenues in the quarter are mainly attributable to
Cities : Skyli nes, Cities: Skylines II, Crusader Kings III,
Hearts of Iron IV, and Stellaris .
Cost of goods sold amounted to MSEK 268.1 (MSEK
263.1 ), 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
120.1 (MSEK 109.7 ). Amortisations h ave increased as a
result of releases of new games and downloadable
content .
Write -downs for the period within cost of goods sold
amount to MSEK 0.0 (MSEK 9.6 ).

Amortisations of licenses, brands, and similar rights
amount ed to MSEK 13.6 (MSEK 22.2 ).
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 125.9 (MSEK
112.5 ) was expensed regarding non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs .
Non -capitalised development costs have 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. Costs for development support,
operation and maintenance of games are at level with
the comparison period .
Royalties and revenue based earn -outs have increased
compared to the comparison period due to the release
of Age of Wonders 4, developed by Triumph Studios .
Age of Wonders 4 was released in May 2023 , and is a
part of the revenue based earn -outs for the sellers of
Triumph Studios until April 2026 .
Selling expenses for the period amounted to MSEK 54.7
(MSEK 47.9 )
Administrative expenses for the period amounted to
MSEK 26.0 (MSEK 22.8 ). Costs for administration are
generally unchanged over time and are relatively
unaffected by other operations .

Other income amounted to MSEK 21.7 (MSEK 6.8 ), and
other expenses to MSEK -0.6 (MSEK -0.2 ). Other income
and other expenses consist primarily of exchange rate 0
20
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80
100
120
140
160
180
200
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Write-downs 0
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Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
COGS Selling expenses Administrative expenses

INTERIM REPORT , JANUARY – MARCH 2024 8
effects on the group’s cash and cash equivalents,
operating receivables, and operating liabilities during
the quarter .
Operating profit amounted to MSEK 154. 3 (MSEK
155.7 ).
Financial income amounted to MSEK 12.2 (MSEK
4.5 ) and mainly consists of interest income from bank
accounts and interest income from short -term
investments of excess cash . Financial expense
amounted to MSEK 1.7 (MSEK 3.0) and consists of
calculated interest on lease liabilitie s.
Profit after financial items amounted to MSEK 165.0
(MSEK 157.1 ), and profit after tax amounted to MSEK
126.9 (MSEK 123.7 ).
FINANCIAL POSITION
Capitalised development amounted to MSEK 1,521.7
(MSEK 1,698.8 ) 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
94.4 (MSEK 138.7 ).
Goodwill amounted to MSEK 23.2 (MSEK 2 2.7 )
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for offices amounted to MSEK 98.0
(MSEK 130.2 ).
Shares in associates amount to MSEK 0.0 (MSEK 3 6.7)
by the end of the period, the change is attributable to
the sale of Seattle -based Hardsuit Labs.
Accounts receivable amounted to MSEK 278.1 (MSEK
188.7 ).
Bonds amount to MSEK 68.2 (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 1,181.8
(MSEK 812.7 ).
Equity amounts to MSEK 2,759.8 (MSEK 2,422.6 ).
Long -term lease liabilities amount to MSEK 63.3 (MSEK
97.8 ) consisting of liabilities for office premises.
Deferred tax liabilities amount to MSEK 141.8 (MSEK
130.6 ), mainly relating to untaxed reserves and
intangible assets from acquisitions.
Short -term lease liabilities amount to MSEK 30.3
(MSEK 36.8 ) consisting of short -term liabilities for
office premises .
Accrued expenses and prepaid income amounts to
MSEK 404.8 (MSEK 354.9 ) by the end of the period.
Prepaid revenue is higher compared to the previous
year .
CASH FLOW FIRST QUARTER
Cash flow from operating activities amounted to MSEK
136.9 (MSEK 244.6 ), primarily attributable to the
operating profit , adjusted for depreciation,
amortisation and write -downs . Cash flow from
investing activities amounted to MSEK -47.9 (MSEK –
170.1 ). Cash flow from investing activities includes a
positive effect from sales of short -term investments in
bonds. Cash flow from financing activities amounted
to MSEK -9.4 (MSEK -8.9 ) relating mainly to
amortisation of lease liabilities for office premises .
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 FIRST 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 0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Thousands
Capitalised development costs

