Paradox Interactive AB: Interim report January - March 2025

FIRST QUARTER

• Revenues amounted to MSEK 463.6 (MSEK 482.1), a decrease by 4 % compared to the same period last year.
• Operating profit amounted to MSEK 146.6 (MSEK 154.4), a decrease by 5 %.
• Profit after financial items amounted to MSEK 153.9 (MSEK 165.0), and profit after tax amounted to MSEK 123.7 (MSEK 126.9).
• Cash flow from operating activities amounted to MSEK 266.2 (MSEK 136.9), and cash flow from investing activities amounted to MSEK -217.3 (MSEK -47.9).  Cash flow from investing activities includes investments in shares in group companies relating to the acquisition of Haemimont Games, amounting to MSEK 97.3.
• By the end of the period cash amounted to MSEK 1,501.5 (MSEK 1,181.8).
• Earnings per share before dilution amounted to SEK 1.17 (SEK 1.20) and after dilution SEK 1.17 (SEK 1.20).
• 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

• Paradox Interactive acquired 100% of the shares in Bulgarian development studio Haemimont Games.
• New downloadable content was released to games during the period; Graveyard of Empires to Hearts of Iron IV, Mediterranean Heritage and Dragon Age to Cities: Skylines II as well as Bernard, the Alchemist, Sigrun, the Valkyrie and Shores of Sahti to Across the Obelisk.
• New ports to console for downloadable content was released during the period; Wards and Wardens to Crusader Kings III.

SUBSEQUENT EVENTS

• The publishing rights for the game Stranded: Alien Dawn, developed by Haemimont Games, was purchased from Frontier Developments.

COMMENTS BY THE CEO

We have started 2025 with a stable course and clear focus. Despite a quarter with fewer releases, some currency headwinds, and investments in our future, our core business continues to deliver strong cash flows. This gives us the freedom to think long-term, act strategically - and to build on the already very solid financial foundation we stand on.

We are following our strategy, and step by step we see how our games are increasingly becoming platforms - living ecosystems rather than individual releases. That is exactly where we want to be.

Fredrik Wester, CEO of Paradox Interactive

PRESENTATION OF REPORT

24 April 12:00 PM CEST Fredrik Wester, CEO, and Alexander Bricca, CFO, will host a livestream on Paradox's YouTube channel to present the interim report, and answer questions related to the report and the company's financial performance, https://www.youtube.com/paradoxinteractive.

Questions may be submitted in advance via our forum or by e-mailing them to ir@paradoxinteractive.com. It will be possible to e-mail questions to ir@paradoxinteractive.com during the presentation.

If you miss the presentation, it will be posted on Paradox's YouTube channel at a later time.