Paradox Interactive FY2024 Q3 Earnings Release

Oct, 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 – SEPTEMBER 2024

INTERIM REPORT , JANUARY – SEPTEMBER 2024 2
INTERIM REPORT
JANUARY – SEPTEMBER 2024
THIRD QUARTER
• Revenues amounted to MSEK 434.0 (MSEK 426.4 ),
an increase by 2 % compared to the same period
last year.
• Operating profit amounted to MSEK 142.8 (MSEK
85.4 ), a n increase by 67 %.
• Profit after financial items amounted to MSEK
151.2 (MSEK 88.5 ), and profit after tax amounted
to MSEK 119.7 (MSEK 69.3 ).
• Cash flow from operating activities amounted to
MSEK 153.7 (MSEK 260.1 ), and cash flow from
investing activities amounted to MSEK -115.3
(MSEK -359.1 ). Cash flow from investing activities
includes MSEK 0.0 (MSEK -198.1 ) from short -term
investments in bonds .
• By the end of the period cash amounted to MSEK
1,190.4 (MSEK 734.9) .
• Earnings per share before dilution amounted to
SEK 1.13 (SEK 0.66 ) and after dilution SEK 1.13
(SEK 0.65 ).
• Revenues in the quarter are mainly attributable to
Cities: Skylines, Cities: Skylines II, Crusader Kings
III, Hearts of Iron IV and Stellaris.
IMPORTANT EVENTS THIRD QUARTER
• New downloadable content was released to games
during the period ; Roads to Power to Crusader
Kings III, Cosmic Storms to Stellaris and Ancient
Worlds to Millennia.
• New ports to downloadable content was released
during the period; Friends & Foes to Crusader
Kings III.
• Mechabellum, developed by Game River and
published by Paradox Arc, left early access and was
released in version 1.0 on PC.
FIRST NINE MONTHS
• Revenues amounted to MSEK 1,491.8 (MSEK
1,646.6 ), a de crease by 9 % compared to the same
period last year.
• Operating profit amounted to MSEK 326.1 (MSEK
534.0 ), a de crease by 39 %. Operating profit
includes write -downs of MSEK 208.0 (MSEK 9.6).
• Profit after financial items amounted to MSEK
353.0 (MSEK 556.5 ), and profit after tax amounted
to MSEK 273.8 (MSEK 432.4 ).
• Earnings per share before dilution amounted to
SEK 2.59 (SEK 4.09 ) and after dilution SEK 2.59
(SEK 4.06 ).

INTERIM REPORT , JANUARY – SEPTEMBER 2024 3
COMMENTS BY THE CEO
As is often the case, the third quarter is calmer in
terms of releases and thus revenue, although we had
fantastic content such as Roads to Power to Crusader
Kings III in the period. However, this does not mean
that we have taken it easy in any way . Behind the
scenes we’ve been going at full speed developing
content for our core games, progressing our projects
and continuing to refine our operations in
accordance with our established strategy.
Recently, we’ve put a lot of energy into strengthening
the publishing arm, defining our process for working
with third -party game development, and continuing
to focus our internal studios. The aim has been to
create clear mandates, more explicit responsibility
and to ensure the quality of the games. Among other
things, this led us to delay the release of Prison
Architect 2 until we feel the game is ready.
These efforts are in line with our strategic direction,
where for some time now we have a stronger focus
on, and make bigger investments in, our core
business: Grand Strategy and Management Games.
Meanwhile, we are exploring and experimenting with
less ris k within the framework of Paradox Arc.
Changes like these take time, given that our
development cycles are long, but we are moving in
the right direction step by step and the future for
Paradox looks bright. We have many expansions
coming out and have a strong drive and focus in our
teams . Moreover, we have an exciting pipeline, and I
really look forward to presenting more later.
Fredrik Wester, CEO

INTERIM REPORT , JANUARY – SEPTEMBER 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 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
1 9 %
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

