UBISOFT REPORTS THIRD-QUARTER 2012-13 SALES

UBISOFT® REPORTS THIRD-QUARTER 2012-13 SALES 

  • Third-quarter sales above targets, coming in at €802 million 
  • Outstanding performance by the core gamer segment 
  • Strong momentum for digital distribution 
  • Revision of targets for full year 2012-13 and preliminary comments for 2013-14 

Paris, February 7, 2013 – Today, Ubisoft released its sales figures for the fiscal quarter ended December 31, 2012. 

Sales

Sales for the third quarter of 2012-13 came to €802 million, up 23.0% (or 19.2% at constant exchange rates) compared with the €652 million recorded for the same period of 2011-12.

For the first nine months of fiscal 2012-13, sales totaled €1,081 million versus €900 million in the corresponding prior-year period, representing an increase of 20.1%, or 12.9% at constant exchange rates. 

The third-quarter sales figure was above the upper end of the target range of between €740 million and €800 million issued when Ubisoft released its first-half 2012-13 results. The quarter saw the following:

  • An outstanding performance by the core gamer segment, driven by very high-quality games. Assassin’s Creed® 3 was a record-breaking success with more than 12 million sell-in and digitally distributed units, representing an almost 70% increase over Assassin’s Creed® Revelations. Far Cry® 3 was the highest-rated shooter game in 2012 for Xbox360 (with a Metacritic score of 90%), and delivered a much higher-thanexpected performance, with already over 4.5 million sell-in and digitally distributed units.
  • Very sharp growth for the Online segment, with sales jumping 143% to €55.2 million, led by digital distribution as well as DLC revenues which increased four-fold during the first nine months. Apple named Rayman® Jungle Run as the iPhone Game of the Year for 2012 and Trials Evolution is regularly cited as one of the overall best games of the year.
  • The anticipated decrease of the Casual segment, which was largely offset by the abovedescribed very strong growth for the core gamer and Online segments. Just Dance® 4 delivered a solid performance in comparison with the Wii and Kinect markets. With nearly 8 million sell-in units (representing a contained 16% decrease in value terms compared with Just Dance® 3) the title was regularly ranked among the best-selling games worldwide.

Back-catalog sales continued to improve, contracting just 1% to €162 million for the first nine months of 2012-13. This was achieved thanks to sharp growth in online and digital back-catalog sales which offset the decrease for the retail back catalog.  

Yves Guillemot, Chief Executive Officer, stated “Fiscal 2012-13 is a real turning point for Ubisoft. Our performance fully validates our long-term choices and the large-scale investments we have been undertaking for several years now, with a sharp ramp-up in games for core gamers and notably our strong comeback into the major segment of shooter games. Assassin’s Creed 3 has reported record-breaking sales of over 12 million units and year after year is marking its position as one of the industry’s major franchises. We have also reestablished Far Cry as one of the major pillars of our offering for core gamers, with Far Cry 3 the highest-rated shooter of 2012 for Xbox 360 and winning the Gamespot People’s Choice Game of the Year award. We now have greater visibility in terms of future revenue and profitability for this franchise. Thanks to these successes and the ongoing solid performance for Just Dance, Ubisoft’s market share has topped 11% for the first time in both the United States and Europe. Lastly, we are continuing to capitalize on the strong growth trajectory of the Online segment, which in the third quarter of 2012-13 was propelled by a sharp increase in DLC revenues and in digital distribution – a channel that is having an increasingly material impact on our performance.”

Yves Guillemot concluded by saying “We are now reaping the initial benefits of the two deep-seated transformation processes we have undertaken, namely the Lead and Associate structure for our creative studios, and internal development of our online expertise with versatile teams. In 2013-14, thanks to an even stronger offer for core gamers and continued robust momentum for free-to-play games and digital distribution, Ubisoft should continue to capitalize on these underlying trends and win new market share in both the retail and online channels. Consequently, in the next fiscal year, we expect to see further growth in both sales and current operating income.”

Outlook

Full-year 2012-13

The Company is further revising its full-year 2012-13 targets for sales and current operating income[1], which were already raised when Ubisoft released its results for the first half of 2012-13. Sales are now expected to come in at between €1,240 million and €1,260 million, compared with the previous target of between €1,200 million and €1,260 million, and current operating income1 is now expected to amount to between €90 million and €100 million, versus the previously-announced range of between €70 million and €100 million.

Sales for the fourth quarter of 2012-13

The fourth quarter will see the following releases: 

  • Trials Evolution on PC through digital distribution;
  • the Open Beta of AnnoTM Online, a free-to-play game on PC; and §   Might & Magic Clash of Heroes® on IOS 

Ubisoft expects fourth-quarter 2012-13 sales to amount to between €159 million and €179 million. 

Significant events

Market share: In calendar 2012, Ubisoft was the number 3 independent publisher in the United States with 10.7% market share (compared with number 3 and 8.4% one year earlier) and was number 3 in Europe with 11.2% market share (compared with number 3 and 8.7%).  

Bond placement: Ubisoft placed €20 million worth of bonds with a six-year term and a 3.99% coupon. 

THQ Montreal and South Park: The Stick of Truth: Ubisoft has acquired THQ Montreal as well as the publishing rights for the upcoming South Park: The Stick of Truth video game, which is being developed externally by Obsidian.

Contact

      Investor relations                                                               

Jean-Benoît Roquette

Head of Investor Relations + 33 1 48 18 52 39

jean-benoit.roquette@ubisoft.com

Disclaimer

This statement may contain estimated financial data, information on future 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 compared with the actual results that will be published. The estimated financial 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 July 02, 2012 with the French Financial Markets Authority (l’Autorité des Marchés Financiers)).

About Ubisoft:

Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide and has grown considerably through a strong and diversified line-up of products and partnerships. Ubisoft has offices in 26 countries and has sales in more than 55 countries around the globe. It is committed to delivering high-quality, cutting-edge video game titles to consumers. For the 2011-12 fiscal year Ubisoft generated sales of €1,061 million. To learn more, please visit: www.ubisoftgroup.com.

© 2012 Ubisoft Entertainment. All rights Reserved. Just Dance, Imagine, The Towers Logo, Rayman, Assassin’s Creed, Far Cry,

Might & Magic Clash of Heroes, Nutty Fluffies Logo, Anno, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the

US and/or other countries. Babies“R”Us, Toys“R”Us, and the associated brand trademarks are marks of and used under license from

Geoffrey, LLC, and Toys “R” Us (Canada) Ltd., subsidiaries of Toys“R” Us, Inc. © 2002- 2013  CBS Broadcasting Inc. and Daltrey Funding LLC. All Rights Reserved.  CSI: MIAMI  in USA is a trademark of CBS Broadcasting Inc. and outside USA is a trademark of Daltrey Funding LLC. Software © 2012 Ubisoft Entertainment. All Rights Reserved.


[1] Before stock-based compensation

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