Ubisoft reported sales figures for its fiscal year 2006/2007 (raking in a tasty $870 million). Between Europe and America, Ubisoft ranked first and/or second in third-party publishing for the Wii, DS, and Xbox 360, with plenty of those sales stemming from titles like Splinter Cell Double Agent, Rainbow Six Vegas, and Rayman Raving Rabbids.
UBISOFT REPORTS FOURTH QUARTER FISCAL YEAR 2006/2007 SALES
Fourth Quarter Sales Up 37.4 Percent to €197 Million ($252.16 million U.S.) Outstripping Targets
Full Year Sales Up 24.4 Percent to €680 Million ($870.4 million U.S.)
Forecasts Revised Upwards for 2006/2007 Current Operating Income and Net Cash Position, as Well as for 2007/2008 Sales
PARIS, April 26, 2007 – Today, Ubisoft, one of the world's largest video game publishers, reported its sales for the fourth fiscal quarter ended March 31, 2007.
Sales
Sales for the fourth quarter of 2006-07 came to €197 million ($252.16 million U.S.) up 37.4 percent, or 41.7 percent at constant exchange rates, compared with the €144 million ($184.32 million U.S.) recorded for the same period of 2005-06. Full-year sales for fiscal 2006-07 totaled €680 ($870.4 million U.S.) versus €547 million ($700.16 million U.S.) for fiscal 2005-06, representing an increase of 24.4 percent, or 27.2 percent at constant exchange rates.
Fourth-quarter sales beat the €152 million ($194.56 million U.S.) minimum target Ubisoft projected in its third-quarter sales figures announcement by €45 million ($57.6 million U.S.). This superior performance was fueled by the following factors:
Robust performances of two key games launched during the quarter :
-Tom Clancy's Ghost Recon Advanced Warfighter® 2 got off to an excellent start with 1 million units sold on the Xbox 360(TM) video game and entertainment system from Microsoft. Launched just one year after the first game, this success highlights the proven strength of the Tom Clancy's Ghost Recon® franchise.
-Teenage Mutant Ninja Turtles® (TMNT(TM)) also turned in a good showing with more than 1.1 million units sold for its launch on eight platforms.
Continued success of games launched in previous quarters, including:
-Tom Clancy's Rainbow Six® Vegas (1.7 million units sold since the game was launched).
-Wii games, particularly Rayman® and Red Steel(TM) which have sold more than 830,000 and 950,000 units respectively since their launch.
-The Petz® series of games, which collectively sold 3.5 million units during the fiscal year.
During the first three months of the calendar year, Ubisoft continued to grow faster than the sector and gained new market share:
-Second independent publisher in Europe, with growth of 31 percent (compared with market growth of 15 percent) and market share of 8.6 percent versus 7.6 percent in the first quarter of 2006. Ubisoft was ranked as the number one independent publisher on Wii(TM), the Nintendo DS(TM) and the Xbox 360(TM).
-Third independent publisher in the United States, with growth of 41 percent (compared with market growth of 28 percent) and market share of 6.7 percent versus 6.1 percent in the first quarter of 2006. Ubisoft was ranked as the number one independent publisher on Wii(TM) and number two on the Nintendo DS(TM) and Xbox 360(TM).
Full-year 2006-07 Forecasts for Current Operating Income and Net Cash Position
Due to its strong sales performance, Ubisoft has revised its target for full-year current operating income to approximately 5.5 percent of sales, higher than the previous guidance of approximately 4 percent of sales. In addition, the Company expects to achieve a positive net cash position of approximately €50 million ($64 million U.S.) sharply up on the former objective of zero net debt.
Yves Guillemot, chief executive officer of Ubisoft, stated: "Our fourth quarter performance was an excellent way to round off 2006-07, a year in which we exceeded all of our targets. We have not only confirmed the strong position of our key franchises Splinter Cell, Ghost Recon, Rayman, and Rainbow Six but have also launched new brands in the form of Red Steel and Heroes of Might & Magic. Our investment in games for the Xbox360, Wii and Nintendo DS systems has paid off and we have successfully broken into the casual games segment with the Petz series of games (Catz, Dogz and Horsez). Finally, above and beyond the recognized quality of our internal development studios, this year has confirmed the increasingly important role of our Publishing and Third Party Development divisions.”
Outlook for 2007-08
Outlook for Full-Year 2007-08
Ubisoft has raised its 2007-08 sales target to approximately €800 million ($1.024 billion U.S.) – compared with the previous forecast of between €750 million ($960 million U.S.) and €766 million ($980.48 million U.S.) – in order to reflect the quality of its games line-up and the favorable outlook for the sector. Ubisoft is maintaining its previously-announced objective for current operating income before stock options to represent at least eight percent of sales.
Based on the provisional games release schedule, the first half of 2007-08 is expected to account for a larger portion of full-year sales than in the past.
Consequently, Ubisoft expects First-Quarter 2007-08 sales to be up 71 percent to approximately €120 million ($153.6 million U.S.) driven by:
-The video game based on Sony Pictures Animation's feature-length CG animated film Surf's Up(TM).