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

CRUSADER KINGS III: ROADS TO POWER
Release date : 24 September 2024
Pla tform : PC
Pri ce: 29.99 USD
Description : The glory and might of the Byzantine Empire are yours to command in
this Major Expansion to Crusader Kings III. The unique politics and cultures of the
heir to the Roman Empire are on display through a new governing system, new ways
for characters to progress up the societal ladder, and new activities for them to
engage in . You can also explore a new exciting lifestyle as a landless Adventurer,
seeking fame and glory across a living map of the medieval world.
Publisher : Paradox Interactive
Developer : Paradox Development Studio

CRUSADER KINGS III CONSOLE EDITION: FRIENDS & FOES
Release date: 26 August 2024
Plat forms : Xbox Series X|S, PlayStation 5
Price: 4.99 USD
Description : Over one hundred unique new experiences of medieval drama wait to
be discovered. From rival noble houses holding lifelong grudges to childhood
bullies, summer crushes, and spoiling spouses with lavish gifts. Your ruler’s everyday
existence has never been more fraught – or more exciting .
Publisher: Paradox Interactive
Developer : Paradox Development Studio and Dragons Lake (port)

MILLENNIA: ANCIENT WORLDS
Release date : 12 August 202 4
Pla tform : PC
Price: 9.99 USD
Description : Travel back to the moments before civilization and set your small band
of humans on the path to greater glory as your society evolves and adapts. The
Ancient Worlds expansion for Millennia has new options and gameplay choices for
the early parts of the game, with new abilities and experiences, a new National Spirit
and a new government type.
Publisher: Paradox Interactive
Developer : C Prompt Games

INTERIM REPORT , JANUARY – SEPTEMBER 2024 6

STELLARIS: COSMIC STORMS
Release date: 10 September 202 4
Pla tform : PC
Price: 12.99 USD
Description : Cosmic Storms is a Mechanical Expansion for Stellaris where the
skies teem with eight new storm types filled with peril and promise. From Electric
Storms harnessing the power of lightning to the formidable Nexus Storm, a
galactic tempest of unparalleled ma gnitude, these natural phenomena challenge
you to make skillful choices to steer your empire safely and profitably through the
chaos. Embark on your journey with the Storm Chasers Origin, uncover the
secrets of two new Precursors, or engage with the storms themselves through the
Astrometeorology and Storm Devotion Civics.
Publisher: Paradox Interactive
Developer : Paradox Development Studio and Behaviour Rotterdam

MECHABELLUM 1.0
Release date: 26 September 2024
Pla tform : PC
Price: 14.99 USD
Description : Mechabellum is a rewarding tactical wargame where you gain
victory by adapting your strategy and outthinking your opponents. Command
mechanized army in a battle against humans or AI, customize your units and
strategically place them on the battlefield to w atch them destroy your enemies.
Publisher: Paradox Arc
Developer : Game River

INTERIM REPORT , JANUARY – SEPTEMBER 2024 7
FINANCIAL OVERVIEW
REVENUE AND PROFIT THIRD QUARTER
Revenues amounted to MSEK 434.0 (MSEK 426.4), an
increase by 2 % compared to the same period last
year. New downloadable content was released to
games during the period; Roads to Power to Crusader
Kings III, Cosmic Storms to Stellaris and Ancient
Worlds to Millennia. New ports to downloadable
content was released during the period; Friends & Foes
to Crusader Kings III. Mechabellum, developed by
Game River and published by Paradox Arc, left early
access and was released in version 1.0 on PC.
Revenues in the quarter are mainly attributable to
Cities: Skylines, Cities: Skylines II, Crusader Kings III,
Hearts of Iron IV and Stellaris.
Cost of goods sold amounted to MSEK 217.1 (MSEK
254.5 ), 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
96.0 (MSEK 113.6 ). Amortisation 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 0.0 (MSEK 0.0).

Amortisations of licenses, brands, and similar rights
amounted to MSEK 13. 8 (MSEK 2 0.2 ).
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 100.0 (MSEK
109.8 ) 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 decreased 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 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 202 3,
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 44.2
(MSEK 65.5 ). The decrease is related to the comparison
period including costs ahead of the releases of Cities:
Skylines II and The Lamplighters League.
Administrative expenses for the period amounted to
MSEK 2 2.1 (MSEK 2 2.8 ). Costs for administration are
generally unchanged over time and are relatively
unaffected by other operations .

