Webmedia seeking growth in Middle East and Africa

11.02.2009, 11:21

Webmedia Group, Estonia’s largest computer software maker, aims to weather a slump in its home Baltic markets by tapping demand from governments in the Middle East and Africa.

The closely held Tallinn-based company aims for a more than 30 percent increase in net profit and sales this year, writes Bloomberg, quoting Chief Executive Officer Priit Alamäe.

“We definitely did not foresee this crisis but we have been reinvesting all of the profits in the last three years,” Alamaee said. “We have consciously invested in markets and products that are not cyclical. Eastern Europe is already a maturing market and we are looking a lot more at Africa and the Middle East now.”

Webmedia’s net income rose by “about” 30 percent to “somewhat below” 2 million euros last year on revenue of about 14 million euros, he said.

The effect of the global turmoil has begun to feed through to the Baltic software sector with a six-month delay, as “many companies” have started a price war, Alamaee said.

Webmedia, with about 350 staff in five countries, seeks new growth by utilizing Estonia’s success in the nationwide use of information technology services such as Internet banking or E- school, a solution used by almost half of 1.3 million Estonians which Webmedia helped to launch.