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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 seven studios in six countries that develop gaming experiences
for the company’s over five million monthly active players. Amongst its most important active games are Cities:
Skylines, 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.
5+ 10
Million MAU Active games
40 % 12
R12 profit margin Games in pipeline
Rolling 12 month revenues and operating profit Quarterly revenues and operating profit
800
2 500
700
2 000 600
500
1 500
400
300
1 000
200
100
500
0
0 -100
Rolling 12 months revenue Rolling 12 months operating profit Revenues Operating profit
AGE OF WONDERS 4
Release date: 2 May 2023
Platforms: PC, PLAYSTATION 5, XBOX SERIES X|S
Description: Rule a fantasy realm of your own design! Explore new magical realms
in Age of Wonders’ signature blend of 4X strategy and turn-based tactical combat.
Control a faction that grows and changes as you expand your empire with each turn!
Publisher: Paradox Interactive
Developer: Triumph Studios
MECHABELLUM
Release date: 11 May 2023
Platforms: PC
Description: Mechabellum is an epic auto-battler taking place on the newly
colonized planet of Far-Away. You’re the Commander of an army of mechs fighting it
out in massive PvP battles. Customize and level up your units, strategically place
them on the battlefield and watch them destroy your enemies.
Publisher: Paradox Arc
Developer: Game River
Write-downs
160 COGS Selling expenses Administrative expenses
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ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance
with IAS 34, Interim Financial Reporting as well as RFR
1 and the annual accounts act. The parent company
applies the Swedish Financial Reporting Board's
recommendation RFR 2, accounting for legal entities.
Accounting principles and calculation bases are in
accordance with the principles applied in the
company's most recent annual report. The carrying
Equity per share before dilution, SEK 23.29 18.09 23.29 18.09 21.70
Equity per share after dilution, SEK 23.06 18.05 23.06 18.05 21.70
Earnings per share before dilution, SEK 2.27 1.61 3.44 3.21 6.71
Earnings per share after dilution, SEK 2.24 1.61 3.41 3.20 6.70
Number of shares by the end of the period before dilution 105,619,209 105,600,000 105,619,209 105,600,000 105,619,209
Number of shares by the end of the period after dilution 106,690,559 105,853,350 106,690,559 105,853,350 105,619,209
Average number of shares before dilution 105,619,209 105,600,000 105,619,209 105,600,000 105,609,605
Average number of shares after dilution 106,521,942 105,815,348 106,196,422 105,828,411 105,723,810
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 2.27 1.61 3.44 3.21 6.71
Earnings per share after dilution, SEK 2.24 1.61 3.41 3.20 6.70
Total comprehensive income for the period 246,499 180,948 374,947 352,783 729,489
Profit for the period is attributable to the shareholders of the parent company.
Non-current assets
Capitalised development 1,767,488 1,407,103 1,650,275
Licenses, brands and similar rights 122,209 198,712 159,501
Goodwill 23,751 21,512 22,415
Property and equipment 16,896 19,441 17,561
Right-of-use assets 122,025 149,131 136,118
Investments in associates - 31,703 32,555
Other long term assets 18,772 18,642 18,695
Total non-current assets 2,071,141 1,846,246 2,037,120
Current assets
Accounts receivable 235,863 137,361 259,948
Tax assets 31,225 7,307 709
Other receivables 56,348 59,191 34,769
Prepaid expenses and accrued revenue 88,977 52,208 61,376
Cash and cash equivalents 844,209 594,867 747,506
Total current assets 1,256,622 850,933 1,104,307
Equity
Share capital 528 528 528
Other capital contributed 29,542 27,994 29,542
Reserves 37,062 18,508 25,176
Retained earnings 2,029,671 1,524,634 1,528,422
Profit for the period 363,062 338,671 708,709
Total equity 2,459,865 1,910,336 2,292,377
Current liabilities
Accounts payable 67,420 93,259 52,487
Current tax liabilities 102,429 48,226 66,529
Lease liabilities 37,210 32,903 35,616
Other liabilities 59,374 34,434 33,725
Accrued expenses and prepaid revenues 385,390 300,800 418,628
Total current liabilities 651,823 509,622 606,985
AT THE END OF THE PERIOD 2023-06-30 528 29,542 37,062 2,392,733 2,459,865
Other
contributed Retained
Share capital capital Reserves earnings Total equity
At the beginning of the period 2022-01-01 528 27,994 4,397 1,628,644 1,661,563
Profit for the period - - 338,671 338,671
Other comprehensive income
Translation difference - - 14,112 - 14,112
Total other comprehensive income - - 14,112 - 14,112
AT THE END OF THE PERIOD 2022-06-30 528 27,994 18,508 1,863,305 1,910,336
Investing activities
Cash flow from sales of associated companies 53,174 - 53,174 - -
Investments in capitalised development -224,114 -218,814 -393,249 -375,740 -793,771
Investments in equipment -1,532 -350 -2,456 -838 -2,119
Investments in subsidiaries - -11,055 - -11,055 -11,055
Investments in other financial assets - -25 - -25 -25
Cash flow from investing activities -172,472 -230,244 -342,531 -387,658 -806,969
Cash flow for the period 28,712 -82,897 94,360 -12,620 136,800
Cash and cash equivalents at the beginning of the period 812,708 671,219 747,506 767,561 767,561
Exchange rate effect 2,788 6,545 2,343 7,762 10,981
Cash and cash equivalents at the end of the period 844,209 594,867 844,209 594,867 747,506
Non-current assets
Capitalised development 1,448,026 1,280,426 1,408,095
Licenses, brands and similar rights 24,430 50,560 37,495
Property and equipment 8,871 11,830 10,116
Shares in subsidiaries 305,812 305,812 305,812
Investments in associates - 16,791 16,766
Other long term assets 17,393 17,393 17,393
Total non-current assets 1,804,532 1,682,811 1,795,677
Current assets
Accounts receivable 228,243 134,386 255,031
Receivables from group companies 1,700 38,997 79,656
Tax assets 31,225 7,307 -
Other receivables 50,897 51,428 28,163
Prepaid expenses and accrued revenues 85,669 50,470 59,969
Cash and cash equivalents 660,298 357,111 448,013
Total current assets 1,058,032 639,699 870,832
Equity
Restricted equity
Share capital 528 528 528
Capitalised development reserve 1,448,026 1,280,426 1,408,095
Non-restricted equity
Share premium reserve 29,542 27,994 29,542
Retained earnings 66,865 -113,859 -237,669
Profit for the period 215,568 171,011 551,925
Total equity 1,760,529 1,366,100 1,752,422
Current liabilities
Accounts payable 60,481 61,523 45,619
Liabilities to group companies 239,440 86,980 28,016
Current tax liabilities - - 4,352
Other liabilities 11,430 11,259 4,339
Accrued expenses and prepaid revenues 305,684 241,648 346,760
Total current liabilities 617,035 401,409 429,086
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 540.1 (MSEK 279.6) and MSEK 820.1 (MSEK 545.3) of the group's revenue came
from one and the same customer.
Prepaid revenue amounted to MSEK 204.0 (MSEK 181.0) at the end of the period. Of these, MSEK 187.7 is expected to be reported as revenue
during the next 12-month period, and MSEK 16.3 within 24 months.
The revenues for the quarter and the 6-month period respectively include MSEK 76.2 (MSEK 49.8) which were included in prepaid revenue at the
beginning of the period.