Other income amounted to MSEK 1.7 (MSEK 1.9 ), and
other expenses to MSEK -9.4 (MSEK -0.2). Other income
and other expenses consist primarily of exchange rate
effects on the group’s cash and cash equivalents, 0
50
100
150
200
250
Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Write-downs 0
100
200
300
400
500
600
700
800
900
Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
COGS Selling expenses Administrative expenses

INTERIM REPORT , JANUARY – SEPTEMBER 2024 8
operating receivables, and operating liabilities during
the quarter.
Operating profit amounted to MSEK 142.8 (MSEK 85.4 ).
Financial income amounted to MSEK 9.2 (MSEK 5.8)
and mainly consists of interest income from bank
accounts and interest income from short -term
investments of excess cash. Financial expense
amounted to MSEK 0.8 (MSEK 2.7 ) and consists of
calculated interest on lease liabilities.
Profit after financial items amounted to MSEK 151.2
(MSEK 88.5 ), and profit after tax amounted to MSEK
119.7 (MSEK 69.3 ).
FINANCIAL POSITION
Capitalised development amounted to MSEK 1,387.3
(MSEK 1,785.7 ) 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 amortisation and
write -down of The Lamplighters League.

Licenses, brands, and similar rights amounted to MSEK
65.8 (MSEK 127.0 ).
Goodwill amounted to MSEK 22.8 (MSEK 23.1 )
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for offices amounted to MSEK 78.9
(MSEK 123.5 ).
Accounts receivable amounted to MSEK 2 02.7 (MSEK
219.3 ).
Cash and cash equivalents amounted to MSEK 1,1 90.4
(MSEK 734.9 ).
Equity amounts to MSEK 2, 590.0 (MSEK 2, 528.5 ).
Long -term lease liabilities amount to MSEK 43.6 (MSEK
87.0 ) consisting of liabilities for office premises.
Deferred tax liabilities amount to MSEK 135.4 (MSEK
123.1 ), mainly relating to untaxed reserves and
intangible assets from acquisitions.
Short -term lease liabilities amount to MSEK 30.6
(MSEK 32.7 ) consisting of short -term liabilities for
office premises.
Accrued expenses and prepaid income amount to
MSEK 290.7 (MSEK 417.0 ) by the end of the period.
Prepaid income has decreased compared to the
previous year following the releases of Cities: Skylines
II and The Lamplighters League.
CASH FLOW THIRD QUARTER
Cash flow from operating activities amounted to MSEK
153.7 (MSEK 260.1), primarily attributable to the
operating profit, adjusted for depreciation,
amortisation and write -downs. Cash flow from
investing activities amounted to MSEK -115.3 (MSEK
-359.1 ). Cash flow from investing activities includes
MSEK 0.0 (MSEK -198.1 ) from short -term investments
in bonds. Cash flow from financing activities amounted
to MSEK -9.6 (MSEK -9.5 ) relating mainly to
amortisation of lease liabilities for office premises.
THE FIRST NINE MONTHS IN SUMMARY
Revenues amounted to MSEK 1,491.8 (MSEK 1, 646.5 ) a
decrease by 9 % compared to the same period last
year. Cost of goods sold amounted to MSEK 941.0
(MSEK 855.3 ), 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 9. 6). Operating profit amounted to MSEK 326.1
(MSEK 534.0 ), a de crease by 39 %. Profit after financial
items amounted to MSEK 353.0 (MSEK 556.5 ), and
profit after tax amounted to M SEK 273.8 (MSEK 432.4 ).
Cash flow from operating activities amounted to MSEK
681.7 (MSEK 926.3 ). Cash flow from investing activities
amounted to MSEK -244.4 (MSEK -701.7 ). Cash flow
from financing activities amounted to MSEK -345.5
(MSEK -238.8 ). 0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Thousands
Capitalised development costs

