Paradox Interactive reported positive financial results for Q4 2024 and signed an agreement to acquire all of Haemimont Games’ shares.
Revenues were £53.7 million, a decrease of 29% compared to the same period last year. Operating profit was £31.6 million, an increase of 219%.
Paradox says that revenues in the quarter are mainly attributable to Cities: Skylines, Cities: Skylines 2, Crusader Kings 3, Hearts of Iron 4 and Stellaris. Mechabellum, developed by Game River and published by Paradox Arc, the indie Label under Paradox, was sold back to the developer for an undisclosed fee.
“We close the year with a period of high revenue and good margins, supported by strong releases, successful marketing activities, and a currency tailwind.” said Fredrik Wester, CEO of Paradox Interactive. “While we are proud of the quarter’s results and our financial position, we should not overly focus on any one period. There is a lot of variation between quarters, depending on what and how much we have released as well as which marketing activities we have carried out.”
“This makes the persistent work over time most important, especially as the successes of any given quarter are driven by efforts that have been ongoing for a longer period.” Wester concluded.
The biggest news from the financial report was that Paradox Interactive has acquired Bulgarian development studio Haemimont Games by agreeing to purchase 100% of the shares. This would seem to indicate the publisher’s strategic focus on growing in the management games genre.
“We are very happy to welcome Haemimont Games to Paradox!” said Fredrik Wester, CEO of Paradox. “They bring a tight-knit team with long experience in developing management games with many well received projects in their portfolio. Moreover, they have a strong creative streak, technology developed for their niche, a new IP in development and a strong culture that fits Paradox’s way of working. We have strong faith in their team and leadership, and our main focus now is to ensure that they can continue to create great games under new ownership.”
Following the acquisition, Haemimont Games will be a wholly owned and operated by Paradox, although the current leadership and team will remain active with the studio, and the studio’s ongoing projects will remain in development.
Haemimont Games has been responsible for a number of hits in the strategy, simulation and management genres, which includes the list of the following games:
- Stranded: Alien Dawn
- Jagged Alliance 3
- Surviving Mars
- Victor Vran
- Tropico 5
- Omerta
- Tropico 4
- The First Templar
- Tropico 3
- Glory of the Roman Empire
- Rising Kingdoms
- Imperivm III
“We’re delighted to become a part of the Paradox family!” said Gabriel Dobrev, Founder of Haemimont Games. “The cultural fit between our companies is remarkable, and we already feel at home. This partnership empowers us to push the boundaries of our games, delivering deeper and more intense experiences to our players. It also opens new horizons for our team, technology, and creative processes, which we’re eager to explore. Expect amazing new games from us!”
The acquisition consists of an upfront cash consideration and a performance-based earnout of similar size that is to be paid out over the coming years, although neither party would comment on the purchasing price at this point.
You can find out more about Haemimont Games on its official website.
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