Liezen, Austria, May 29 2009; JoWooD presents first quarterly results in 2009
-   JoWooD exceeds internal planning in Q1 2009
-   Further expansion of distribution structures in Eastern Europe and Russia is being pushed, while simultaneously tightening existing core markets

The entire interim report is available online, and can be found here. 

The JoWooD Productions Software AG presents a successful first quarterly result of FY 2009. Despite the unfavourable macro-economic framework, corporate planning has been outperformed – especially regarding the net profit of the first quarter of FY 2009.

Revenue of the first quarter of FY 2009 amounts to EUR 6,24 million (previous year: EUR 6,59 million). The reason for the slight decrease in revenue was on the one hand the timeframe of the Easter business in FY 2009 (previous year: first quarter), and the implementation of further measurements regarding the distribution structure (renunciation of indirect distribution and license businesses, steering towards direct distribution business) in France and the United Kingdom on the other hand. This strategic realignment necessitated a deliberate containment of new releases on the part of JoWooD Productions Software AG, in favour of the upcoming direct distribution activities in aforementioned territories. In comparison to both of these European core markets - their contribution totalled less than in the previous year for the above mentioned reasons -, the North American revenue-based contribution has been increased by upper double-digit percentages. Main drivers of this revenue expansion were distribution titles (console platforms), already signed in FY 2008.

EBIT of the first quarter 2009 amounts to TEUR 835 and is - in accordance with corporate planning – slightly below last year’s reference period (previous year: EUR 1,04 million). Again, the reorganisation of abovementioned European core markets, as well as the higher amount of Third Party products, (distribution titles) have been decisive factors for this development. As opposed to publishing titles, distribution titles generally entail higher license expenses, at a lower investment risk at the same time. Defiant of this factor, an EBIT-margin of 13,4% has been realised successfully.

The net profit of the first quarter of FY 2009 amounts to TEUR 627, corresponding to a profit margin of approx. 10%. 

Selected (scheduled) milestones for FY 2009:

• Foundation of the subsidiary “JoWooD CIS” based in Kiev, Ukraine. The direct market penetration of Eastern European territories – or cooperation with local partners, if necessary - will be the main purpose of this entity. The funding of this next expansion step ensues through a guaranteed loan by the AWS (Austrian Economy Service – erp fund) within the scope of the East-West fund. Operational business of the company is expected to start in the third quarter of FY 2009. 
• Completion of the project “Full-retail coverage Italy” in the third quarter of FY 2009, with the objective of achieving a 80% coverage of the Italian retail market.
• Intake of first revenue-effective direct distribution activities in France and the United Kingdom per the end of the second / beginning of third quarter 2009.

Based on the results of the first quarter of FY 2009, and on the fundamental premise, that the further expansion proceeds as scheduled, 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 management of the company hangs on to its goal to achieve a growth of 15% in 2009.