Paradox Interactive AB (publ)

So we're live this is the Q3 2026 report stream with me Fred and I'm Alex Bricca the CFO welcome everyone welcome so we're going to take you through the numbers and the releases of the third quarter of Paradox Interactive so that is me as always I will start To summarize the third quarter, I think we have to go back to 2021 to find a quarter with as few releases as we had in this quarter. So it's safe to say that it was a back catalog that was carrying most of the revenue and the profit in this quarter. There were, like I said, three releases. Two of them were in the two last days of the quarter and all of them were in September, which was the last month of the quarter. Transport Fever 3, which is a co-publishing deal together with Swiss developer Urban Games, released on September 30, worth mentioning. New cooperation there. Another thing that happened in the quarter was our Gamescom reveals and announcements. So we announced and later on also released, obviously, Transport Fever 3. The announcement date was revealed on Gamescom. But we also announced our first... Original IP from Paradox Interactive in 10 years after World, which is a post-apocalyptic grand strategy game from one of our internal teams. We also announced LEGO Skylines, which is a new city-building game in cooperation with the Danish company LEGO, and developed by Iceflake Studios, also an internal studio in Tampere in Finland. So it's very well in line with our strategy and what we're good at. So we have really high hopes for the games to do well. We also, during the quarter, in order to focus more on our key business and our key platforms, we sold the mobile game studio Playerion to Danish company Trophy Games. and that led to a one-time revenue of 40 million SEK in the quarter. On the other hand, we have been riding off Playrion for a five-year period as well, so previously it has impacted our EBIT and negatively, so it's a positive. It didn't affect revenue though, only other income. Other income, okay. So, that was it. So as I said, very slow quarter, Transport Fever 3, second last day of September, Crusader Kings 3 by God Alone, the last day of September, the last day of the quarter, and Feeding the Future, a content pack for Surviving Mars relaunched that was also released in September and had only two, three weeks of sales before the quarter was ended. So... If we want to look at Q4, we have a bit more things going. A new expansion pass for Rage of Wonders 4, a new expansion pass for Cities Skylines 2, and releases for both games in that quarter. It's the first paid content that Iceflake Studios is creating for the game Cities Skylines 2. And we also have content for Europa 5, Crusader Kings 3 and Stellaris, and some stuff for consoles, including Switch 2. Worth mentioning is that we actually released Cities Skylines 1 and Switch 2 just yesterday, so if you haven't tried it, now is the time. And with that, I leave the word to you, Alex.

Thank you. So as always, let's go through the numbers a bit more in detail. We did 456 million on top line this year's Q3. It's 15% better compared to last year's Q3 when we did 395 million SEC. The drivers, it's what we releases and quite often it's foreign exchanges as well. So currency movements. This Q3 compared to last year's Q3, it hasn't happened much. I know the dollar has gone up 1%, maybe a little bit more. The euro has been flat, so not much of the revenue difference comes from currencies. But in terms of releases, all the change and some comes from Transport Fever 3. So we released that as you said at the very last days of September but it managed to generate substantial revenues so that created the increase compared to last year. If we look at DLCs for our existing franchises, there we released less this Q3 compared to last year. Last year we released on Stellaris, we released on Age of Wonders, Wiki3, a small one on Crusader Kings 3, and Cities 1. I think we had a couple of content creator packs and radio stations there. and as Fred mentioned this year we only released a core expansion on Crusader Kings 3 the very last day of September in the quarter and a smaller DLC on Surviving Mars.

Yes. also in September.