News

Ubisoft announces 3Q numbers

Posted by: Chuck at 1/20/2005 7:48 PM
Ubisoft announced their 3Q numbers today and it's not too shabby. Sales reached $231M with fourth quarter (their calendar year runs from April 1 to March 31, must be a French thing) projected to be $273M.

Some interesting tidbits from the numbers are that Prince of Persia: Warrior Within sold 1.9M units with Tom Clancy:Ghost Recon coming in second at 1.4M units.

Another interesting detail is that their Distribution and Publishing costs as a percentage of total costs have also gone up. This may interest only me though.


UBISOFT REPORTS 2004-2005 Third Quarter Sales of $231 Million

Fourth Quarter Sales Projected at More Than $273 Million, Increased Growth and Profitability Forecast for Fiscal 2005-2006

San Francisco — January 20, 2005 — Today, Ubisoft, one of the world’s largest videogame publishers, announced financial results for the third quarter of fiscal year 2004-2005. Third quarter sales totaled $231 million and Ubisoft projects record fourth quarter 2004-2005 sales of more than $273 million.

Excellent holiday season in 2004: all major titles successful:
- Prince of Persia Warrior WithinTM: 1.9 million copies sold in one month
- Tom Clancy’s Ghost Recon® 2: 1.4 million units sold in seven weeks
- The Settlers®: Heritage of KingsTM (PC): 220,000 units sold in five weeks in Germany alone

Ubisoft strengthens its rank among international publishers in 2004*:
In 2004, for all platforms combined, Ubisoft ranked third in France, fourth in the United Kingdom and Germany and fifth in Canada. Ubisoft is the sixth largest independent publisher for consoles in the United States.

Record sales activity expected in the fourth quarter; objectives for 2004/2005 confirmed:
Four major titles will be launched in the fourth quarter (January-March 2005):
-Tom Clancy’s Splinter Cell® Chaos TheoryTM, the third installment in a series that has already sold 9.6 million copies since its launch in 2001; -Brothers In Arms Road to Hill 30TM, one of the new brands created during this fiscal year, is Ubisoft’s first foray into the important segment of historical military games; -Cold FearTM, the year’s second new brand, will usher the Group into the market for action-horror games; -Tom Clancy’s Rainbow Six LockdownTM on Xbox® and PlayStation®2, the fourth episode in the Tom Clancy’s Rainbow Six series, replaces the release of Far Cry Instincts™. As with its predecessors, technological advances and an enhanced screenplay coupled with a revolutionary new multiplayer mode are sure to make this yet another blockbuster title.
Other new releases will include The Settlers®: Heritage of KingsTM (PC), available worldwide in February; Playboy The Mansion™; Disney’s Winnie the Pooh Rumbly Tumbly Adventure and Silent HunterTM III.

Ubisoft confirms its objectives for the year:
-Fourth quarter earnings of more than €220 million ($273 million U.S.) -Annual sales: up 10 percent (at constant exchange rates)
-Earnings before interest and tax: €40-45 million ($50-56 million U.S.) according to French accounting standards and €38-43 million ($47-53 million U.S.) according to the US GAAP pro-forma standard
-Net income excluding exceptional items (before depreciation of goodwill and business assets): €18-22 million ($22-27 million U.S.) according to French accounting standards and €17-21 million ($21-26 million U.S.) according to the US GAAP pro-forma standard -Net free cash flow (excluding acquisitions): more than €10 million ($12.4 million U.S.)

2005/2006: Ubisoft anticipates increased growth and profitability:
Given the superior quality that marks the portfolio of games set for release in the upcoming fiscal year, the Group is targeting sales in excess of €600 million ($744 million U.S.) – representing growth of at least 12 percent – and earnings before interest and tax of more than €55 million ($68 million U.S.) according to French accounting standards.
Ubisoft’s unique assets:
Since 1996, Ubisoft has created unique assets through a selective and disciplined investment strategy:
-Eight multi-million brands (compared to three in 2000/2001), expected to generate sales of at least €360 million ($447 million U.S.) over the fiscal year (compared to €33 million in 2000/2001).
-The second largest production force in the world (1,760 employees in 11 studios), providing the Group with a development capacity whose quality and creativity have been recognized with numerous awards.
-A worldwide distribution network that gives the Group direct access to gamers throughout every major region (21 countries).
-A 29 percent share in Gameloft, a global leader of games for mobile phones, a fast-growing sector with exceptional prospects for growth and profitability.

By establishing and developing these unique assets, Ubisoft was able to post growth of 150 percent in its operations between 2001 and 2004, the second highest rate among independent publishers**. At the same time, the Group expects to see a five-fold increase in its pre-tax earnings over the 2001-2005 period.

“Ubisoft is well on its way to meeting its fiscal-year objectives and can count on an excellent year in 2005/06. This proves that our unique assets, brands and studios, are generating significant growth and profitability," stated Yves Guillemot, CEO of Ubisoft.


Consolidated sales
(in millions of euros) 2004/05 2003/04 2004/05 vs. 2003/04 2003/04 vs. 2002/03
First quarter 62 66 -6% +107%
Second quarter 68 63 +8% +21%
Third quarter 186 228 -18% +20%
Nine-month sales 316 357 -11% +30%
Note: the fiscal year runs from April 1 to March 31.


