Paradox Interactive FY2024 Q2 Earnings Release

Jul, 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 – JUN E 2024

INTERIM REPORT , JANUARY – JUNE 2024 2

INTERIM REPORT
JANUARY – JUNE 2024

SECOND QUARTER
• Revenues amounted to MSEK 575.8 (MSEK 737.3 ),
a decrease by 22 % compared to the same period
last year.
• Operating profit amounted to MSEK 28.9 (MSEK
292.9 ), a decrease by 90 %. Write -downs of MSEK
208.0 (MSEK 0.0) are included in the operating
profit.
• Profit after financial items amounted to MSEK 36.8
(MSEK 310.9 ), and profit after tax amounted to
MSEK 27.3 (MSEK 239.4 ).
• Cash flow from operating activities amounted to
MSEK 391.1 (MSEK 421.6 ), and cash flow from
investing activities amounted to MSEK -81.2
(MSEK -172.5 ). Cash flow from investing activities
includes a positive effect of MSEK 70.0 (MSEK 0.0)
from sales of short -term investments in bonds .
• By the end of the period cash amounted to MSEK
1,164.2 (MSEK 844.2) .
• Earnings per share before dilution amounted to
SEK 0.26 (SEK 2.27 ) and after dilution SEK 0.26
(SEK 2.24 ).
• Revenues in the quarter are mainly attributable to
Age of Wonders 4, Crusader Kings III, Hearts of Iron
IV, Stellaris and Victoria 3.
IMPORTANT EVENTS IN THE SECOND
QUARTER
• Foundry, developed by Channel 3 Entertainment,
was released to PC in Early Access .
• New downloadable content was released to games
during the period ; The Machine Age to Stellaris,
Eldritch Realms to Age of Wonders 4, Sphere of
Influence to Victoria 3, Winds of Change to Europa
Universalis IV, The Obsidian Uprising and Nenukil,
The Engineer to Across the Obelisk.
• The release of Life by You, developed by Paradox
Tectonic, was cancelled, which led to a write -down
of all capitalised development costs of MSEK 208.0.
FIRST SIX MONTHS
• Revenues amounted to MSEK 1,057.9 (MSEK
1,220.1 ), a de crease by 13 % compared to the same
period last year.
• Operating profit amounted to MSEK 183.3 (MSEK
448.6 ), a de crease by 59 %.
• Profit after financial items amounted to MSEK
201.8 (MSEK 468.0 ), and profit after tax amounted
to MSEK 154.1 (MSEK 363.1 ).
• Earnings per share before dilution amounted to
SEK 1.46 (SEK 3.44 ) and after dilution SEK 1.46
(SEK 3.41).

INTERIM REPORT , JANUARY – JUNE 2024 3
COMMENTS BY THE CEO
We end the second quarter of the year with mixed
feelings. On the one hand, our core business has
performed very well, but on the other hand, we made
the difficult decision to cancel the release of Life by
You, as the game would not be able to meet our
expectations.
Looking at the quarter’s results, we’ve released
several strong expansions with good quality to our
core games, which has a positive impact on the top
line and provides a good cash flow from operating
activities. The bottom line is sadly weighed down by
the write -down of Life by You. It is painful but gives us
a strong motivation to further improve our
operations.
It is clear that we have made the wrong calls in
several projects, especially outside of our core, and
this must change. We have areas here where we need
to improve, for example in production, quality and
risk assessment. In 2021, we made major changes to
how we invest in riskier projects, which means that
we have not started new projects with the same
combination of high risk and high costs as Life by
You. We have taken steps forward in those efforts.
Recently, much of our focus is on achieving the right
quality and taking the right risk in all types of
projects. But more needs to be done. No change for
the better can be too small or too big, even if it is
work that will take time.
And amid the well -deserved self -criticism, it is worth
reminding ourselves that we have solid footing,
because the foundation of our business is doing well.
Our in -house developed core games continue to
deliver good content that players have appreciated.
We will continue to strive to find the balance between
cadence and quality, but it is an effort that never
ceases. We continue to commercially optimize our
ga mes in everything from pricing and packaging to
platforms and business models, all with the aim of
providing players with the best way possible to take
part in our games. We’re also happy that Cities:
Skylines II has picked up momentum, with the latest
updates bringing sweeping changes to systems and
many additions that players have enjoyed. It’s far to o
early to claim victory, but these are several steps in
the right direction.
Despite great annoyance at our own mistakes, we
have faith. Paradox’s future is bright, but we need to
roll up our sleeves and work hard to fully realize the
potential.
Fredrik Wester, CEO

