Today, Ubisoft, one of the world’s largest video game publishers, reported its sales for the six months ended September 30, 2007.
Sales
Total sales for the first half of 2007-08 came to €261 million, up 51.8%, or 55.1% at constant exchange rates, compared with the €172 million recorded for the same period of 2006-07.
Sales for second-quarter 2007-08 amounted to €127 million, up 25.4%, or 27.9% at constant exchange rates, on the €102 million generated in the comparable prior-year period. This figure exceeded the forecast of approximately €105 million announced when Ubisoft reported its sales for first-quarter 2007-08. This very good performance was primarily fueled by the following:
The launch of a diverse range of games including:
- Tom Clancy's Ghost Recon Advanced Warfighter® 2 on PLAYSTATION®3 computer entertainment system, PSP™ system and PC,
- Jam Sessions™ and Imagine : Master Chef™ on Nintendo DS™,
- Blazing Angels® 2 on Xbox360® and PC, The Settlers® on PC, and the multi-platform release of Surf's Up™ in Europe.
Sustained excellent sales levels for back catalog games as well as titles released during the first quarter of the fiscal year, which accounted for almost 40% of overall sales for the second quarter.
In first-half 2007-08, 75% of the Group’s sales came from games for new-generation consoles, compared with 40% one year earlier.
Yves Guillemot, CEO of Ubisoft stated "Ubisoft has turned in a very solid first-half showing and has continued to win market share on new-generation consoles. For the first 9 months of the 2007 calendar year Ubisoft was ranked as the leading independent publisher for the Nintendo DS, as well as number 2 on Wii, number 3 for the PLAYSTATION 3 system and PSP™ system and number 4 for the Xbox360 system. The strong sales performance and our positioning on high gross margin consoles has lead to a sharp profitability improvement for the first half of 2007-08. Finally, we have a particularly strong games portfolio for the rest of the fiscal year and we expect to reap the benefits of the recent PLAYSTATION 3 and Xbox360 hardware price reductions."
Outlook
Strong improvement in current operating income expected for first-half 2007-08
Based on the information currently available, Ubisoft expects to record a positive figure for current operating income before stock options in first-half 2007-08, versus a loss of €33.6 million in the first six months of 2006-07.
Third-quarter 2007-08 sales
Ubisoft has a high-quality line-up for the third quarter, including the following releases:
- The new highly-anticipated brands, Assassin's Creed™ and Haze™.
- Naruto™: Rise of a Ninja, based on the license for the popular Manga, and Beowulf, which will coincide with the release of the movie.
- Rayman Raving Rabbids® 2, the sequel to one of the best-performing games of 2006-07.
- Numerous ranges of casual games structured around three strong labels - Imagine™, Petz® and MyCoach.
In view of these releases, Ubisoft expects sales for third-quarter 2007-08 to come in at around €330 million, representing a year-on-year increase of 6%.
2007-08 games release schedule updated
As a result of the positive trends observed during the first half of the year as well as the positive outlook for the third quarter, Ubisoft has decided to postpone the release of certain games. As a result:
- 6 franchises are now scheduled for release in 2007-08 (Brothers in Arms®, Far Cry®, Rayman Raving Rabbids®, The Settlers®, Tom Clancy's Splinter Cell® and an unannounced franchise), compared with the previously announced 7.
- 3 new brands are now scheduled for release in 2007-08 (Assassin's Creed™, Haze™, Tom Clancy's End War™), compared with the previously announced 6.
The four games concerned will now strengthen fiscal 2008-09.
Outlook for full-year 2007-08 confirmed
In light of our first-half performance as well as the visibility for the second half, Ubisoft is confident of achieving its previously announced targets for full-year 2007-08, i.e. sales of approximately €825 million and current operating income before stock options representing at least 9% of sales.
Recent highlights
Market share: In the first nine calendar months of 2007, Ubisoft was the number 4 independent publisher in the United States with market share of 5.3% (compared with number 5 and 5.2% one year earlier); number two in Europe with 7.9% market share (compared with number 2 and 6.9%), number 2 in France with 7.4% market share (compared with number 2 and 6.9%); number 2 in the United Kingdom with 9% market share (compared with number 2 and 7.8%); and number 2 in Germany with 6.9% market share (compared with number 3 and 6.6%).
Development studio opened in Chengdu, China: Ubisoft Chengdu will initially focus on internal outsourcing and in time will be responsible for developing online titles for PC, consoles and handhelds. The studio’s goal is to expand to 200 developers by the end of 2008.
New Tom Clancy air combat game: Ubisoft has announced the creation of a new Tom Clancy brand being developed by its Bucharest studio for next-generation consoles and PC. Scheduled for a 2008 release this will be the first aerial-based game in the Tom Clancy series.
Disclaimer
This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly compared with the actual results that will be published. The estimated financial data have been presented to the Board of Directors and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on June 27, 2007 with the French Financial Markets Authority (l'Autorité des marchés financiers).
Financial calendar
Release Date
First-half 2007-08 results November 20, 2007
This date is subject to change and will be confirmed at a later stage.