INTERIM REPORT , JANUARY – MARCH 2024 9
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 .
The parent company has received a dividend of MSEK
26.1 from th e subsidiary Harebrained Schemes that
that was met by a write -down of shares in subsidiaries
with the same amount . Parent company revenues for
the quarter amounted to MSEK 485.7 (MSEK 482.7 ).
Operating profit amounted to MSEK 72.6 (MSEK 59.6 ).
Profit after financial items amounted to MSEK 83.0
(MSEK 61.3 ). Profit after tax amounted to MSEK 61.6
(MSEK 48.6 ).
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 .

INTERIM REPORT , JANUARY – MARCH 2024 10
FINANCIAL CALENDAR
Annual General Meeting 202 4
Interim report January -June 202 4
Interim report January -September 202 4
Year -end report 202 4
202 4-05-15
202 4-07-25
202 4-10-31
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 April 25, 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 CE ST
on 25 April 2024 .

INTERIM REPORT , JANUARY – MARCH 2024 11
KEY FIGURES FOR THE GROUP

For definitions of key figures, see the annual report. 2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
Revenues, KSEK 482,099 482,777 2,642,107
Operating profit, KSEK 154,370 155,699 657,868
Profit after financial items, KSEK 164,957 157,138 687,759
Profit after tax, KSEK 126,864 123,711 530,625
Operating margin 32% 32% 25%
Profit margin 34% 33% 26%
Equity/assets ratio 78% 75% 73%
Equity per share before dilution, SEK 26.13 22.94 24.81
Equity per share after dilution, SEK 26.13 22.76 24.75
Earnings per share before dilution, SEK 1.20 1.17 5.02
Earnings per share after dilution, SEK 1.20 1.16 4.99
Number of shares by the end of the period before dilution 105,623,025 105,619,209 105,623,025
Number of shares by the end of the period after dilution 105,623,025 106,424,759 105,885,175
Average number of shares before dilution 105,623,025 105,619,209 105,621,117
Average number of shares after dilution 105,656,009 105,870,901 106,153,901
Average number of employees 594 665 649

INTERIM REPORT , JANUARY – MARCH 2024 12
INCOME STATEMENT , GROUP (K SEK)

OTHER COMPREHENSIVE INCOME , GROUP (KSEK)

2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
Revenues 482,099 482,777 2,642,107
Cost of goods sold -268,070 -263,072 -1,567,321
Gross profit 214,029 219,706 1,074,786
Selling expenses -54,672 -47,855 -291,180
Administrative expenses -26,046 -22,838 -99,225
Other income 21,694 6,842 20,916
Other expenses -635 -155 -47,428
Operating profit 154,370 155,699 657,868
Profit from shares in associated companies – – 15,440
Financial income 12,244 4,466 25,086
Financial expense -1,657 -3,027 -10,635
Profit after financial items 164,957 157,138 687,759
Tax -38,093 -33,427 -157,134
Profit for the period 126,864 123,711 530,625
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 1.20 1.17 5.02
Earnings per share after dilution, SEK 1.20 1.16 4.99 2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
Profit for the period 126,864 123,711 530,625
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences 8,922 4,737 2,493
Other comprehensive income 8,922 4,737 2,493
Total comprehensive income for the period 135,785 128,449 533,118
Profit for the period is attributable to the shareholders of the parent company.