INTERIM REPORT , JANUARY – SEPTEMBER 2024 9
RELATED PARTY TRANSACTIONS
No transactions have taken place between the group
and related parties that have affected the group’s
position and results.
PARENT COMPANY THIRD QUARTER
The parent company houses the publishing business.
Within the publishing business, the parent company
buys development services from both external and
wholly owned development studios and pays royalties
to these where applicable. The parent company also
provides administrative services to the subsidiaries. All
in all, this leads to the parent company’s turnover to a
large extent making up the group’s total turnover.
Parent company revenues for the quarter amounted to
MSEK 437.6 (MSEK 425.4 ). Operating profit amounted
to MSEK 35.2 (MSEK 32.7 ). Profit after financial items
amounted to MSEK -32.7 (MSEK 35.4 ). Profit after
financial items includes a write -down of shares in
subsidiaries within profit from shares in subsidiaries
amounting to MSEK -75.7 (MSEK 0.0). Profit after tax
amounted to MSEK -42.6 (MSEK 28.1 ).
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 – SEPTEMBER 2024 10
FINANCIAL CALENDAR
Year -end report 202 4 202 5-02-06
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 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 31 October 202 4

The Board of Directors
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 31 October
2024.

INTERIM REPORT , JANUARY – SEPTEMBER 2024 11
THE AUDITOR’S REVIEW OF
INTERIM FINANCIAL
INFORMATION
Introduction
We have reviewed the condensed interim financial
information (interim report) of Paradox Interactive AB
(publ.) as of 30 September 2023 and the nine -month
period then ended. The board of directors and the CEO
are responsible for the preparation and present ation
of the interim financial information in accordance with
IAS 34 and the Swedish Annual Accounts Act. Our
responsibility is to express a conclusion on this interim
report based on our review.
Scope of Review
We conducted our review in accordance with the
International Standard on Review Engagements ISRE
2410, Review of Interim Report Performed by the
Independent Auditor of the Entity. A review consists of
making inquiries, primarily of persons responsible for
financial and accounting matters, and applying
analytical and other review procedures. A review is
substantially less in scope than an audit conducted in
accordance with International Standards on Auditing,
ISA, and other generally accepted auditing stand ards
in Sweden. The procedures performed in a review do
not enable us to obtain assurance that we would
become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express
an audit opinion.
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
report is not prepared, in all material respects, in
accordance with IAS 34 and the Swedish Annual
Accounts Act, regarding the Group, and with the
Swedish Ann ual Accounts Act, regarding the Parent
Company .
Stockholm October 31, 202 4
Öhrlings PricewaterhouseCoopers AB

Aleksander Lyckow
Authorized Public Accountant

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

For definitions of key figures, see the annual report. 2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
Revenues, KSEK 433,994 426,442 1,491,848 1,646,553 2,642,107
Operating profit, KSEK 142,838 85,363 326,105 533,961 657,868
Profit after financial items, KSEK 151,228 88,465 353,007 556,486 687,759
Profit after tax, KSEK 119,661 69,294 273,808 432,356 530,625
Operating margin 33% 20% 22% 32% 25%
Profit margin 35% 21% 24% 34% 26%
Equity/assets ratio 80% 74% 80% 74% 73%
Equity per share before dilution, SEK 24.52 23.94 24.52 23.94 24.81
Equity per share after dilution, SEK 24.52 23.87 24.52 23.87 24.75
Earnings per share before dilution, SEK 1.13 0.66 2.59 4.09 5.02
Earnings per share after dilution, SEK 1.13 0.65 2.59 4.06 4.99
Number of shares by the end of the period before dilution 105,623,025 105,623,025 105,623,025 105,623,025 105,623,025
Number of shares by the end of the period after dilution 105,623,025 105,910,175 105,623,025 105,910,175 105,885,175
Average number of shares before dilution 105,623,025 105,623,025 105,623,025 105,620,481 105,621,117
Average number of shares after dilution 105,623,025 106,423,406 105,634,020 106,272,083 106,153,901
Average number of employees 584 634 591 658 649

INTERIM REPORT , JANUARY – SEPTEMBER 2024 13
GROUP INCOME STATEMENT (K SEK)

