UBISOFT REPORTS 2007-08 THIRD QUARTER SALES
UBISOFT REPORTS 2007-08 THIRD QUARTER SALES=20
? Third Quarter Sales Up 44 Percent to ?450 ($625.81) Million, Outstripp=
ing Forecasts
? In 2007 Ubisoft Moves up to the Position of Third Leading Independent =
Publisher (In Europe and North America, Excluding Asia)
? Two New Franchises Created ? Assassin's Creed(TM) and Imagine(TM)
? 2007-08 Title Release Schedule Updated
? 2007-08 Targets Revised Upwards and Sales Guidance Raised for 2008-09
Paris, January 23, 2008 ? Today Ubisoft, one of the world's largest video=
game publishers, reported its sales for the third fiscal quarter ended D=
ecember 31, 2007.=20
Sales
Sales for the third quarter of 2007-08 came to ?450 ($625.81) million, up=
44.4 percent, or 50.1 percent at constant exchange rates, compared with =
the ?311 ($432.50) million recorded for the same period of 2006-07. Sales=
for the first nine months of fiscal 2007-08 totaled ?711 ($988.78) milli=
on versus ?483 ($671.70) million in the corresponding period of 2006-07, =
representing an increase of 47.2 percent, or 52.1 percent at constant exc=
hange rates.
Third-quarter sales outstripped the guidance that was raised to ?410 ($57=
0.18) million on December 13, 2007. This very good performance was fueled=
primarily by the following elements:=20
? A further exceptional showing from Assassin's Creed. In Europe, this wa=
s the best-selling game in 2007 for the PLAYSTATION=AE3 computer entertai=
nment system and the number 2 best-seller for the Xbox360(TM) system.=20
In the United States, it was the second best-selling game in 2007 for the=
PLAYSTATION=AE3 computer entertainment system and the number 3 best-sell=
er for the Xbox360(TM) system (in units, based on data issued by market r=
esearch firms such as NPD, Chart-Track, Nielsen and GFK).
? Excellent sales levels reported by our casual games including Fashion D=
esigner, Babyz=AE and Animal Doctor for the Imagine series; Horsez=AE, Ha=
msterz(TM) and Catz=AE for the Petz=AE series; and My Word Coach from th=
e My Coach series.
Games for new-generation consoles represented 84 percent of the Group's s=
ales in the first nine months of 2007-08, versus 55 percent for the equiv=
alent period of 2006-07.=20
Ubisoft continued to gain market share in calendar 2007, and was ranked a=
s follows1:
? Number 2 independent publisher in Europe, reporting 58 percent growth =
(versus 25 percent for the European market as a whole), and market share =
of 8.7 percent (6.9 percent in 2006).=20
? Number 3 independent publisher in the United States, where growth came=
in at 49 percent (compared with 29 percent for the U.S. market as a whol=
e), and market share represented 6.1 percent (5.2 percent in 2006).
Yves Guillemot, Chief Executive Officer of Ubisoft, stated "The vast majo=
rity of our games reaped the benefits of particularly strong market momen=
tum over the Christmas period. Two new long term multi-million franchises=
were created, Assassin's Creed and Imagine, generating sell-in sales of =
five and 2.5 million units respectively. They will join our existing port=
folio of 12 franchises. As a result, Ubisoft moved up from fourth to thir=
d place in the overall ranking of independent publishers in 2007 ? a year=
that saw the video game industry enter new dimension with previously unh=
eard of visibility. This revolution stems from the greater accessibility =
of Nintendo's consoles as well as from the superb cinema-like visual expe=
rience provided by Sony and Microsoft consoles. We expect this situation =
to significantly drive up market performance once again in 2008, with ove=
rall market growth representing at least 10 percent. Against this backdro=
p, Ubisoft will continue to leverage its strong brands and design capacit=
ies with a view to outperforming the market."
Outlook
Fourth-quarter 2007-08 sales
This period will see the following main releases:=20
? Tom Clancy's Rainbow Six=AE Vegas 2 for PC, the Xbox360(TM) system and =
the PLAYSTATION=AE3 computer entertainment system;
? Assassin's Creed for PC and the Nintendo DS(TM);
? The game based on the Lost(TM) television series, for PC, the PLAYSTATI=
ON=AE3 computer entertainment system and the Xbox360(TM) system; and
? New casual games for the Nintendo DS(TM) and Nintendo Wii(TM).
Haze(TM), which was originally scheduled for the fourth quarter of 2007-0=
8, will now be released in fiscal 2008-09.
The Group expects sales for the fourth quarter of 2007-08 to total around=
?165 ($229.46) million, representing a 16 percent contraction compared w=
ith the same period of 2006-07.
