Ubisoft Toasts A Successful Year News
Jon Wilcox
26/04/2007
Sales surpass expectations as the publisher increases financial forecasts for the coming fiscal year...
Ubisoft has today confirmed that the 2006/07 fiscal year has been a successful one in terms of sales, with both fourth quarter and full year results showing significant increases.
Sales in the fourth quarter of the year, which ended on March 31st, saw the publisher record an increase of 37.4% up from 144 million Euros (£98.4 million) in 2005/06 to 197 million Euros (£134.6 million). Full year sales were also up by nearly 25% to 680 million Euros (£464.6 million), up from 547 million Euros (£373.7 million) the previous year. Ubisoft confirmed that sales in the fourth quarter surpassed the minimum target of 152 million Euros (£103.8 million) set in the third quarter results by 45 million Euros (£30.7 million). The publisher targeted several reasons for the success, including the performance of Ghost Recon Advanced Warfighter 2 (sales of 1 million on Xbox 360), and TMNT (1.1 million sales across eight platforms). Several titles that launched in the third quarter have also continued to sell successfully into the fourth quarter including Rainbow Six: Vegas (1.7 million sales since launch), Rayman Raving Rabbids on Wii (830,000 copies since launch), and Red Steel on Wii (950,000 units since launch). The multi-title Petz franchise has also performed well for the publisher, with over 3.5 million copies solid during the entire 2006/07 fiscal year.
Yves Guillemot, CEO 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."
As a result of its sales performance, Ubisoft is increasing its expectations for the Current Operating Income from 4% of sales to 5.5%, along with predicting a positive net cash position of 50 million Euros (£34.2 million) - up from the previous objective of zero net debt.
Looking ahead, the publisher has confirmed that it's raising expectations for the 2007/08 sales target from approximately 750 million Euros (£512.4 million) to 800 million Euros (£546.5 million), reflecting the confidence in its line up for the year ahead. 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, End War 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 the Wii and Nintendo DS systems. Ubisoft should continue to win market share and significantly boost its profitability in 2007-08."
Ubisoft also confirmed that first half sales should be in the region of 120 million Euros (£82.0 million), up 71% on the same period in 2006/07, due to the upcoming adaptation of Sony Pictures' Surf's Up, four titles for Wii and DS each, and the PlayStation3 version of Rainbow Six: Vegas.
Finally, the publisher announced that in terms of sales it had become the third largest independent publisher in the US up from 4th the previous year. In the UK, Ubisoft remains in the second position.