INTERIM REPORT , JANUARY – JUNE 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 five studios in five 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

8
Games in pipeline
16 %
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 -200
0
200
400
600
800
1 000
1 200
Revenues Operating profit

INTERIM REPORT , JANUARY – JUNE 2024 5
RELEASE S IN THE PERIOD

FOUNDRY
Release dat e: 2 May 2024 (Early Access)
Platform s: PC
Price: USD 29.99
Description: Build a factory optimized to perfection or an artistic masterpiece in an
infinite voxel world. Mine and harvest resources, automate your ever -growing
production lines and manage complex systems while researching your way to
mechanical mastery.
Publisher: Paradox Interactive
Developer : Channel 3 Entertainment

STELLARIS: THE MACHINE AGE
Release dat e: 7 May 2024
Platform s: PC
Price: USD 24.99
Description: As cybernetic augmentation transcends the limits of the body,
synthetic ascension beckons with the promise of eternal life It is a period of
technological marvels, rapid change, and unchecked ambition. But from the ashes
of a Fallen Empire, a danger unlike any before encountered is about to emerge, a
looming threat that will throw the very meaning of life into question.
Publisher: Paradox Interactive
Developer : Paradox Development Studio

AGE OF WONDERS 4: ELDRITCH REALMS
Release dat e: 18 June 2024
Platform s: PC, Xbox Series X|S , Playstation 5
Price: USD 19.99
Description: The depths of the Umbral Abyss are yours to conquer. Terrify your foes
as an Eldritch Sovereign, wield mighty new tomes of magic, survive world -altering
global events and lead your people against the darkness before it spreads across the
realms.
Publisher: Paradox Interactive
Developer : Triumph Studios

INTERIM REPORT , JANUARY – JUNE 2024 6

VICTORIA 3: SPHERE OF INFLUENCE
Release dat e: 24 June 2024
Platform s: PC
Price: USD 29.99
Description: Put your diplomatic skill to the ultimate test in Sphere of Influence,
a new expansion to Victoria 3. Pull other nations into your orbit through
diplomatic skill, economic leverage or straightforward bribery. Building a durable
international faction of like -minded governments, pursuing common goals for a
common good and the glory of your power.
Publisher: Paradox Interactive
Developer : Paradox Development Studio

EUROPA UNIVERSALIS IV: WINDS OF CHANGE
Release dat e: 8 May 2024
Platform s: PC
Price: USD 19.99
Description: Winds of Change makes wide -ranging changes to twenty nations
stretching from the Andean highlands to the vast steppes of Mongolia. There are
many new branching missions, government reforms, events, estate privileges and
more .
Publisher: Paradox Interactive
Developer : Paradox Tinto

ACROSS THE OBELISK: THE OBSIDIAN UPRISING
Release dat e: 15 May 2024
Platform s: PC
Price: USD 4.99
Description: In The Obsidian Uprising, you’ll travel 30 years back in time to the
dwarven city of Black Forge and discover a thrilling new Across the Obelisk story.
Disaster looms over Black Forge. Gather your band of heroes, restore peace and
battle your way back to present -day Senenthia.
Publisher: Paradox Interactive
Developer : Dreamsite Games

