Paradox Interactive Full Year 2023 Earnings: Revenues Beat Expectations, EPS Lags

Paradox Interactive (STO:PDX) Full Year 2023 Results

Key Financial Results

• Revenue: kr2.64b (up 34% from FY 2022).
• Net income: kr530.6m (down 25% from FY 2022).
• Profit margin: 20% (down from 36% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: kr5.02 (down from kr6.71 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Paradox Interactive Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) missed analyst estimates by 4.0%.

The primary driver behind last 12 months revenue was the USA segment contributing a total revenue of kr2.29b (86% of total revenue). Notably, cost of sales worth kr1.38b amounted to 52% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling kr350.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how PDX's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Entertainment industry in Sweden.

Performance of the Swedish Entertainment industry.

The company's shares are down 2.5% from a week ago.

Risk Analysis

Before we wrap up, we've discovered 2 warning signs for Paradox Interactive that you should be aware of.

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