Paradox set to eye ‘interesting acquisitions’ following strong 4th quarter

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Paradox Interactive closed out the fourth and final quarter of its fiscal year with reports of steady year-on-year increases in both revenue and operating profit, in part due to the release of additional game expansions and DLC.

Thanks to this, and overall growth during the 2016 fiscal year, Paradox CEO Fredrik Wester notes that the company is in a comfortable position to take on larger investments and look at “interesting acquisitions” down the line.

Revenue for the fourth quarter came in at SEK 198.4 million (~$22 million), up 56 percent from the SEK 126.8 million (~$14.2 million) reported during the same period last year. Likewise, operating profit saw a 96 percent year-on-year increase settling in at SEK 85.9 million (~$9.6 million) for the fourth quarter.

Along with the release of Obsidian Games’ Tyranny, several games published by Paradox saw new expansions or downloadable content this past quarter, which the company says largely contributed to the year-on-year revenue increase. Expansions for Europa Universalis IV, Stellaris, Hearts of Iron IV, and Cities: Skylines all hit digital shelves during this past quarter, with Cities: Skylines additionally seeing an additional DLC release and a new content creator pack.

For the full 2016 fiscal year ending December 31, overall revenue amounted to SEK 653.7 million (~$73.4 million), which is 8 percent higher the total revenue gained during the 2015 fiscal year. Operating profit for all four quarters came in at SEK 308 million (~$34.6 million), an increase of 27 percent versus the previous year.

“After the IPO one of the most frequently asked questions I receive is ‘when are you planning to exit?’ As an entrepreneur and CEO it’s hard for me to understand that question,” said Wester. “A more suitable question in my opinion would be ‘how do you plan to scale?’ In many ways we are just getting started on our journey.”

“We are cash flow positive and already have a good cash position, enabling us to do larger investments and look at interesting acquisitions. However, it’s important to stress that we are in no hurry, making the right decisions for Paradox of today and Paradox of tomorrow is the priority above all.”

[Source:-Gamasutra]