INTERIM REPORT , JANUARY – JUNE 2024 7

ACROSS THE OBELISK: NENUKIL, THE ENGINEER
Release dat e: 15 May 2024
Platform s: PC
Price: USD 4.99
Description: Nenukil, the Engineer is a Hero Pack that introduces a brand new
Scout class character with a powerful gameplay mechanic and a unique
dynamic skin.
Publisher: Paradox Interactive
Developer : Dreamsite Games

INTERIM REPORT , JANUARY – JUNE 2024 8
FINANCIAL OVERVIEW
REVENUE AND PROFIT SECOND QUARTER
Revenues amounted to MSEK 575.8 (MSEK 737.3 ), a
decrease by 22 % compared to the same period last
year . The new game Foundry, developed by Channel 3
Entertainment, was released to PC. New downloadable
content was released to games during the period; The
Machine Age to Stellaris, Eldritch Realms to Age of
Wonders 4, Sphere of Influence to Victoria 3, Winds of
Change to Eu ropa Universalis IV, The Obsidian Uprising
and Nenukil, The Engineer to Across the Obelisk.
Revenues in the quarter are mainly attributable to Age
of Wonders 4, Crusader Kings III, Hear ts of Iron IV,
Stellaris and Victoria 3.
Cost of goods sold amounted to MSEK 455.8 (MSEK
337.8 ), 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
96.2 (MSEK 154.6 ). Amortisations has decreased as a
result of fewer releases of new games and
downloadable content .
Write -downs for the period within cost of goods sold
amount to MSEK 208.0 (MSEK 0.0 ). The write -downs
relate to Life by You and resulted in the remaining
capitalised development at the end of the quarter
being written down to MSEK 0.0, as the release of the
game has been cancelled.

Amortisations of licenses, brands, and similar rights
amounted to MSEK 13. 8 (MSEK 2 1.0 ).
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 12 9.3 (MSEK
153.1 ) 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 a nd maintenance of games are at level with
the comparison period .
Royalties and revenue based earn -outs have decreased
compared to the comparison period due to lower sales
of royalty and earn -out generating games. Earn -out
relates to 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 66.4
(MSEK 90.2 ). The decrease is related to fewer releases
of new games and downloadable content.
Administrative expenses for the period amounted to
MSEK 26. 5 (MSEK 2 6.3 ). Costs for administration are
generally unchanged over time and are relatively
unaffected by other operations .
0
50
100
150
200
250
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Write-downs 0
100
200
300
400
500
600
700
800
900
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
COGS Selling expenses Administrative expenses

INTERIM REPORT , JANUARY – JUNE 2024 9
Other income amounted to MSEK 2.0 (MSEK 10.0 ), and
other expenses to MSEK -0.1 (MSEK -0.2). 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 28.9 (MSEK 292.9 ).
Financial income amounted to MSEK 11.2 (MSEK 5.5)
and mainly consists of interest income from bank
accounts and interest income from short -term
investments of excess cash. Financial expense
amounted to MSEK 3.3 (MSEK 2.9 ) and consists of
calculated interest on lease liabilities .
Profit after financial items amounted to MSEK 36.8
(MSEK 310.9 ), and profit after tax amounted to MSEK
27.3 (MSEK 239.4 ).
FINANCIAL POSITION
Capitalised development amounted to MSEK 1,368.3
(MSEK 1,767.5 ) 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 attributed to the
write -do wns of Life by You, and the prior write -down of
The Lamplighters League.

