The operating loss for the last quarter amounted to nearly $30 million.
Paradox Interactive's financial results for the fourth quarter turned out to be mixed. On the one hand, the company significantly increased its revenue — income rose by 23% year-on-year and reached approximately $99 million. This was driven by steady sales of Age of Wonders 4, Cities: Skylines II, and Crusader Kings III, as well as the release of new projects — Europa Universalis V and Vampire: The Masquerade — Bloodlines 2.
However, the growth in turnover did not save the quarter from a serious profit failure. Paradox recorded an operating loss of around $28 million — a sharp deterioration in performance compared with last year. The key reason was Vampire: The Masquerade — Bloodlines 2, whose sales were significantly below the publisher's expectations.
Because of the project, the company had to recognize write-downs and amortization totaling more than $77 million. It was precisely these adjustments that turned the quarter from profitable to loss-making. Net profit after taxes fell to approximately $22 million versus $34 million a year earlier, and earnings per share slipped into negative territory.
At the same time, Paradox's overall financial position remains stable. Operating cash flow amounted to about $56 million, and the volume of cash in the company's accounts by the end of the quarter reached approximately $151 million. This allows the company to continue investing in new projects and supporting its current operations.
