JoWooD Productions Software AG

euro adhoc: JoWooD Productions Software AG
Annual Reports
JoWooD Productiosn Software Inc. presents the result for the first half-year 2008

@@start.t1@@--------------------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc. The issuer is responsible   for the content of this announcement. --------------------------------------------------------------------------------@@end@@

6-month report


@@start.t2@@•          Revenues in the first half year increased by 8% to EUR 12,3 million
compared to last year
•          Results exceeded corporate planning
•          Strongest titles will be released in the second half year of 2008@@end@@

___________________________________________________________________ In EUR 000s

H1 2008            H1 2007              changes in %

Revenues                         12.305 |            11.362|                          +8%
EBT                                  1.025 |              1.254|                         -18%


JoWooD Productions Software Inc. has increased its revenues for the first half year 2008 by 8% to EUR 12,3 million compared to last year´s reference period (EUR 11,36 million). Revenues and EBT exceeded corporate planning, despite flattening of revenues caused by the typical industry cycle and the particular rearrangement of releases in the second quarter.

This result undermines the management´s forecast of 20% growth in FY 2008. The release pipeline of the second half-year 2008 substantiates this estimate.

The first half year 2008 was designated to the adjustment of the distribution model and the consequent, structural changes of the company. Based on the ongoing adjustment, management of the company decided to push some of the releases (even finished projects) into the second half year 2008 out of strategic reasons, in order to execute the roll-out over the more profit-yielding and profitable (direct) distribution structure.

Despite the adjustment and reallocation of various game titles, the company generated an increase of revenues attributable to increased distribution efficiency in established markets and exceeded corporate planning for the second quarter 2008.

Revenues in the second quarter have been increased by 8.6% to EUR 5.707 million over last year´s reference period. As per June 30th, EBT amounts to EUR 175.000. Because of scheduled one-off payments in relation to the setup of the direct distribution structure, the EBT is lower than in previous year´s reference period (EUR 389.000).

In the course of market strategic measurements, the Spanish and Portuguese market has been opened up, and preparations for the tapping of the Mexican (as a consequence also the Central - and South American) market have been made. According to Management, first impacts are expected to have effect on the third and fourth quarterly results of FY 2008 already.

Clear objective of the distribution strategy is the preparation of the company for the releases of its most successful brands in the second half year 2008, FY 2009, and FY 2010. As for the upcoming second half year, the following titles are in the pipeline: Gothic 3: Forsaken Gods PC, The Guild 2: Venice PC, Hardy Boys PC, Agatha Christie: Evil Under The Sun Wii™, Music Monstar DS™, and Inkheart DS™.

From a product strategic point of view third party products will be acquired group-wide along with the own product portfolio. Third party products are complementary products to the own publishing portfolio of the company i.e. products of developers and publishers with the intention of selling their products through the widespread distribution network of JoWooD Productions Software Inc. The emphasis of these third party products is put on the genre of kids & family and casual games, with a platform orientated focus on Nintendo® DS™ and Nintendo® Wii™. In addition to above mentioned titles, the following games will be published in this area in the second half-year: Pet Pals Wii™, Australia Zoo DS™, Driver Ed DS™, Safecracker Wii™, Life Signs DS™, Paint by DS™, Paint Military Vehicles by DS™, Aquarium by DS™, Crossword challenge by DS™ etc.

Furthermore, the company takes an innovative approach in the outsourcing of development and programming services. The Indian development studio Trine Games has been assigned with the development and programming of Gothic 3: Forsaken Gods and The Guild 2: Venice. The strategic background to this step is the convincing quality (technical- as well as staff-wise), and the very attractive cost structure. Trine Games will be presented in a dedicated news-special in September 2008.


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ots Originaltext: JoWooD Productions Software AG
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Further inquiry note:
JoWooD Productions Software AG
Dr. Albert Seidl, Vorstand
Mag. Philipp Brock, Investor Relations
Tel.: +43 (0)3612 2828

Branche: Software
ISIN:      AT0000747357
WKN:        935221
Index:    WBI, ATX Prime, ViDX
Börsen:  Börse Berlin / free trade
              Börse Frankfurt / free trade
              Börse Stuttgart / free trade
              Börse München / free trade
              Wiener Börse AG / official dealing

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