Licenses, brands, and similar rights amounted to MSEK
79.9 (MSEK 122.2 ).
Goodwill amounted to MSEK 22.9 (MSEK 23.8 )
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for offices amounted to MSEK 88. 4
(MSEK 122.0 ).
Accounts receivable amounted to MSEK 2 17.5 (MSEK
235.9 ).
Cash and cash equivalents amounted to MSEK 1,1 64.2
(MSEK 8 44.2).
Equity amounts to MSEK 2, 471.4 (MSEK 2, 459 .9).
Long -term lease liabilities amount to MSEK 53.5 (MSEK
89.2 ) consisting of liabilities for office premises.
Deferred tax liabilities amount to MSEK 138.5 (MSEK
126.8 ), mainly relating to untaxed reserves and
intangible assets from acquisitions.
Short -term lease liabilities amount to MSEK 30.4
(MSEK 37.2 ) consisting of short -term liabilities for
office premises.
Accrued expenses and prepaid income amounts to
MSEK 345.3 (MSEK 385.4 ) by the end of the period.
Prepaid income is unchanged compared to the
previous year .
CASH FLOW SECOND QUARTER
Cash flow from operating activities amounted to MSEK
391.1 (MSEK 421.6 ), primarily attributable to the
operating profit, adjusted for depreciation,
amortisation and write -downs. Cash flow from
investing activities amounted to MSEK -81.2 (MSEK
-172.5). Cash flow from investing activities includes a
positive effect of MSEK 70.0 (MSEK 0.0) from sales of
short -term investments in bonds. Cash flow from
financing activities amounted to MSEK -326.4 (MSEK
-220.4 ) relating mainly to dividends, but also
amortisation of lease liabilities for office premises .
THE FIRST SIX MONTHS IN SUMMARY
Revenues amounted to MSEK 1,057.9 (MSEK 1,220.1) a
decrease by 13 % compared to the same period last
year. Cost of goods sold amounted to MSEK 723.9
(MSEK 600.8), 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 9.7). Cost of royalties is lower compared to the
same period last year. Operating profit amounted to
MSEK 183.3 (MS EK 448.6), a de crease by 59 %. Profit
after financial items amounted to MSEK 201.8 (MSEK 0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Thousands
Capitalised development costs

INTERIM REPORT , JANUARY – JUNE 2024 10
468.0), and profit after tax amounted to MSEK 154.1
(MSEK 363.1). Cash flow from operating activities
amounted to MSEK 528.1 (MSEK 666.2). Cash flow from
investing activities amounted to MSEK -129.1 (MSEK
-342.5). Cash flow from financing activities amounted
to MSEK -335.9 (MSEK -229.3).
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 SECOND 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 578.6 (MSEK 737.4 ). Operating profit amounted
to MSEK -137.6 (MSEK 176.9 ). Profit after financial
items amounted to MSEK -127.4 (MSEK 214.6 ). Profit
after tax amounted to MSEK -103.1 (MSEK 166.9 ).
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 impact on
the group’s financial position and results .

INTERIM REPORT , JANUARY – JUNE 2024 11
FIANCIAL CALENDAR
Interim report January -September 202 4
Year -end report 202 4
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 25 July 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
25 July 2024 .

INTERIM REPORT , JANUARY – JUNE 2024 12
KEY FIGURES FOR THE GROUP

For definitions of key figures, see the annual report . 2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
Revenues, KSEK 575,755 737,334 1,057,854 1,220,111 2,642,107
Operating profit, KSEK 28,897 292,899 183,267 448,598 657,868
Profit after financial items, KSEK 36,823 310,883 201,780 468,021 687,759
Profit after tax, KSEK 27,283 239,351 154,146 363,062 530,625
Operating margin 5% 40% 17% 37% 25%
Profit margin 6% 42% 19% 38% 26%
Equity/assets ratio 77% 74% 77% 74% 73%
Equity per share before dilution, SEK 23.40 23.29 23.40 23.29 24.81
Equity per share after dilution, SEK 23.40 23.06 23.40 23.06 24.75
Earnings per share before dilution, SEK 0.26 2.27 1.46 3.44 5.02
Earnings per share after dilution, SEK 0.26 2.24 1.46 3.41 4.99
Number of shares by the end of the period before dilution 105,623,025 105,619,209 105,623,025 105,619,209 105,623,025
Number of shares by the end of the period after dilution 105,623,025 106,690,559 105,623,025 106,690,559 105,885,175
Average number of shares before dilution 105,623,025 105,619,209 105,623,025 105,619,209 105,621,117
Average number of shares after dilution 105,623,025 106,521,942 105,639,517 106,196,422 106,153,901
Average number of employees 594 674 594 670 649

