• JoWooD presents best operative results in company history
• Revenues increased by 10% to EUR 25 million YoY
• operative EBIT increased by 10,4% to EUR 2,7 million with an EBIT margin of 11%

•profit margin based on annual net profit of 7%

The entire annual financial report  can be downloaded from here.

*these values are not comparable to each other, as certain one-time effects are not being considered (this goes for FY 2008, as well as FY 2007)

The historical results of FY 2008 further undermine the strategic decision to reinforce the market- and distribution positioning in the international environment.

Consolidated revenues for FY 2008 increased by 10% compared with last year’s reference period. The increase of revenues compared to previous year can be attributed to the expansion of the product portfolio, the diversification of publishing- and distribution business, as well as the continuing expansion of the distribution network.

JoWooD increased its 2008 revenues by 10% in a year-on-year comparison and managed to do so while decreasing the total investment volume in new products by 31.6% in FY 2008 (EUR 4,05 million, adjusted value) compared to FY 2007 (EUR 5,93 million, adjusted value).

The operative EBIT (before one-time effects) amounts to EUR 2,74 million and has been increased by 10,4% compared to last year’s reference period.

The overall result of 2008 was strained with one-time effects in the amount of TEUR 766. These one-time effects mainly result from the high amount of break-up costs, which proceed from the strategic transition from the traditional license-/distribution business to a strengthened direct distribution business. These steps have already been announced in last year’s interim reports.

From a present point of view, all essential break-up costs that had to be carried out in the course of this strategic transition have been considered and borne in FY 2008, and have been booked with a negative impact on the result. Beginning with FY 2009, a sustainable increase of the profitability is expected medium to long-term.

Outlook 2009

In the upcoming four to six quarters two core brands will be released. With “Yoga” for Nintendo® Wii™ one of the strongest titles in the 2009 line up with respective revenue expectations will be released in the fourth quarter 2009. With JoWooD’s in-house game concept, Yoga sessions will take place in living rooms and guarantee a longlasting gaming experience by supporting the “Wii Balance Board”.

With “ArcaniA – A Gothic Tale”, the largest project in company history will be released at the end of 2009 / beginning of 2010 with a multi-platform release on a global basis.

With an equity ratio of 54%, the JowooD Group is positioned solidly within the computer- and video games industry, which in a way proved to be quite resilient to the current economic crisis.

Because of this release schedule and the available distribution structure (enforced during FY 2008), management pursues – in due consideration that further distribution expansions run as planned, the overall economic situation does not negatively affect industry growth in a lasting way, and projects in development will be released in a timely manner - the goal of achieving a company growth of 15% for FY 2009, according to corporate planning.