OTHER COMPREHENSIVE INCOME (K SEK)

2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
Revenues 433,994 426,442 1,491,848 1,646,553 2,642,107
Cost of goods sold -217,092 -254,508 -940,967 -855,340 -1,567,321
Gross profit 216,902 171,934 550,881 791,214 1,074,786
Selling expenses -44,239 -65,544 -165,347 -203,595 -291,180
Administrative expenses -22,121 -22,750 -74,645 -71,935 -99,225
Other income 1,721 1,899 25,412 18,780 20,916
Other expenses -9,425 -176 -10,196 -503 -47,428
Operating profit 142,838 85,363 326,105 533,961 657,868
Profit from shares in associated companies – – – 15,440 15,440
Financial income 9,188 5,847 32,633 15,798 25,086
Financial expense -798 -2,745 -5,730 -8,713 -10,635
Profit after financial items 151,228 88,465 353,007 556,486 687,759
Tax -31,566 -19,171 -79,199 -124,129 -157,134
Profit for the period 119,661 69,294 273,808 432,356 530,625
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 1.13 0.66 2.59 4.09 5.02
Earnings per share after dilution, SEK 1.13 0.65 2.59 4.06 4.99 2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
Profit for the period 119,661 69,294 273,808 432,356 530,625
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences -2,996 -4,201 3,509 7,684 2,493
Other comprehensive income -2,996 -4,201 3,509 7,684 2,493
Total comprehensive income for the period 116,665 65,093 277,317 440,041 533,118
Profit for the period is attributable to the shareholders of the parent company.

INTERIM REPORT , JANUARY – SEPTEMBER 2024 14
GROUP BALANCE SHEET (K SEK)

2024-09-30 2023-09-30 2023-12-31
ASSETS
Non-current assets
Capitalised development 1,387,301 1,785,667 1,463,202
Licenses, brands and similar rights 65,835 126,991 105,532
Goodwill 22,761 23,148 22,350
Property and equipment 8,486 14,966 13,034
Right-of-use assets 78,923 123,494 112,515
Other long term assets 18,715 18,737 18,691
Total non-current assets 1,582,020 2,093,003 1,735,323
Current assets
Accounts receivable 202,667 219,261 358,219
Tax assets 104,891 66,277 63,251
Other receivables 56,729 44,989 70,420
Prepaid expenses and accrued revenue 102,422 77,186 57,837
Bonds – 198,068 197,051
Cash and cash equivalents 1,190,355 734,902 1,098,025
Total current assets 1,657,064 1,340,682 1,844,803
TOTAL ASSETS 3,239,084 3,433,686 3,580,126 EQUITY AND LIABILITIES
Equity
Share capital 528 528 528
Other capital contributed 29,748 29,748 29,748
Reserves 26,192 32,861 22,684
Retained earnings 2,533,513 2,465,390 2,567,495
Total equity 2,589,982 2,528,527 2,620,455
Long-term liabilities
Lease liabilities 43,636 86,965 75,997
Deferred tax liabilities 135,422 123,083 144,044
Total long-term liabilities 179,058 210,048 220,041
Current liabilities
Accounts payable 43,804 73,811 52,481
Current tax liabilities 40,112 117,466 95,427
Lease liabilities 30,625 32,697 32,583
Other liabilities 64,819 54,105 65,275
Accrued expenses and prepaid revenues 290,684 417,031 493,864
Total current liabilities 470,045 695,111 739,630
TOTAL EQUITY AND LIABILITIES 3,239,084 3,433,686 3,580,126