INTERIM REPORT , JANUARY – JUNE 2024 13
GROUP INCOME STATEMENT (KSEK )

OTHER COMPREHENSIVE INCOME (KSEK )

2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
Revenues 575,755 737,334 1,057,854 1,220,111 2,642,107
Cost of goods sold -455,805 -337,759 -723,875 -600,831 -1,567,321
Gross profit 119,950 399,575 333,979 619,280 1,074,786
Selling expenses -66,435 -90,196 -121,107 -138,052 -291,180
Administrative expenses -26,478 -26,347 -52,524 -49,185 -99,225
Other income 1,996 10,038 23,690 16,881 20,916
Other expenses -136 -171 -771 -326 -47,428
Operating profit 28,897 292,899 183,267 448,598 657,868
Profit from shares in associated companies – 15,440 – 15,440 15,440
Financial income 11,201 5,485 23,445 9,951 25,086
Financial expense -3,275 -2,941 -4,933 -5,968 -10,635
Profit after financial items 36,823 310,883 201,780 468,021 687,759
Tax -9,540 -71,532 -47,633 -104,958 -157,134
Profit for the period 27,283 239,351 154,146 363,062 530,625
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 0.26 2.27 1.46 3.44 5.02
Earnings per share after dilution, SEK 0.26 2.24 1.46 3.41 4.99 2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
Profit for the period 27,283 239,351 154,146 363,062 530,625
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences -2,417 7,148 6,505 11,885 2,493
Other comprehensive income -2,417 7,148 6,505 11,885 2,493
Total comprehensive income for the period 24,866 246,499 160,651 374,947 533,118
Profit for the period is attributable to the shareholders of the parent company.

INTERIM REPORT , JANUARY – JUNE 2024 14
GROUP BALANCE SHEET (KSEK )

2024-06-30 2023-06-30 2023-12-31
ASSETS
Non-current assets
Capitalised development 1,368,341 1,767,488 1,463,202
Licenses, brands and similar rights 79,852 122,209 105,532
Goodwill 22,881 23,751 22,350
Property and equipment 9,996 16,896 13,034
Right-of-use assets 88,377 122,025 112,515
Other long term assets 18,722 18,772 18,691
Total non-current assets 1,588,169 2,071,141 1,735,323
Current assets
Accounts receivable 217,541 235,863 358,219
Tax assets 73,288 31,225 63,251
Other receivables 79,750 56,348 70,420
Prepaid expenses and accrued revenue 83,119 88,977 57,837
Bonds – – 197,051
Cash and cash equivalents 1,164,193 844,209 1,098,025
Total current assets 1,617,891 1,256,622 1,844,803
TOTAL ASSETS 3,206,060 3,327,763 3,580,126 EQUITY AND LIABILITIES
Equity
Share capital 528 528 528
Other capital contributed 29,748 29,542 29,748
Reserves 29,188 37,062 22,684
Retained earnings 2,411,935 2,392,733 2,567,495
Total equity 2,471,400 2,459,865 2,620,455
Long-term liabilities
Lease liabilities 53,470 89,244 75,997
Deferred tax liabilities 138,512 126,832 144,044
Total long-term liabilities 191,981 216,075 220,041
Current liabilities
Accounts payable 44,068 67,420 52,481
Current tax liabilities 32,062 102,429 95,427
Lease liabilities 30,448 37,210 32,583
Other liabilities 90,790 59,374 65,275
Accrued expenses and prepaid revenues 345,312 385,390 493,864
Total current liabilities 542,679 651,823 739,630
TOTAL EQUITY AND LIABILITIES 3,206,060 3,327,763 3,580,126

