Paradox Interactive Annual Report: Revenue Fell by 17%, Company's Business Underwent Numerous Changes

Paradox Interactive has shared the financial results for the fourth quarter and the entire year of 2024. Here are the key takeaways from the report.

Cities Skylines II

Fourth Quarter 2024 Data

Revenue for Paradox Interactive decreased by 29% compared to October-December 2023, falling to 709.1 million SEK (64.87 million USD).
However, operating profit surged by 219%, reaching 395.3 million SEK (36.17 million USD). This was partly because, a year prior, Paradox Interactive wrote off 175.8 million SEK (16 million USD) in game development expenses, which it did not do in the fourth quarter of 2024.
The top-grossing games of the quarter were Cities: Skylines, Cities: Skylines II, Crusader Kings III, Hearts of Iron IV, and Stellaris.

Annual revenue for Paradox Interactive also dropped — down 17% to 2.2 billion SEK (201.3 million USD).
PC games generated 87.4% of revenue. Console projects accounted for 9.3%, while mobile games contributed 2.3%.
Regarding geographical distribution, the majority of the revenue (86.5%) came from the United States. In its home country, Sweden, the company earned 2.97% of its revenue.
Annual operating profit increased by 10% to 721.4 million SEK (66 million USD).
Paradox Interactive CEO Fredrik Wester stated that 2024 was a challenging year for the company. While successfully developing released games, some new projects had to be canceled or postponed. In the current market conditions, Paradox Interactive could not afford to "sit idle but had to constantly strive to improve."
“We strengthened our publishing business, reorganized cooperation with third-party developers, modernized risk management, and created the best conditions for developing our own games, focusing on games we know well,” listed Wester, highlighting the changes within the company.