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Q3 Ubisoft Sales Rise

Kris Graft's picture

By Kris Graft

January 22, 2009

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Paris, France-based Ubisoft touted software diversity as it announced on Thursday fiscal Q3 results that slightly beat sales guidance.

The publisher posted revenues for the quarter ended December 31 of €508 million, up 13 percent year-on-year, beating guidance of €500 million.

Ubisoft attributed the performance to "diversity and quality" within the holiday games lineup.

The firm noted a "solid showing" from Q3 release Far Cry 2, which generated sell-in of 2.9 million units, primarily driven by European sales, according to CEO Yves Guillemot.

Rayman Raving Rabbids TV Party sold 1.5 million units.

December's Prince of Persia sold 2.2 million units, but Ubisoft still categorized the flagship title's sales as a "slower" start, although the company recently said it expects a long and steady sales trend.

During an earnings call, Guillemot was particularly pleased with the new Shaun White snowboarding game, which sold well "especially" on the Wii, which takes advantage of the Wii Balance Board. Across all platforms, the game sold 2.3 million units worldwide.

Software sales on Nintendo consoles made up 44 percent of Ubisoft's sales, indicating the publisher is in a prime position to take advantage of the market leader's growing installed hardware base.

Guillemot expressed disappointment with the sales performance of the console strategy game, Tom Clancy's End War. "We did not succeed in creating a franchise in the RTS genre with End War," he said. "It is due to quality issues, with ratings of around 80 percent compared to our expectations of 90 percent."

Revised Guidance

Ubisoft also widened the window for sales and earnings guidance for the current fiscal year, amidst an uncertain economy and "extra sales promotions" for certain games. The publisher now expects sales between €1.04 million and €1.06 million, compared with previous guidance of around €1.05 million. Operating income guidance is now between 12 and 13 percent of sales, versus previous guidance of "at least 13 percent."

The initial sales target for next fiscal year is around €1.1 billion, with operating income of at least 11 percent of sales.

For more on Ubisoft's earnings announcements, click here.