INTERIM REPORT , JANUARY – JUNE 2024 15
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 154,146 154,146
Other comprehensive income
Translation difference 6,505 6,505
Total other comprehensive income – – 6,505 – 6,505
Total comprehensive income – – 6,505 154,146 160,651
Transactions with owners
Share-based payments staff – – – 7,162 7,162
Dividends – – – -316,869 -316,869
Total transactions with owners – – – -309,707 -309,707
AT THE END OF THE PERIOD 2024-06-30 528 29,748 29,188 2,411,935 2,471,400 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 363,062 363,062
Other comprehensive income
Translation difference 11,885 11,885
Total other comprehensive income – – 11,885 – 11,885
Total comprehensive income – – 11,885 363,062 374,948
Transactions with owners
Share-based payments staff – – – 3,778 3,778
Dividends – – – -211,238 -211,238
Total transactions with owners – – – -207,460 -207,460
AT THE END OF THE PERIOD 2023-06-30 528 29,542 37,062 2,392,733 2,459,865

INTERIM REPORT , JANUARY – JUNE 2024 16
GROUP CASH FLOW STATEMENT (KSEK )
2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
Cash flow from operations
Operating profit 28,897 292,899 183,267 448,598 657,868
Adjustment of depreciation, amortisation and write-downs 329,200 187,898 474,008 341,515 990,312
Other adjustments 3,758 1,192 7,246 -1,023 6,079
Interest received 1,073 5,485 1,942 9,951 25,086
Interest paid -3,275 -2,941 -4,933 -5,968 -10,635
Tax paid -60,441 -54,652 -126,917 -111,534 -184,436
Cash flow before changes in working capital 299,212 429,881 534,614 681,540 1,484,275
Changes in working capital
Change in current receivables 150,690 -77,667 124,506 -23,020 -138,630
Change in current liabilities -58,755 69,348 -131,063 7,666 106,196
Cash flow from current operations 391,146 421,562 528,056 666,186 1,451,842
Investing activities
Cash flow from sales of associated companies – 53,174 – 53,174 53,174
Investments in capitalised development -150,988 -224,114 -329,229 -393,249 -676,045
Investments in licenses, brands and similar rights – – – – -27,103
Investments in equipment -221 -1,532 -295 -2,456 -3,050
Investments in bonds – – – – -336,355
Sales of bonds 70,000 – 200,450 – 141,100
Cash flow from investing activities -81,209 -172,472 -129,074 -342,531 -848,278
Financing activities
Amortisation of lease liability -9,556 -9,139 -19,048 -18,057 -37,722
Paid dividend -316,869 -211,238 -316,869 -211,238 -211,238
Cash flow from financing activities -326,425 -220,378 -335,917 -229,295 -248,960
Cash flow for the period -16,488 28,712 63,065 94,360 354,603
Cash and cash equivalents at the beginning of the period 1,181,826 812,708 1,098,025 767,561 767,561
Exchange rate effect -1,146 2,788 3,103 2,343 -4,084
Cash and cash equivalents at the end of the period 1,164,193 844,209 1,164,193 844,209 1,098,025

INTERIM REPORT , JANUARY – JUNE 2024 17
PARENT COMPANY INCOME STATEMENT (KSEK )

2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
Revenues 578,588 737,434 1,064,276 1,220,089 2,647,805
Cost of goods sold -629,875 -459,474 -987,084 -818,466 -1,962,066
Gross profit -51,287 277,960 77,192 401,623 685,739
Selling expenses -62,302 -84,805 -113,588 -129,072 -272,670
Administrative expenses -25,632 -26,166 -51,349 -48,482 -99,437
Other income 1,573 9,907 23,004 12,428 15,260
Other expenses – – -277 – -46,926
Operating profit -137,648 176,895 -65,018 236,498 281,967
Profit from shares in associated companies – 35,381 – 35,381 35,381
Financial income 10,291 4,351 21,355 8,018 20,769
Financial expense -1 -2,000 -702 -4,001 -7,003
Profit after financial items -127,358 214,627 -44,366 275,896 331,113
Year-end appropriations – – – – 100,000
Tax 24,278 -47,708 2,909 -60,329 -97,573
Profit for the year and total income for the year -103,080 166,920 -41,456 215,567 333,541