INTERIM REPORT , JANUARY – SEPTEMBER 2024 15
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 273,808 273,808
Other comprehensive income
Translation difference 3,509 3,509
Total other comprehensive income – – 3,509 – 3,509
Total comprehensive income – – 3,509 273,808 277,316
Transactions with owners
Share-based payments staff – – – 9,080 9,080
Dividends – – – -316,869 -316,869
Total transactions with owners – – – -307,790 -307,790
AT THE END OF THE PERIOD 2024-09-30 528 29,748 26,192 2,533,513 2,589,982 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 432,356 432,356
Other comprehensive income
Translation difference 7,684 7,684
Total other comprehensive income – – 7,684 – 7,684
Total comprehensive income – – 7,684 432,356 440,041
Transactions with owners
Premiums when redeeming warrants – 1,008 – – 1,008
Re-purchase warrants – -802 – – -802
Share-based payments staff – – – 7,141 7,141
Dividends – – – -211,238 -211,238
Total transactions with owners – 206 – -204,097 -203,891
AT THE END OF THE PERIOD 2023-09-30 528 29,748 32,861 2,465,390 2,528,527

INTERIM REPORT , JANUARY – SEPTEMBER 2024 16
GROUP CASH FLOW STATEMENT (K SEK)

2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
Cash flow from operations
Operating profit 142,838 85,363 326,105 533,961 657,868
Adjustment of depreciation, amortisation and write-downs 121,031 146,798 595,039 488,313 990,312
Other adjustments 1,919 2,678 9,165 1,655 6,079
Interest received 9,188 5,847 11,130 15,798 25,086
Interest paid -798 -2,745 -5,730 -8,713 -10,635
Tax paid -58,242 -42,375 -185,159 -153,909 -184,436
Cash flow before changes in working capital 215,936 195,566 750,550 877,105 1,484,275
Changes in working capital
Change in current receivables 18,592 32,079 143,098 9,060 -138,630
Change in current liabilities -80,862 32,495 -211,925 40,161 106,196
Cash flow from current operations 153,666 260,140 681,722 926,326 1,451,842
Investing activities
Cash flow from sales of associated companies – – – 53,174 53,174
Investments in capitalised development -114,982 -160,696 -444,211 -553,945 -676,045
Investments in licenses, brands and similar rights – – – – -27,103
Investments in equipment -311 -365 -606 -2,821 -3,050
Investments in bonds – -198,068 – -198,068 -336,355
Sales of bonds – – 200,450 – 141,100
Cash flow from investing activities -115,293 -359,129 -244,367 -701,660 -848,278
Financing activities
Amortisation of lease liability -9,600 -9,525 -28,649 -27,581 -37,722
Paid dividend – – -316,869 -211,238 -211,238
Cash flow from financing activities -9,600 -9,525 -345,518 -238,820 -248,960
Cash flow for the period 28,773 -108,513 91,838 -14,153 354,603
Cash and cash equivalents at the beginning of the period 1,164,193 844,209 1,098,025 747,506 747,506
Exchange rate effect -2,611 -793 492 1,550 -4,084
Cash and cash equivalents at the end of the period 1,190,355 734,902 1,190,355 734,902 1,098,025

INTERIM REPORT , JANUARY – SEPTEMBER 2024 17
PARENT COMPANY INCOME STATEMENT (K SEK)

2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
Revenues 437,558 425,416 1,501,834 1,645,505 2,647,805
Cost of goods sold -333,686 -311,026 -1,320,770 -1,129,492 -1,962,066
Gross profit 103,872 114,390 181,064 516,013 685,739
Selling expenses -38,779 -61,025 -152,368 -190,096 -272,670
Administrative expenses -21,750 -22,251 -73,099 -70,733 -99,437
Other income 1,297 1,632 24,301 14,061 15,260
Other expenses -9,441 – -9,718 – -46,926
Operating profit 35,199 32,746 -29,819 269,244 281,967
Profit from shares in subsidiaries -75,731 – -75,731 – –
Profit from shares in associated companies – – – 35,381 35,381
Financial income 7,829 4,680 29,184 12,698 20,769
Financial expense -0 -2,000 -702 -6,002 -7,003
Profit after financial items -32,702 35,425 -77,068 311,321 331,113
Year-end appropriations – – – – 100,000
Tax -9,885 -7,298 -6,975 -67,626 -97,573
Profit for the year and total income for the year -42,587 28,128 -84,044 243,695 333,541

