Swedish Startup Space

Paradox Sets IPO Date – Revenues Are Cut In Half

Written by on April 25, 2016
Editors Note: This post is part of a series called , presented by Breakit.

The company announces official IPO-plans after its record breaking year.

Paradox Interactive has been known in the gaming community for its extremely complicated strategy games such as the Hearts of Iron and Europa Universalis series. After months of speculation, the company has finally confirmed its upcoming IPO at First North.

“We are looking forward to offering our employees, our fans and other investors – with a genuine long term interest in the company and its games – a part in an exciting journey”, Fredrik Wester, CEO at Paradox writes in the company’s first ever quarterly report.

He is the largest shareholder with 39 percent of the company, followed by the investment company Spiltan which owns 37 percent.

The current owners are offering out 15 percent the company in the form of 16,327,400 pre-existing shares. The company has hired the crowdfunding service Pepins to publish the offer along with Avanza Bank, which is also the company’s financial advisor.

Paradox Interactive also published its report for Q1, 2016. The report shows that sales have declined by more than 50 percent since the same period last year, from almost $25 million (200 million SEK) to $11 million (93 million SEK). The decline is explained by the extremely successful launch of the city-builder game Cities: Skylines, which was launched on March 12th last year.

Operating profits also declined from $12 million (97 million SEK) to $3 million (25 million SEK).

However, revenues are expected to increase again in the next quarter with the release of Stellaris and Hearts of Iron IV.

The IPO date is 31st of May. The company valuation or share price has not been presented. But Spiltan has recently estimated the value to be somewhere between $300 million and $500 million (2,5 billion and 4 billion SEK).

Swedbank Robur has announced that it will buy shares worth $7 million (60 milllion SEK). The valuations has not been disclosed.

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