Targets revised upwards for 2007-08 and 2008-09
In light of the Group's third-quarter performance and initial positive tr=
ends for the fourth quarter of the year, Ubisoft has raised its performan=
ce targets for full-year 2007-08. The 2007-08 sales target is now approxi=
mately ?875 million ($1b 216m) compared with the forecast of ?840 million=
($1b 168m) announced on December 13, 2007, and the Group expects current=
operating income before stock options to represent at least 13 percent o=
f sales, versus the previous estimate of at least 12 percent.=20
At the same time, in order to take into account the postponed release dat=
e for Haze(TM), Ubisoft has raised its 2008-09 sales target to approximat=
ely ?1 billion ($1b 390m) compared with the previously-announced forecast=
of around ?975 million ($1b 355m). The Group is maintaining its target f=
or current operating income before stock options to represent at least 11=
percent of sales.=20
The 2008-09 line-up will include notably the following key titles:
? Seven franchises, including Tom Clancy's Splinter Cell=AE, Brothers in =
Arms=AE, Far Cry=AE, Prince of Persia=AE and Anno(TM);
? Five new brands, including Tom Clancy's EndWar(TM), Haze(TM), the Shaun=
White snowboard game a Tom Clancy(TM) air combat game; and
? New games in the Petz, Imagine and My Coach series as well as a new lin=
e of casual games.=20
Recent Highlights
Market share: Excluding Asia, Ubisoft was the third-leading independent p=
ublisher in the world in 2007. It ranked number 3 in the United States wi=
th 6.1 percent market share (compared with number 5 and 5.2 percent one y=
ear earlier); number 2 in Europe with 8.7 percent market share (compared =
with number 2 and 6.9 percent); number 2 in France with 9.3 percent marke=
t share (compared with number 2 and 7.7 percent); number 2 in the United =
Kingdom with 9.1 percent market share (compared with number 3 and 7.6 per=
cent); and number 2 in Germany with 7.9 percent market share (compared wi=
th number 2 and 6.6 percent).=20
Ubisoft closes the acquisition of the Japanese video game development stu=
dio Digital Kids: Established in 1996 with offices in Nagoya and Osaka, D=
igital Kids currently has a team of 20 developers specialized in games fo=
r the Nintendo DS(TM). The studio has worked regularly for a number of Ja=
panese publishers and has developed several successful titles for Ubisoft=
's Petz line of games, including Hamsterz Life(TM).
Disclaimer
This statement may contain estimated financial data, information on futur=
e projects and transactions and future business results/performance. Such=
forward-looking data are provided for estimation purposes only. They are=
subject to market risks and uncertainties and may vary significantly com=
pared with the actual results that will be published. The estimated finan=
cial data have been presented to the Board of Directors and have not been=
audited by the Statutory Auditors. (Additional information is specified =
in the most recent Ubisoft Registration Document filed on June 27, 2007 w=
ith the French Financial Markets Authority (l'Autorit=E9 des march=E9s fi=
nanciers)).
Financial calendar
Release Date
Fourth-quarter 2007-08 sales April 24, 2008
This date is subject to change and will be confirmed at a later stage.
About Ubisoft
Ubisoft is a leading producer, publisher and distributor of interactive e=
ntertainment products worldwide and has grown considerably through a stro=
ng and diversified line-up of products and partnerships. Ubisoft has offi=
ces in 21 countries and sales in more than 50 countries around the globe.=
It is committed to delivering high-quality, cutting-edge video game titl=
es to consumers. Ubisoft generated sales of ?680 million for the 2006-07 =
fiscal year. To learn more, please visit www.ubisoftgroup.com.
###
=A9 2008 Ubisoft Entertainment. All Rights Reserved. Anno, Imagine, Petz,=
Horsez, Babyz, Hamsterz, Hamsterz Life, Splinter Cell, Assassin's Creed,=
EndWar, Ubisoft, Ubi.com, and the Ubisoft logo are trademarks of Ubisoft=
Entertainment in the U.S. and/or other countries. Rainbow Six, Red Storm=
and Red Storm logo are trademarks of Red Storm Entertainment in the U.S.=
and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Enter=
tainment company. =20
=A9 2007 Ubisoft Entertainment. All Rights Reserved. Far Cry is a tradema=
rk of Ubisoft Entertainment in the US and/or other countries. Based on Cr=
ytek's original Far Cry directed by Cevat Yerli.
=A9 2003-2008 Ubisoft Entertainment. All Rights Reserved. Based on Prince=
of Persia=AE created by Jordan Mechner. Ubisoft Prince of Persia is a tr=
ademark of Jordan Mechner in the US and/or other countries used under lic=
ense by Ubisoft Entertainment.
