Ubisoft has reported its financial results for the six months ended September 30, with sales during the period down 52 per cent year-on-year to €166 million.

Due to the sharp decrease in sales, the company expects to report an operating loss of around €80 million for the first half, compared with an operating income of €33 million during the first six months of 2008-09.

The figures are in line with Ubisoft’s previously issued guidance, and the publisher expects a significant upturn in the second half “thanks to a product mix weighted with high-contribution titles”. Ubisoft confirmed its outlook for the full business year of €1.040 billion in sales and operating income before stock-based compensation representing at least seven per cent of sales.

"As expected, in the first half of fiscal 2009-10 the market was very difficult both for Nintendo DS games and for our back-catalogue titles, with few new releases,” said Ubisoft CEO Yves Guillemot. “The second half of the year should be significantly more favorable with a return to strong growth and profitability.

“Although the environment is still uncertain and the full effect of the sharp drop in console prices has yet to be felt, Ubisoft has the advantage of a diversified and very high-quality line-up for the crucial holiday period, including the blockbusters Assassin’s Creed 2 and James Cameron’s Avatar: The Game for the Xbox 360 and PS3 and a wide-ranging portfolio of very well-calibrated games for the Wii such as Your Shape, Just Dance, Shaun White and Rabbids Go Home. Growth is expected to be even stronger in the fourth quarter, fueled by the launches of Tom Clancy’s Splinter Cell Conviction, Red Steel 2 and R.U.S.E.

“Finally, thanks to the investments we have made in recent years to develop our creative workforce, we will be launching numerous initiatives and innovations in the short and medium-term in all segments of the industry, both for current and future consoles and for online games."