Paradox Interactive AB (Hold, TP: SEK260.00) - Still set to be a busy year
Q1 sales were broadly in line with our estimate and consensus, but earnings missed significantly, driven by higher than forecast amortisation, including new, small game releases that did not meet the company’s expectations. Paradox still has a promising pipeline for 2023, including a significant number of releases as soon as May, in addition to the larger titles set for release later in the year. While our 2023–2024e sales are largely unchanged, we have cut our 2023e EBIT by c5% on the soft Q1. We reiterate our HOLD and SEK260 target price ahead of what should be an eventful rest of the year.Paradox Interactive AB (publ) is a Sweden-based company engaged in the development and publishing of personal computer (PC)-based strategy games. The Company's portfolio includes PC franchises such as Europa Universalis, Crusader Kings, Victoria and the Hearts of Iron series, as well as titles on other platforms such as Lead and Gold: Gangs of the Wild West released on PlayStationNetwork for the PlayStation3 and Defenders of Ardania on iPad as well as PC. Paradox Interactive has offices in Umea and Stockholm, Sweden. Additionally, the Company works with a number of distributors worldwide and is present on several digital download portals. It owns numerous subsidiaries, among which is Triumph Studios.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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