TM Paramount Pictures. =A9 2007 Paramount Pictures and Shangri-La Enterta=
inment, LLC. All Rights Reserved. Game Software =A9 2007 Ubisoft Entertai=
nment. All Rights Reserved.=20
=A9 2007 Ubisoft Entertainment SA and Free Radical Design Limited. All R=
ights Reserved. Haze is a trademark of Ubisoft Entertainment and Free Ra=
dical Design. Free Radical Design and its associated logo are trademarks=
of Free Radical Design Limited. =20
=A9 2007 Gearbox Software, L.L.C. All rights reserved. Published and dist=
ributed by Ubisoft Entertainment under license from Gearbox Software, L.L=
=2EC. Brothers in Arms is a trademark of Gearbox Software and is used und=
er license. Gearbox Software and the Gearbox logo are registered trademar=
ks of Gearbox Software, LLC.=20
=A9 2007 MTO Inc. All Rights Reserved. Published and distributed by Ubiso=
ft Entertainment under license from MTO.,=20
"PlayStation?, "PLAYSTATION?, "PS? Family logo and "PSP? are registered t=
rademarks of Sony Computer Entertainment Inc. PSP=AE system? Memory Stick=
Duo(TM) may be required (sold separately).
Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks o=
f the Microsoft group of companies.
Nintendo DS and the Wii logo are trademarks of Nintendo. =A9 2006 Nintend=
o.
APPENDICES
Breakdown of sales by geographic region
% sales % sales % sales % sales=20
Q3 2007/08 Q3 2006/07 9 months 2007/08 9 months 2006/07
Europe 53% 47% 53% 47%
North America 41% 46% 41% 46%
Rest of world 6% 6% 7% 7%
TOTAL 100% 100% 100% 100%
Breakdown of sales by platform
Q3 2007/08 Q3 2006/07 9 months 2007/08 9 months 2006/07
Nintendo DS(TM) 28% 9% 25% 8%
Game Boy Advance 1% 4% 2% 6%
Nintendo GameCube(TM) 0% 1% 0% 1%
PC 6% 14% 8% 19%
PlayStation=AE2 4% 15% 6% 17%
PLAYSTATION=AE3 19% - 20% -
PSP(TM) 2% 5% 4% 5%
Wii(TM) 12% 21% 11% 14%
XBOX=AE 0% 2% 0% 1%
XBOX 360(TM) 29% 28% 24% 28%
Other 0% 1% 0% 1%
TOTAL 100% 100% 100% 100%
Breakdown of sales by business line
Q3 2007/08 Q3 2006/07 9 months 2007/08 9 months 2006/07
Development 91% 88% 86% 76%
Publishing 8% 11% 12% 19%
Distribution 1% 2% 3% 5%
TOTAL 100% 100% 100% 100%
Title Release Schedule
Fourth quarter (January ? March 2008)
Anno (TM) 1701 (U.S.) Nintendo DS(TM)
ASSASSIN'S CREED(TM) Nintendo DS(TM), PC
BRAIN CHALLENGE (TM) Nintendo DS(TM)
PETZ=AE : BUNNYZ=AE Nintendo DS(TM)
CHESSMASTER=AE THE ART OF LEARNING PSP(TM)
CSI: CRIME SCENE INVESTIGATION(TM): HARD EVIDENCE Wii(TM)
DARK MESSIAH OF MIGHT AND MAGIC(TM): ELEMENTS Xbox 360(TM)
DRAGONQUEST=AE MONSTER: JOKER (some European countries) Nintendo DS(TM)
IMAGINE(TM) : FIGURE SKATER Nintendo DS(TM)
FINAL FANTASY REVENANT WINGS (some European countries) Nintendo DS(TM)
FINAL FANTASY CRYTAL CHRONICLES=AE : RING OF FATES
(some European countries) Nintendo DS(TM)
LOST(TM): VIA DOMUS Xbox 360(TM), PLAYSTATION=AE3, PC=20
MATHS PLAY Nintendo DS(TM)
MIAMI NIGHTS: SINGLES IN THE CITY(TM) Nintendo DS(TM)
NITROBIKE(TM) Wii(TM)
NO MORE HEROES(TM) (U.S.) Wii(TM)
PUPPY PALACE(TM) Nintendo DS(TM)
TOM CLANCY'S RAINBOW SIX=AE VEGAS 2
Xbox 360(TM),PLAYSTATION=AE3, PC=20
REAL SOCCER(TM) 2008 (U.S.) Nintendo DS(TM)
SETTLERS 6 ADD ON (Europe) PC
SILENT HUNTER=AE: WOLVES OF THE PACIFIC U-BOAT MISSIONS ADD ON PC
PETZ=AE: WILD ANIMALS: TIGERZ(TM) Nintendo DS(TM)
THE DOG ISLAND(TM) (Europe) Wii(TM), PlayStation=AE2
TOTALLY SPIES TOTALLY PARTY (Europe) Wii(TM)
VICTORIOUS BOXERS CHALLENGE (Europe) Wii(TM)
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