Paradox Interactive has released its financial report for the fiscal year ended December 31, 2024. The Swedish company continues to improve its core business after a series of failed or cancelled games.
Stellaris: Grand Archive
Financial highlights
- According to its year-end report, Paradox Interactive reached SEK 2.2 billion ($201 million) last year, down 17% from 2023.
- The US accounted for 86.5% of the company’s full-year revenue. The share of domestic sales (Sweden) was 2.97%, while 8.7% of the total came from the rest of Europe.
- PC remained the number one platform by revenue, accounting for 87.4% of the total. It is followed by console (9.2%) and mobile (2.3%).
- Operating profit grew 10% year-over-year to SEK 721.4 million ($66 million), with a margin of 33% (vs. 25% in 2023). Profit after tax amounted to SEK 584.6 million ($53.4 million), up 10% year-over-year.
- Cost of goods amounted to SEK 1.2 billion ($109.7 million), down 23% year-over-year. This includes game development, support, and operation of existing projects, as well as royalties and revenue-based payments to third-party studios.
- Paradox’s total write-downs for the entire 2024 amounted to SEK 208 million ($19 million), all of which came in Q2 when the company canceled the life sim Life by You and closed its developer Tectonic.
- Paradox CEO Fredrik Wester also shared his thoughts on the state of the company and the games industry as a whole. “While we’ve seen a couple of big successes [in 2024], many developers and projects in the industry are facing major challenges with a series of dire events as a result,” he stated.
- Despite the continued support of its core live games like Stellaris, Crusader Kings III, and Hearts of Iron IV, Paradox canceled or delayed several projects. Wester noted that in the current market environment, the company “cannot sit back and relax but must always strive to be better.”
- “We have worked on strengthening our publishing, reorganizing our work with third-party development, better managing our risk-taking and creating the best conditions for our own development, and especially focusing on games we know well,” Wester said of the way Paradox tries to improve its business.
Paradox snaps up Haemimont Games
- On February 6, Paradox Interactive announced the acquisition of Haemimont Games. It is expected to be completed within a few days.
- The deal consists of an upfront cash consideration and an earnout of similar size based on the studio’s performance. However, the parties don’t disclose the price and other financial details.
- Haemimont will become a wholly owned subsidiary of Paradox, retaining its current leadership and continuing to work on projects already in development.
- This is in line with Paradox’s plans to focus on its core business (strategy and management games), while making strategic acquisitions to strengthen its position in the niche.
- “It is a very skilled studio with long experience, deep knowledge and a close-knit team that complements our core business, and whom we already know well,” Wester said in a statement.
- Founded in 1997, Haemimont Games is a Bulgarian developer best known for Tropico 3-5, Surviving Mars, and Jagged Alliance 3.