Paradox Interactive’s fourth quarter showed a sharp swing in profits. Revenue increased 23% from last year to roughly $99 million (MSEK 874.8), supported by sales from Age of Wonders 4, Cities: Skylines II, Crusader Kings III, and new releases Europa Universalis V and Vampire: The Masquerade – Bloodlines 2.
Even with higher revenue, however, the company reported an operating loss of about $28 million (MSEK 245.4 , which is a 162% drop compared to last year. The main reason is Bloodlines 2, which did not meet sales expectations.
Paradox recorded write-downs and amortization of more than $77 million related to the game. That pushed the quarter from profitable to a significant loss.
Profit after tax fell to approximately $22 million, down from around $34 million last year. Earnings per share also turned negative, reflecting the impact of the Bloodlines 2 accounting adjustments.
Despite the hefty loss, Paradox remains financially stable. Cash flow from operations was about $56 million and the company ended the quarter with roughly $151 million in cash. That gives it room to invest in future projects and manage ongoing operations.
“We are now strengthening our strategic focus, reallocating resources, and creating even better conditions for future investments where we have our greatest expertise and long-term potential,” CEO Fred Wester said.
For the full year, sales were largely unchanged at about $241 million, while operating profit dropped 80% to $16 million. Earnings per share fell from SEK 5.54 ($0.63) to just SEK 1.19 ($0.13).
The company also launched Europa Universalis V, which the CEO described as an important step for the franchise. Paradox continued to release DLC and remasters for other titles throughout the quarter. The board proposed an ordinary dividend of 5 dollars per share, showing confidence in the underlying business despite the large quarterly loss.
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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