By Tom Ivan
July 24, 2008
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"Ubisoft is well poised to reap the benefits of another record year expected for the video games industry"
Sales for Ubisoft’s fiscal first quarter of 2008-09, which ended June 30, came to €169 million, up 25.8 percent, or 33 percent at constant exchange rates, compared with the €134 million recorded for the same period of 2007-08.
81 percent of first quarter revenue was generated by Ubisoft’s development business, while the company’s publishing and distribution arms generated 14 percent and five percent of sales respectively.
57 percent of the firm’s sales during the quarter were made in Europe, up ten percent on the same quarter the year prior, but North American sales declined by ten percent during the same period. Rest of world sales were unchanged at nine percent.
A breakdown of sales by platform showed that DS accounted for 36 percent of first quarter revenues, compared to 16 percent last year. PS3 and PC sales accounted for 21 percent and 14 percent, up from 19 percent and six percent respectively, while Wii and Xbox 360 sales accounted for eleven percent and nine percent of revenues, down from 14 percent and 17 percent in quarter one last fiscal year. PSP, PS2, Game Boy Advance and GameCube sales all accounted for less revenue than they did during the first quarter of last year too.
The robust overall performance, which outstripped Ubisoft’s previous guidance of €154, was primarily attributable to the success of the company's 'Games For Everyone' brands including the Petz, Imagine and MyCoach lines, which represented 33 percent of sales versus eleven percent in the first quarter of 2007-08, as well as to sales of Tom Clancy's Rainbow Six Vegas 2, Assassin's Creed, Rayman Raving Rabbids 2, Haze and MyWeightLossCoach.
"Ubisoft delivered a very robust showing in the first quarter of 2008-09 against a particularly dynamic market backdrop. This achievement was especially fueled by ongoing strong growth for our Games For Everyone range where we are continuing to strengthen our leadership position,” said Ubisoft CEO Yves Guillemot.
“We are notably very pleased to see our latest work – MyWeightLossCoach – ranked among the bestsellers for the Nintendo DS. Additionally, at the E3 fair we presented one of the most ambitious games lineups for the Christmas period... As a result, Ubisoft is well poised to reap the benefits of another record year expected for the videogames industry whose growth over the first six months of calendar 2008 has exceeded forecasts."
For the second quarter of 2008-09 Ubisoft expects sales to come in at around €160 million, representing a 26 percent increase on the same period last year and also bringing year-on-year growth for the first half of 2008-09 to 26 percent. Q2 sales are expected to be driven by Brothers in Arms Hell’s Highway for Xbox 360, PS3 and PC, Soul Calibur titles for Wii, PS3 and Xbox 360, and new casual games for Nintendo’s Wii and DS.
Ubisoft also raised its guidance for 2008-09 full-year sales from €1 billion to approximately €1.02 billion as a result of the “favorable market conditions for the video games industry, the Group’s solid first-quarter sales performance and the positive reception given to the games resented at E3”.
Additionally, the company confirmed that the latest title in Tom Clancy's Splinter Cell series, which was previously due for release in the fourth quarter of the current fiscal year, will now bolster the company’s fiscal 2009-10 lineup.