The complete electronic version of the presentation given by Ubisoft’s management for its Q3 sales announcement can be consulted on the company website: www.ubisoftgroup.com

Notes:
Net free cash flow is defined as the net cash flow from operating transactions minus investments related to the operating cycle (excluding financial investments and investments in external growth).

* France: source: Gfk, all formats; independent publishers; in value over an 11-month period / Germany: source: Gfk, all formats; independent publishers; in value / United Kingdom: source: Chart Track; all formats; independent publishers; in volume / United States: source: NPD; consoles; independent publishers; in value.
** Calculated on the basis of each company’s published sales figures.

Disclaimer: This statement may contain financial data evaluated, information on future projects and transactions and future economic results/performance. Such valuations are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly with the actual results that shall be published. The financial data evaluated have been presented to the board of directors and have not been audited by the Auditors. [Additional information is specified in the last Ubisoft Background Paper filed on September 28, 2004 with the financial markets authority].


© Ubisoft Entertainment. All Rights Reserved. Splinter Cell, Splinter Cell: Pandora Tomorrow, Splinter Cell Chaos Theory, Sam Fisher, Ghost Recon, Far Cry, Far Cry Instincts, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries.
© Red Storm Entertainment. All Rights Reserved. Rainbow Six, The Settlers, The Settlers Heritage of Kings, Red Storm, and Red Storm Entertainment are trademarks of Red Storm Entertainment in the U.S. and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company.
© 2004 Ubisoft Entertainment. Based on Prince of Persia® created by Jordan Mechner. All Rights Reserved. Prince of Persia and Prince of Persia Warrior Within are trademarks of Jordan Mechner used under license by Ubisoft Entertainment.
© 2004 Ubisoft Entertainment. All Rights Reserved. Cold Fear, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Developed by Darkworks.
© 2005 Ubisoft Entertainment. All Rights Reserved. Under license by Disney. Disney’s Winnie the Pooh © Disney.
© 2004 Gearbox Software, L.L.C. All rights reserved. Published and distributed by UBISOFT Entertainment under license from Gearbox Software, L.L.C. Brothers In Arms Road to Hill 30 is a trademark of Gearbox Software and is used under license.
© 2004 Playboy. PLAYBOY, RABBIT HEAD DESIGN, THE MANSION and BUNNY COSTUME are marks of Playboy and used under license by ARUSH Entertainment and GROOVE Games. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries.
Microsoft, Xbox, the Xbox Logos and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or in other countries. and “PlayStation” are registered trademarks of Sony Computer Entertainment Inc. All Rights Reserved. All other trademarks are the property of their respective owners.

About Ubisoft:
Ubisoft is an international producer, publisher and distributor of interactive entertainment products. A leading company in the multimedia industry, Ubisoft’s strong and diversified line-up has grown considerably, as has Ubisoft itself. As well as steadfastly continuing to partner with several high-profile companies, Ubisoft has also confirmed its presence on the global market by developing its own exceptional properties. Founded in 1986 in France, Ubisoft is now present on every continent, both through offices in 21 different countries including the United States, Morocco, Germany and China and through sales of products in over 50 countries. The group is dedicated to delivering high-quality, cutting-edge video game titles to consumers around the world. Ubisoft generated a turnover of 508 million euros for the 2003/2004 fiscal year, up 22.5% at constant exchange rates over the previous fiscal year. To learn more, visit www.ubisoftgroup.com

Appendices

Geographic distribution of sales in %

% sales % sales % sales
Q3 2003/2004 Q3 2004/2005 9 month 2004/2005
Europe 52% 51% 53%
North America 44% 45% 42%
ROW 4% 4% 5%
TOTAL 100% 100% 100%

Distribution of sales by platform in %

Q3 2003/2004 Q3 2004/2005 9 month 2004/2005
CD-ROM PC 21% 24% 26%
G-CUBE 5% 4% 6%
PS2 40% 39% 39%
PSX 1% 1% 1%
XBOX 28% 27% 22%
GBA 4% 2% 4%
DS 0% 3% 2%
Divers 1% 0% 0%
TOTAL 100% 100% 100%

Distribution of sales by activity in %

Q3 2003/2004 Q3 2004/2005 9 month 2004/2005
Development 89% 90% 85%
Publishing 9% 7% 11%
Distribution 2% 3% 4%
TOTAL 100% 100% 100%

RELEASE SCHEDULE (January 2005 – March 2005)

Crime Scene Investigation Miami (Europe) PC
Crime Scene Investigation (Europe) Xbox
Tork: Prehistoric Punk (Amérique du Nord) Xbox
Playboy The Mansion (Europe) PC / PS2 / Xbox
The Settlers: Heritage of Kings (hors Allemagne) PC
Advance Guardian Heroes (Europe) GBA
Brothers in Arms Road to Hill 30 PC / PS2 / Xbox
Silent Hunter III PC
Cold Fear PS2 / Xbox
Winnie the Pooh Rumbly Tumbly Adventure PS2 / GC / GBA
Tom Clancy’s Rainbow Six Lockdown PS2 / Xbox
Champions Return to Arms PS2
Tom Clancy’s Splinter Cell Chaos Theory PC / PS2 / Xbox
The Bard’s Tale PC / PS2 / Xbox
Myst IV: Revelation (Etats-Unis) Xbox
Rayman Hoodlums Revenge (Europe) GBA
Rayman DS
Asphalt: Urban GT (Europe) DS
Sprung (Europe) DS