INTERIM REPORT , JANUARY – MARCH 2024 13
BALANCE SHEET , GROUP (KSEK)

2024-03-31 2023-03-31 2023-12-31
ASSETS
Non-current assets
Capitalised development 1,521,718 1,698,824 1,463,202
Licenses, brands and similar rights 94,428 138,666 105,532
Goodwill 23,214 22,713 22,350
Property and equipment 11,659 16,942 13,034
Right-of-use assets 97,954 130,156 112,515
Investments in associates – 36,708 –
Other long term assets 18,741 18,712 18,691
Total non-current assets 1,767,714 2,062,720 1,735,323
Current assets
Accounts receivable 278,098 188,651 358,219
Tax assets 7,207 36,953 63,251
Other receivables 156,331 43,967 70,420
Prepaid expenses and accrued revenue 88,752 69,452 57,837
Bonds 68,247 – 197,051
Cash and cash equivalents 1,181,826 812,708 1,098,025
Total current assets 1,780,462 1,151,731 1,844,803
TOTAL ASSETS 3,548,176 3,214,451 3,580,126 EQUITY AND LIABILITIES
Equity
Share capital 528 528 528
Other capital contributed 29,748 29,542 29,748
Reserves 31,605 29,914 22,684
Retained earnings 2,697,927 2,362,637 2,567,495
Total equity 2,759,808 2,422,621 2,620,455
Long-term liabilities
Lease liabilities 63,341 97,794 75,997
Deferred tax liabilities 141,754 130,640 144,044
Total long-term liabilities 205,095 228,434 220,041
Current liabilities
Accounts payable 74,798 52,779 52,481
Current tax liabilities 13,820 83,300 95,427
Lease liabilities 30,303 36,751 32,583
Other liabilities 59,568 35,688 65,275
Accrued expenses and prepaid revenues 404,783 354,877 493,864
Total current liabilities 583,273 563,395 739,630
TOTAL EQUITY AND LIABILITIES 3,548,176 3,214,451 3,580,126

INTERIM REPORT , JANUARY – MARCH 2024 14
CHANGE IN GROUP EQUITY (KSEK)

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 126,864 126,864
Other comprehensive income
Translation difference 8,922 8,922
Total other comprehensive income – – 8,922 – 8,922
Total comprehensive income – – 8,922 126,864 135,785
Transactions with owners
Share-based payments staff – – – 3,568 3,568
Total transactions with owners – – – 3,568 3,568
AT THE END OF THE PERIOD 2024-03-31 528 29,748 31,605 2,697,927 2,759,808 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 123,711 123,711
Other comprehensive income
Translation difference 4,737 4,737
Total other comprehensive income – – 4,737 – 4,737
Total comprehensive income – – 4,737 123,711 128,449
Transactions with owners
Share-based payments staff – – – 1,795 1,795
Total transactions with owners – – – 1,795 1,795
AT THE END OF THE PERIOD 2023-03-31 528 29,542 29,914 2,362,637 2,422,621

INTERIM REPORT , JANUARY – MARCH 2024 15
CASH FLOW STATEMENT , GROUP (KSEK)

2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
Cash flow from operations
Operating profit 154,370 155,699 657,868
Adjustment of depreciation, amortisation and write-downs 144,808 153,617 990,312
Other adjustments 3,488 -2,215 6,079
Interest received 869 4,466 25,086
Interest paid -1,657 -3,027 -10,635
Tax paid -66,476 -56,881 -184,436
Cash flow before changes in working capital 235,402 251,659 1,484,275
Changes in working capital
Change in current receivables -26,184 54,647 -138,630
Change in current liabilities -72,308 -61,682 106,196
Cash flow from current operations 136,910 244,624 1,451,842
Investing activities
Cash flow from sales of associated companies – – 53,174
Investments in capitalised development -178,241 -169,135 -676,045
Investments in licenses, brands and similar rights – – -27,103
Investments in equipment -74 -924 -3,050
Investments in bonds – – -336,355
Sales of bonds 130,450 – 141,100
Cash flow from investing activities -47,865 -170,059 -848,278
Financing activities
Amortisation of lease liability -9,493 -8,917 -37,722
Paid dividend – – -211,238
Cash flow from financing activities -9,493 -8,917 -248,960
Cash flow for the period 79,553 65,648 354,603
Cash and cash equivalents at the beginning of the period 1,098,025 747,506 767,561
Exchange rate effect 4,249 -445 -4,084
Cash and cash equivalents at the end of the period 1,181,826 812,708 1,098,025