Sales
Total sales for the first half of 2007-08 came to €261 million, up 51.8%, or 55.1% at constant exchange rates, compared with the €172 million recorded for the same period of 2006-07.
Sales for second-quarter 2007-08 amounted to €127 million, up 25.4%, or 27.9% at constant exchange rates, on the €102 million generated in the comparable prior-year period. This figure exceeded the forecast of approximately €105 million announced when Ubisoft reported its sales for first-quarter 2007-08. This very good performance was primarily fueled by the following:
The launch of a diverse range of games including:
- Tom Clancy's Ghost Recon Advanced Warfighter® 2 on PLAYSTATION®3 computer entertainment system, PSP™ system and PC,
- Jam Sessions™ and Imagine : Master Chef™ on Nintendo DS™,
- Blazing Angels® 2 on Xbox360® and PC, The Settlers® on PC, and the multi-platform release of Surf's Up™ in Europe.
Sustained excellent sales levels for back catalog games as well as titles released during the first quarter of the fiscal year, which accounted for almost 40% of overall sales for the second quarter.
In first-half 2007-08, 75% of the Group’s sales came from games for new-generation consoles, compared with 40% one year earlier.
Yves Guillemot, CEO of Ubisoft stated "Ubisoft has turned in a very solid first-half showing and has continued to win market share on new-generation consoles. For the first 9 months of the 2007 calendar year Ubisoft was ranked as the leading independent publisher for the Nintendo DS, as well as number 2 on Wii, number 3 for the PLAYSTATION 3 system and PSP™ system and number 4 for the Xbox360 system. The strong sales performance and our positioning on high gross margin consoles has lead to a sharp profitability improvement for the first half of 2007-08. Finally, we have a particularly strong games portfolio for the rest of the fiscal year and we expect to reap the benefits of the recent PLAYSTATION 3 and Xbox360 hardware price reductions."
Outlook
Strong improvement in current operating income expected for first-half 2007-08
Based on the information currently available, Ubisoft expects to record a positive figure for current operating income before stock options in first-half 2007-08, versus a loss of €33.6 million in the first six months of 2006-07.
Third-quarter 2007-08 sales
Ubisoft has a high-quality line-up for the third quarter, including the following releases:
- The new highly-anticipated brands, Assassin's Creed™ and Haze™.
- Naruto™: Rise of a Ninja, based on the license for the popular Manga, and Beowulf, which will coincide with the release of the movie.
- Rayman Raving Rabbids® 2, the sequel to one of the best-performing games of 2006-07.
- Numerous ranges of casual games structured around three strong labels - Imagine™, Petz® and MyCoach.
In view of these releases, Ubisoft expects sales for third-quarter 2007-08 to come in at around €330 million, representing a year-on-year increase of 6%.
2007-08 games release schedule updated
As a result of the positive trends observed during the first half of the year as well as the positive outlook for the third quarter, Ubisoft has decided to postpone the release of certain games. As a result:
- 6 franchises are now scheduled for release in 2007-08 (Brothers in Arms®, Far Cry®, Rayman Raving Rabbids®, The Settlers®, Tom Clancy's Splinter Cell® and an unannounced franchise), compared with the previously announced 7.
- 3 new brands are now scheduled for release in 2007-08 (Assassin's Creed™, Haze™, Tom Clancy's End War™), compared with the previously announced 6.
The four games concerned will now strengthen fiscal 2008-09.
Outlook for full-year 2007-08 confirmed
In light of our first-half performance as well as the visibility for the second half, Ubisoft is confident of achieving its previously announced targets for full-year 2007-08, i.e. sales of approximately €825 million and current operating income before stock options representing at least 9% of sales.
Recent highlights
Market share: In the first nine calendar months of 2007, Ubisoft was the number 4 independent publisher in the United States with market share of 5.3% (compared with number 5 and 5.2% one year earlier); number two in Europe with 7.9% market share (compared with number 2 and 6.9%), number 2 in France with 7.4% market share (compared with number 2 and 6.9%); number 2 in the United Kingdom with 9% market share (compared with number 2 and 7.8%); and number 2 in Germany with 6.9% market share (compared with number 3 and 6.6%).
Development studio opened in Chengdu, China: Ubisoft Chengdu will initially focus on internal outsourcing and in time will be responsible for developing online titles for PC, consoles and handhelds. The studio’s goal is to expand to 200 developers by the end of 2008.
New Tom Clancy air combat game: Ubisoft has announced the creation of a new Tom Clancy brand being developed by its Bucharest studio for next-generation consoles and PC. Scheduled for a 2008 release this will be the first aerial-based game in the Tom Clancy series.
Disclaimer
This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly compared with the actual results that will be published. The estimated financial data have been presented to the Board of Directors and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on June 27, 2007 with the French Financial Markets Authority (l'Autorité des marchés financiers).
Financial calendar
Release Date
First-half 2007-08 results November 20, 2007
This date is subject to change and will be confirmed at a later stage.
