JoWood suffers loss despite turnover increase
Austria-based publisher JoWood has announced figures for the first quarter of 2005, revealing a consolidated loss of $4.8m despite an increase in company turnover.
Revenues rose by 34 per cent to $3.1m over the same period, but a decline in sell-through and falling back catalogue sales resulted in an overall loss, according to JoWood.
The publisher did point out a positive cashflow of $0.70m, and noted that the fact it had not released a game during the first quarter would also account for the loss.
JoWood intends to move forward with a programme of restructuring which will curb the use of freelancers. Of the publisher's 178 members of staff, 54 are hired on a freelance basis, and many are testers. Steps will also be taken to cut costs and streamline the company's expenses generally.
The publisher is hopeful that things will improve following recent distribution agreements with Koch Media for German-speaking markets. In addition, the company will publish PS2 action RPG Legend of Kay in Japan and the US after securing the rights in a deal with Capcom.
Other forthcoming JoWood titles include Aquanox, Stargate SG-1: The Alliance and Panzer Elite Action, all slated for release later this year.