INTERIM REPORT , JANUARY – MARCH 2024 16
INCOME STATEMENT , PARENT COMPANY (KSEK)

2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
Revenues 485,688 482,655 2,647,805
Cost of goods sold -357,209 -358,992 -1,962,066
Gross profit 128,479 123,663 685,739
Selling expenses -51,286 -44,267 -272,670
Administrative expenses -25,717 -22,316 -99,437
Other income 21,431 2,522 15,260
Other expenses -277 – -46,926
Operating profit 72,630 59,602 281,967
Profit from shares in associated companies – – 35,381
Financial income 11,063 3,667 20,769
Financial expense -701 -2,001 -7,003
Profit after financial items 82,992 61,269 331,113
Year-end appropriations – – 100,000
Tax -21,369 -12,621 -97,573
Profit for the year and total income for the year 61,623 48,648 333,541

INTERIM REPORT , JANUARY – MARCH 2024 17
BALANCE SHEET , PARENT COMPANY (KSEK)

2024-03-31 2023-03-31 2023-12-31
ASSETS
Non-current assets
Capitalised development 1,131,625 1,406,826 1,098,525
Licenses, brands and similar rights 31,976 30,962 34,855
Property and equipment 4,769 9,405 6,143
Shares in subsidiaries 279,742 305,812 305,812
Investments in associates – 16,766 –
Other long term assets 17,393 17,393 17,393
Total non-current assets 1,465,505 1,787,164 1,462,726
Current assets
Accounts receivable 269,056 178,680 350,400
Receivables from group companies 1,421 1,805 19,144
Tax assets 3,657 36,953 58,560
Other receivables 131,759 37,477 65,968
Prepaid expenses and accrued revenues 94,875 66,817 64,945
Bonds 68,247 – 197,051
Cash and cash equivalents 1,102,936 652,021 780,059
Total current assets 1,671,951 973,751 1,536,126
TOTAL ASSETS 3,137,456 2,760,915 2,998,853 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528 528
Capitalised development reserve 1,131,625 1,406,826 1,098,525
Non-restricted equity
Share premium reserve 29,748 29,542 29,748
Retained earnings 727,574 317,321 423,566
Profit for the period 61,623 48,646 333,541
Total equity 1,951,099 1,802,863 1,885,908
Untaxed reserves 605,000 485,000 605,000
Current liabilities
Accounts payable 66,122 43,919 43,965
Liabilities to group companies 172,705 147,618 25,393
Other liabilities 3,854 3,610 4,122
Accrued expenses and prepaid revenues 338,677 277,905 434,465
Total current liabilities 581,357 473,051 507,944
TOTAL EQUITY AND LIABILITIES 3,137,456 2,760,915 2,998,853

INTERIM REPORT , JANUARY – MARCH 2024 18
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 MSEK 380.6 (MSEK 313.8 ) of the group’s revenue came from one and the same platform .
Group revenue divided into major product categories ;

Prepaid revenue amounted to MSEK 239.6 (MSEK 191.5 ) at the end of the period. Of these, MSEK 239.6 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 include MSEK 60.6 (MSEK 89.6 ) which were included in prepaid revenue at the beginning of the period .

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

2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
USA 405,762 424,456 2,285,109
Sweden 18,516 2,069 49,873
Rest of Europe 49,686 44,877 258,575
Rest of the World 8,135 11,376 48,550
Total 482,099 482,777 2,642,107 2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
PC 404,348 389,954 2,202,494
Console 57,729 56,954 310,562
Mobile 13,173 18,174 65,756
Other 6,849 17,695 63,295
Total 482,099 482,777 2,642,107 2024-01-01 2023-01-01 2023-01-01
2024-03-31 2023-03-31 2023-12-31
Cost of goods sold 142,195 150,557 980,561
Selling expenses 889 1,075 3,119
Administrative expenses 1,723 1,986 6,633
Total 144,808 153,617 990,312

INTERIM REPORT , JANUARY – MARCH 2024 19