Ubisoft reports revenues for the first-quarter 2006-2007
* Revenue : 70M€, a 62% increase compared to the first-quarter 2005-2006.
* Continued success of Tom Clancy’s Ghost Recon Advanced WarfighterTM and successful launch of Heroes of Might & Magic® V.
* Guidance for fiscal year 2006-2007 are confirmed.
Paris, July 28, 2006 – Ubisoft, one of the world’s largest video game publishers, today announced sales for the first quarter ended June 30, 2006.
Revenue for the first quarter of fiscal year 2006-2007 was 70 M€, an increase of 62% (64% at constant exchange rates) compared to 43 M€ in the first quarter of 2005-2006. First quarter sales outperformed the guidance of 60 M€ communicated at the time of Ubisoft's fourth quarter 2005-2006 revenue release.
85% of first quarter sales were generated on high margin platforms (PC and new generation consoles).
Best selling products included :
* Tom Clancy’s Ghost Recon Advanced WarFighter® with over 570 000 units sold (Xbox360 and PC),
* Heroes of Might & Magic® V (PC), with more than 350 000 units sold. Upon launch, Heroes of Might and Magic® V ranked N°1 in PC sales in the UK, France and Germany.
The strong growth seen during the quarter was mainly related to strong sales in the United States, which saw a 34% increase in sell-through in an overall market which was up by 7%. North American sales represented 49% of total revenue, compared to 31% in the first quarter of 2005-2006. In the first six months of the calendar year, Ubisoft’s US market share increased to 7%, compared to 5% in the first half-year of 2005.
Yves Guillemot, CEO of Ubisoft said "Ubisoft had a very good start of the year thanks to the success of Heroes of Might & Magic® V on the PC and Tom Clancy's Ghost Recon Advanced WarfighterTM, the highest selling game on the Xbox360TM in 2006 . We are also pleased to note the spectacular launch of the Nintendo DS LiteTM and the solid performance of the Xbox 360TM in the American market, a trend which bodes well for the coming upturn of the video games market.”
For the second quarter of fiscal 2006-2007, with the launch of titles such as Pirates of the Carribean 2, Open Season™ and Enchanted Arms™, the group anticipates sales of approximately 78 M€, leading to a mostly stable fiscal first half year in comparison with last year. The third quarter will see a strong activity, notably with the launch of Tom Clancy’s Splinter Cell Double Agent™ (whose launch date is now scheduled for the end of October 2006), Rayman Raving Rabbids™, Red Steel™, Tom Clancy’s Rainbow Six® Vegas, (…). Ubisoft confirms full year 2006-2007 guidance provided at the time of its full year 2005-2006 earnings release (5 to 10% sales growth and current operating income before stock based compensation to represent between 3 and 4% of total revenue).
Yves Guillemot continued : "Ubisoft continues its investments in order to be a dominant player on next-generation consoles. On July 13th we announced the upcoming acquisition of Driver® and its technology, as well as the integration of its development team. Driver® is a mythic brand which has already sold more than 14 million units around the world. This striking acquisition allows us to enter the driving game segment, one of the most important segments in the video game industry. We’ve already proved our ability to relaunch brands and make them into franchises that create strong value. Driver will stand with Tom Clancy's Splinter Cell®, Prince of Persia®, Rayman®, Brothers in ArmsTM, Tom Clancy's Ghost Recon® (…), as one of the major Ubisoft franchises.”
<<Please find attached the full English and French press release>>
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