Paradox Interactive has released its year-end financial report, providing a comprehensive overview of its earnings and losses for the benefit of its investors. The latest quarter has proven to be a significant one for the company, with revenue increasing by 23% compared to the same quarter last year, marking it as Paradox’s “second-best quarter ever.” This news is certainly a cause for celebration.
However, the report also revealed a stark contrast in operating profit, which plummeted by 162%, resulting in an overall loss of 245.4 million Swedish kronor (approximately million). The primary culprit behind this downturn is the underwhelming performance of Vampire: The Masquerade – Bloodlines 2, which did not meet sales expectations. This shortfall led to a substantial write-down of 355 million kronor, a significant setback for the company.
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Had it not been for this write-down, Paradox’s profit would have amounted to around 110 million kronor. While this figure still falls short of the operating profit of 395.3 million kronor from the same quarter last year, it nonetheless reflects a profit position.
In addition to the challenges posed by Bloodlines 2, Paradox’s CFO, Alexander Bricca, highlighted the impact of fluctuating foreign exchange rates on the company’s financial performance. He noted that the dollar depreciated by approximately 12% and the euro by 5-6% during the quarter, which significantly affected the company’s top-line results.
Despite these challenges, Bricca attempted to maintain an optimistic outlook, emphasizing that the revenue figures still reflect a strong quarter overall. However, the shadow of Bloodlines 2 looms large over the company’s financial landscape. While Paradox has taken full responsibility for the financial implications of the game’s performance, the future of the franchise remains uncertain, leaving fans to wonder if a sequel will materialize anytime soon.