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

2024-09-30 2023-09-30 2023-12-31
ASSETS
Non-current assets
Capitalised development 944,286 1,445,530 1,098,525
Licenses, brands and similar rights 26,219 42,742 34,855
Property and equipment 2,021 7,516 6,143
Shares in subsidiaries 204,011 305,812 305,812
Other long term assets 17,393 17,393 17,393
Total non-current assets 1,193,930 1,818,993 1,462,726
Current assets
Accounts receivable 196,517 211,318 350,400
Receivables from group companies 30,748 4,753 19,144
Tax assets 101,158 64,573 58,560
Other receivables 51,369 38,986 65,968
Prepaid expenses and accrued revenues 106,236 82,002 64,945
Bonds – 198,068 197,051
Cash and cash equivalents 950,076 469,550 780,059
Total current assets 1,436,103 1,069,249 1,536,126
TOTAL ASSETS 2,630,033 2,888,242 2,998,853 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528 528
Capitalised development reserve 944,286 1,445,530 1,098,525
Non-restricted equity
Share premium reserve 29,748 29,748 29,748
Retained earnings 603,557 72,724 423,566
Profit for the period -84,044 243,695 333,541
Total equity 1,494,077 1,792,226 1,885,908
Untaxed reserves 605,000 485,000 605,000
Current liabilities
Accounts payable 31,722 65,069 43,965
Liabilities to group companies 256,841 177,228 25,393
Other liabilities 4,160 3,926 4,122
Accrued expenses and prepaid revenues 238,233 364,793 434,465
Total current liabilities 530,956 611,016 507,944
TOTAL EQUITY AND LIABILITIES 2,630,033 2,888,242 2,998,853

INTERIM REPORT , JANUARY – SEPTEMBER 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 9-month period respectively MSEK 370.4 (MSEK 323.2 ) and MSEK 1,240.1 (MSEK 1,1 43.3) 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

NOTE 3. EMPLOYEE STOCK OPTION PROGRAM 2024/2028
The annual general meeting on May 15, 202 4, decided to introduce an employee stock option program aimed at employees in the group. A total
of 52 7,500 options were subscribed with the right to subscribe for an equal number of shares in Paradox Interactive AB (publ). At the end of the
period, the number of outstanding employee options amounted to 5 17,500.
Allotted employee options were issued free of charge at a market value of SEK 9.76 according to a valuation based on the Black & Scholes model.
The exercise price for the options was set at SEK 200.61 , and subscription of shares is expected to take place 30 days after the publication of the
company’s Interim Report for the second quarter of 2027, the third quarter of 2027, and the first quarter of 2028 respectivel y. The exercise price
corresponded to 120% of the average share price during the period April 2 5 to May 2, 202 4. Vesting of options is conditional on continued
employment in the company. Personnel -related costs excluding social security contributions for the program amount to MSEK 0.4 (MSEK 0.0)
during the year. If these options are fully subscribed, the parent company’s equity will be increased by MSEK 103.8 . 2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
USA 377,281 366,268 1,286,482 1,426,093 2,285,109
Sweden 14,291 8,466 48,247 27,419 49,873
Rest of Europe 34,593 43,139 130,873 162,363 258,575
Rest of the World 7,829 8,569 26,246 30,679 48,550
Total 433,994 426,442 1,491,848 1,646,553 2,642,107 2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
PC 380,180 330,970 1,285,606 1,310,551 2,202,494
Console 38,111 65,066 151,732 231,557 310,562
Mobile 12,143 16,704 38,660 51,534 65,756
Other 3,560 13,702 15,849 52,910 63,295
Total 433,994 426,442 1,491,848 1,646,553 2,642,107 2024-07-01 2023-07-01 2024-01-01 2023-01-01 2023-01-01
2024-09-30 2023-09-30 2024-09-30 2023-09-30 2023-12-31
Cost of goods sold 117,081 144,677 585,855 479,882 980,561
Selling expenses 1,031 497 2,839 2,959 3,119
Administrative expenses 2,919 1,624 6,346 5,472 6,633
Total 121,031 146,798 595,039 488,313 990,312

INTERIM REPORT , JANUARY – SEPTEMBER 2024 20