Paradox rise after 'weak' but 'mildly' better-than-expected Q3

Paradox Interactive AB (publ)

16/11/2021 09:03

** Shares of Paradox  PDXI.ST  surge 8% despite a 42%
year-on-year revenue decrease and operating profit turning to
loss reported by the Swedish video game publisher for
June-September period  urn:newsml:reuters.com:*:nFWN2S62LD
    ** "Paradox's 3Q results are weak but, helpfully, no more so
than our or consensus expectations which will provide some
relief," Citi says
    ** According to the brokerage, Q3 revenues at SEK 289
million came in almost exactly in line with its forecasts (SEK
289 million) and mildly better than VA consensus (SEK 282
million)
    ** Overall level of operating loss was mildly better than
them and consensus had estimated, Citi adds
    ** The broker also points out Paradox' new CEO is candid
about what has 'gone wrong' and outlines turnaround plan -- "the
question is how quickly this can be implemented and whether, in
the meanwhile, there is incremental risk to consensus
forecasts," Citi adds though 



 (Reporting by Agnieszka Gosciak)
 ((agnieszka.gosciak@thomsonreuters.com))