Paradox Interactive AB
(FRA:ETA)
€
16.39
-0.8 (-4.65%)
Market Cap: 1.75 Bil
Enterprise Value: 1.66 Bil
PE Ratio: 55.00
PB Ratio: 7.90
GF Score: 70/100 
Q2 2024 Paradox Interactive AB (publ) Earnings Call Transcript
Jul 25, 2024 / 10:00AM GMT
Release Date Price:
€11.88
(-0.83%)
Key Points
Positve
- Paradox Interactive AB (PRXXF) reported its fourth best quarter historically in terms of revenue, despite not releasing any major core games.
- The company maintains a strong cash flow and a stable financial position with no debt on the balance sheet.
- Successful expansions for core live games, such as Cities: Skylines 2 and Victoria 3, contributed positively to the quarter's performance.
- Paradox Interactive AB (PRXXF) continues to focus on production quality and risk assessment, aiming to release only high-quality games.
- The company has a strong market position and is cautiously optimistic about future opportunities, supported by a solid foundation and cash flow.
Negative
- The EBIT was significantly impacted by a SEK208 million write-down due to the cancellation of the game 'Life by You'.
- Profit margin dropped to 6% this quarter, compared to 42% last year, primarily due to the write-down.
- The average number of employees decreased from 674 to 594, partly due to the closure of several studios.
- The company faced challenges with its communication strategy, having announced and then canceled games, which is not optimal.
- There is a noted trend of uneven release schedules, with significant releases occurring every second quarter, leading to fluctuating revenue.
Alexander Bricca;publ;Chief Financial Officer
Paradox Interactive AB
()-
Hello, everyone, and welcome to the second quarter stream of 2024 of Paradox Interactive. I'm the CFO, Alex Bricca. And with me on Link, I have our CEO, Fred Wester. How are you doing, Fred?
Frederik Wester;publ;Chief Executive Officer
Paradox Interactive AB;Director
()- -
I'm doing really well. And I want to start by apologizing for pushing this a couple of hours forward. I'm on a different time zone. So I appreciate very much that I can still take a part of the live stream for the Q2 report.
Alexander Bricca;publ;Chief Financial Officer
Paradox Interactive AB
()-
Good to have you with us. So what do you say?
Frederik Wester;publ;Chief Executive Officer
Paradox Interactive AB;Director
()- -
So let's get started. No, let's get started. Nothing to sit
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