-Four new games for Wii(TM) and four for the Nintendo DS(TM).
-Tom Clancy's Rainbow Six® Vegas on the PLAYSTATION®3 computer entertainment system.
Yves Guillemot concluded: "In 2007-08, Ubisoft will have the best line-up in its history with the launch of seven franchises including Brothers In Arms and Splinter Cell; six new brands, including Assassin's Creed, EndWar and Haze; and four licensed games, including Surf's Up, Lost and Naruto. We intend to reap the full benefits of the ramp-up of new generation consoles and grow, again this year, our presence in the casual market on Wii and Nintendo DS systems. Ubisoft should continue to win market share and significantly boost its profitability in 2007-08.”
Significant Events of the Quarter
Market share: During the first three months of the year, Ubisoft has been ranked 3rd independent publisher in the US with 6.7 percent market share (compared to 4th with 6.1 percent the previous year), 2nd in France with 8.5 percent market share (compared to 2nd and 8.2 percent), 2nd in the UK with 10.3 percent market share (compared to 2nd and 8.6 percent) and 3rd in Germany with 7 percent market share (compared to 3rd and 6.1 percent).
Acquisition of Anno® (April 11, 2007): With five million units sold to date, Anno® is one of the most successful strategy games and a best-seller on the German market. This acquisition will strengthen Ubisoft's leading position in the strategy segment, Germany's most important segment and consolidate its number 2 position in this country.
New expansion plan in Quebec: Objective of creating 1,000 additional jobs by 2013 and opening a studio specialized in the creation of digital cinema content.
Conversion of 2008 warrants (BSAR): Ubisoft increased its capital by €50 million ($64 million U.S.) following the conversion into shares of 92 percent of its 2008 warrants.
New awards: Ubisoft was honored at the 10th Annual Academy of Interactive Arts & Sciences Achievement Awards, winning the award for First-Person Shooter of the Year for Tom Clancy's Rainbow Six® Vegas.
Quarterly sales
Sales
(in € millions)
2006-07
2005-06
2006-07 vs 2005-06
% change at constant exchange rates
First quarter
70
43
+62%
+64%
Second quarter
102
110
-7%
-4%
Third quarter
311
250
+24%
+27%
Fourth quarter
197
144
+37%
+42%
Full year
680
547
+24%
+27%
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 September 20, 2006 with the French Financial Markets Authority (l'Autorité des marchés financiers).
Financial calendar
Release
Date
2006-07 annual results
May 29, 2007
N.B. This date is subject to change and will be confirmed at a later stage.
About Ubisoft
Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide and has grown considerably through a strong and diversified line-up of products and partnerships. Ubisoft has offices in 21 countries and sales in more than 50 countries around the globe. It is committed to delivering high-quality, cutting-edge video game titles to consumers. Ubisoft generated sales of 680 million Euros for the 2006-07 fiscal year. To learn more, please visit
www.ubisoftgroup.com.
APPENDICES
Breakdown of sales by geographic region
% sales
% sales
% sales
% sales
Q4 2006-07
Q4 2005-06
12 months 2006-07
12 months 2005-06
Europe
53%
43%
49%
49%
North America
41%
52%
45%
45%
Rest of world
6%
5%
6%
6%
TOTAL
100%
100%
100%
100%
Breakdown of sales by platform
Q4 2006-07
Q4 2005-06
12 months 2006-07
12 months 2005-06
Nintendo DS(TM)
20%
1%
11%
6%
Game Boy Advance
3%
5%
5%
7%
Nintendo GameCube(TM)
1%
0%
1%
3%
PC/DVD-ROM
10%
15%
16%
16%
PlayStation®2
15%
12%
16%
27%
PlaySTation®3
5%
-
2%
-
PSP(TM)
4%
14%
5%
9%
Wii(TM)
14%
-
14%
-
XBOX®
0%
7%
1%
17%
XBOX 360(TM)
28%
47%
28%
15%
Other
0%
1%
0%
1%
TOTAL
100%
100%
100%
100%
Breakdown of sales by business line
Q4 2006-07
Q4 2005-06
12 months 2006-07
12 months 2005-06
Development
77%
83%
76%
85%
Publishing
14%
14%
18%
10%
Distribution
9%
3%
6%
4%
TOTAL
100%
100%
100%
100%
Games Release Schedule
First Quarter 2007-08 (April – June 2007)
BROTHERS IN ARMS® DS
Nintendo DS(TM)
CALL OF JUAREZ®
Xbox 360(TM), PC (US)
COSMIC FAMILY®
Wii(TM)
DOGZ® 2
Game Boy Advance
DRIVER® PARALLEL LINES
Wii(TM), PC
DRIVER® 76
PSP(TM)
ENCHANTED ARMS(TM)
PlayStation®3 (US)
TOM CLANCY'S GHOST RECON ADVANCED WARFIGHTER® 2
PC
GUITAR HITS®
PSP(TM)
HORSEZ®
Game Boy Advance (US)
The Elder Scrolls® IV : Oblivion(TM)
PlayStation®3 (Europe)
PRINCE OF PERSIA® RIVAL SWORDS
Wii(TM), PSP(TM)
TOM CLANCY'S RAINBOW SIX® VEGAS
PlayStation®3, PSP(TM)
RAYMAN RAVING RABBIDS(TM)
Xbox 360(TM)
resident evil 4(TM)
PC (US)
WarTech(TM) Senko no Ronde
Xbox 360(TM)
THE SETTLERS® 2 10TH ANNIVERSARY
Nintendo DS(TM)
PLATINIUM SUDOKU(TM) 2007
Nintendo DS(TM) (Europe)
SURF'S UP(TM)
US only :
PlayStation®3, PlayStation®2, Wii(TM), Xbox 360(TM), Nintendo DS(TM), PSP(TM), Nintendo GameCube(TM), Game Boy Advance, PC
© 2006 Mirage Studios, Inc. Teenage Mutant Ninja Turtles(TM) is a trademark of Mirage Studios, Inc. All rights reserved. Game © 2006 Ubisoft Entertainment. All Rights Reserved.