INTERIM REPORT , JANUARY – JUNE 2024 18
PARENT COMPANY BALANCE SHEET (KSEK )

2024-06-30 2023-06-30 2023-12-31
ASSETS
Non-current assets
Capitalised development 946,487 1,448,026 1,098,525
Licenses, brands and similar rights 29,097 24,430 34,855
Property and equipment 3,395 8,871 6,143
Shares in subsidiaries 279,742 305,812 305,812
Investments in associates – – –
Other long term assets 17,393 17,393 17,393
Total non-current assets 1,276,115 1,804,532 1,462,726
Current assets
Accounts receivable 210,814 228,243 350,400
Receivables from group companies 1,937 1,700 19,144
Tax assets 70,471 31,225 58,560
Other receivables 62,477 50,897 65,968
Prepaid expenses and accrued revenues 88,149 85,669 64,945
Bonds – – 197,051
Cash and cash equivalents 1,014,623 660,298 780,059
Total current assets 1,448,472 1,058,032 1,536,126
TOTAL ASSETS 2,724,586 2,862,564 2,998,853 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528 528
Capitalised development reserve 946,487 1,448,026 1,098,525
Non-restricted equity
Share premium reserve 29,748 29,542 29,748
Retained earnings 599,438 66,865 423,566
Profit for the period -41,456 215,568 333,541
Total equity 1,534,745 1,760,529 1,885,908
Untaxed reserves 605,000 485,000 605,000
Current liabilities
Accounts payable 37,317 60,481 43,965
Liabilities to group companies 251,505 239,440 25,393
Other liabilities 10,236 11,430 4,122
Accrued expenses and prepaid revenues 285,783 305,684 434,465
Total current liabilities 584,841 617,035 507,944
TOTAL EQUITY AND LIABILITIES 2,724,586 2,862,564 2,998,853

INTERIM REPORT , JANUARY – JUNE 2024 19
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 6 -month period respectively MSEK 489.2 (MSEK 559.2 ) and MSEK 869.8 (MSEK 873.1 ) of the group’s revenue came
from one and the same platform .
Group revenue divided into major product categories ;

Prepaid revenue amounted to MSEK 209 .9 (MSEK 204.0 ) at the end of the period. Of these, MSEK 209.9 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 6 -month period respectively include MSEK 67.7 (MSEK 76.2) and MSEK 123.5 (MSEK 163.6) which were
included in prepaid revenue at the beginning of the period .

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

2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
USA 503,440 635,368 909,202 1,059,824 2,285,109
Sweden 15,440 16,884 33,956 18,953 49,873
Rest of Europe 46,593 74,347 96,279 119,224 258,575
Rest of the World 10,282 10,734 18,417 22,110 48,550
Total 575,755 737,334 1,057,854 1,220,111 2,642,107 2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
PC 501,078 589,627 905,426 979,581 2,202,494
Console 55,892 109,538 113,622 166,491 310,562
Mobile 13,344 16,656 26,517 34,831 65,756
Other 5,441 21,513 12,290 39,208 63,295
Total 575,755 737,334 1,057,854 1,220,111 2,642,107 2024-04-01 2023-04-01 2024-01-01 2023-01-01 2023-01-01
2024-06-30 2023-06-30 2024-06-30 2023-06-30 2023-12-31
Cost of goods sold 326,578 184,648 468,773 335,205 980,561
Selling expenses 919 1,388 1,808 2,462 3,119
Administrative expenses 1,703 1,862 3,426 3,848 6,633
Total 329,200 187,898 474,008 341,515 990,312

INTERIM REPORT , JANUARY – JUNE 2024 20