Revenue and profit up as Paradox experiences best year to date

Swedish developer-publisher Paradox Interactive just experienced its best year to date, according to the company's financials for the full-year ended December 31, 2018.

The Stellaris and Surviving Mars publisher saw full-year revenues increase by 39 percent year-on-year to SEK 1.13 billion ($120.9 million), while operating profits rose by 34 percent to SEK 455.1 million ($48.7 million). 

The company also posted its best income quarter on the books during Q4, despite not releasing any new titles. 

Paradox CEO Ebba Ljungerud said it's a result that demonstrates the strength of the firm's core strategy of developing and supporting games in the long term through continuous updates and expansions. 

She also noted the increasing appeal of Paradox's console lineup, revealing that while only a few of the company's most successful titles are available on consoles, those releases actually accounted for 12 percent of its overall revenue.

"Continuous updates and expansions give our games a long life, both in terms of number of players and recurring revenue," explained Ljungerud. "During the year, we released 16 expansions to existing games, of which six were released during the fourth quarter of 2018.

"Many of our games continue to be popular many years after release: Europa Universalis IV and Crusader Kings II were released more than five and seven years ago, respectively, but continue to attract both new and existing players.'

Moving forward, Paradox is keen to expand into other genres, and said its recent acquisition of Prison Architect developer Introversion will server as a building block for further growth within the management arena.

During 2018, the company invested SEK 304 million ($32.5 million) into game development and spent another SEK 155 million ($16.6 million) on the acquisition of studios and brands, but said it plans to spend even more in the coming year.

"It is important to point out that our growth journey is just beginning. In 2019 we will invest more than ever in building for the future," continued Ljungerud.

"Constantly adding new games and brands to our portfolio remains a core part of our strategy. It helps ensure longevity and lessens our dependency on all releases being hugely successful from day one."