© 2007 Ubisoft Entertainment. All rights reserved. Published by Ubisoft Entertainment under license from Gearbox Software. Brothers In Arms is a trademark of Gearbox Software and is used under license. Gearbox Software and the Gearbox logo are registered trademarks of Gearbox Software, LLC. Developed by Gameloft.
© 2006 Ubisoft Entertainment SA and Free Radical Design Limited. All Rights Reserved. Haze is a trademark of Ubisoft Entertainment and Free Radical Design. Free Radical Design and its associated logo are trademarks of Free Radical Design Limited. Developed by Free Radical Design Limited.
© 2006 Techland. All Rights Reserved. Published and distributed by Ubisoft Entertainment under license from Techland. Call of Juarez is a trademark of Techland and is used under license.
© 2007 Ubisoft Entertainment. All Rights Reserved. Anno, Petz, Guitar Hits, Cosmic Family, Driver, Red Steel, Splinter Cell, Heroes, Heroes of Might and Magic, Assassin's Creed, Rayman, Rayman Raving Rabbids, Ghost Recon, Ghost Recon Advanced Warfighter, Ubisoft,
Ubi.com, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. The Settlers, Rainbow Six, Red Storm and Red Storm logo are trademarks of Red Storm Entertainment in the U.S. and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company.
© 2006 MTO, Inc. All Rights Reserved. Published and distributed by Ubisoft Entertainment under license from MTO. Dogzis a trademark of Ubisoft Entertainment in the U.S. and/or in other countries. Developed by MTO Inc.
The Elder Scrolls IV: Oblivion® © 2007 Bethesda Softworks LLC, a ZeniMax Media company. The Elder Scrolls, Oblivion, Bethesda Game Studios, Bethesda Softworks, ZeniMax and related logos are registered trademarks or trademarks of ZeniMax Media Inc. in the U.S. and/or other countries. Published and distributed by Ubisoft Entertainment with Bethesda Softworks LLC. All Rights Reserved.
© 2006 Ubisoft Entertainment. Based on Prince of Persia® created by Jordan Mechner. All Rights Reserved. Prince of Persia is a trademark of Jordan Mechner in the U.S. and/or other countries used under license by Ubisoft Entertainment.
© 2005, 2006, 2007 G.rev Ltd. All Rights Reserved. Published and distributed by Ubisoft Entertainment under license from G.rev Ltd. Wartechis a trademark of Ubisoft Entertainment in the U.S. and/or other countries.
© 2007 Gameloft. All Rights Reserved. Published by Ubisoft Entertainment. Platinum Sudoku is a trademark of Gameloft and is used under license.
Surf's Up: TM & © 2007 Sony Pictures Animation Inc. All rights reserved. Game Software excluding Sony Elements: © 2007 Ubisoft Entertainment. All rights reserved.
© 1990, 2006, 2007 SQUARE ENIX CO., LTD. All Rights Reserved. TITLE DESIGN: Yoshitaka Amano. CHARACTER DESIGN: Akihiko Yoshida. ILLUSTRATION © 1990, 2006 Yoshitaka Amano. FINAL FANTASY, SQUARE ENIX and the SQUARE ENIX logo are registered trademarks of Square Enix Co., Ltd.
Lost. Under license by © Touchstone Television. All Rights Reserved.
Naruto. © 2002 MASASHI KISHIMOTO. This product is manufactured, distributed and sold under license from TV TOKYO Media, LLC. All Rights Reserved.
”PlayStation”, "PLAYSTATION” and the "PS” Family logo are registered trademarks of Sony Computer Entertainment Inc.
Microsoft, Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks of the Microsoft group of companies.
Nintendo DS, and the Wii logo are trademarks of Nintendo. © 2006 Nintendo.
