San Francisco, CA April 29, 2004 Ubisoft, one of the world's largest video game companies today announced annual 2003/2004 sales:
New level reached
- Ubisoft has once again outperformed the market. The company has pushed annual sales up to $433 million (€ 508.4 million), which reflects growth of 22.5% at a constant rate and 12% at current exchange rates. This result confirms Ubisoft's capacity to generate internal growth of above 20% based on the quality of its studios. "Development" accounted for 86% of sales, up from 77% in 2002/2003, which reflects this solid in-house strength. Moreover, North America and Europe represented 47% and 49%, respectively, of company sales.
- The focus on hits has paid off: as anticipated, 8 major titles sold more than 10 million units, including sales of 1.7 million for Tom Clancy's Splinter Cell: Pandora Tomorrow, 2.4 million for Prince of Persia The Sands of Time, 2.2 million for Tom Clancy's Rainbow Six3 and 1.1 million for Tom Clancy's Ghost Recon Island Thunder/Jungle Storm. In addition, the first opus Tom Clancy's Splinter Cell has continued to sell at a steady pace, with a total of 6 million units sold since launch.
- The two major launches in the fourth quarter (January-March), Tom Clancy's Splinter Cell: Pandora Tomorrow on XBox and Far Cry on PC, went straight to the top of the sales charts* upon release. For the fourth quarter, Ubisoft ranked 5th among independent publishers in the United States* and 4th in the United Kingdom*.
- New, targeted acquisitions with significant potential: in order to strengthen its internal production, Ubisoft acquired Wolfpack and Tiwak. The company is thus continuing its policy of acquiring studios to integrate new expertise. Ubisoft also increased its holdings in Gameloft to position itself on the rapidly growing market for cellular phone games.
Upward revision of expected cash flow for 2003/2004
- Free cash flow (excluding acquisitions) is now expected to exceed € 50 million, up from the initial forecast of € 30 million. This result is especially positive and reflects a net improvement in both cash flow from operating activities and working capital requirements.
- Taking into account the acquisitions made during the year (the increased holding in Gameloft in October 2003 and the acquisitions of Tiwak and Wolfpack), net debt is expected to total less than € 125 million as of 31 March 2004, compared with € 169.8 million on 31 March 2003.
A bright outlook for 2004/2005
- The prospects for the market are encouraging: the lower console prices anticipated in 2003 were finally put into effect by Microsoft at the beginning of April 2004. This should breathe new life into the video game industry this year.
- A portfolio of high-quality products: among the major titles for 2004/2005 to be presented at E3 in mid-May will be several new brands with great potential, including Far Cry Instincts for consoles and Brothers in Arms. These will be joined by numerous sequels to already established brands, such as Tom Clancy's Ghost Recon 2, Prince of Persia 2 (working title), Tom Clancy's Rainbow Six Black Arrow and others, all of which will provide great visibility for the Group. More titles with significant potential will also be announced during E3.
- The first quarter of 2004/2005 is already off to a good start: in addition to reorders for two hits, Tom Clancy's Splinter Cell: Pandora Tomorrow on XBox and Far Cry, will be boosted by the launches of Tom Clancy's Splinter Cell: Pandora Tomorrow on PlayStationÒ2 and GameCube and of Tom Clancy's Rainbow Six 3 on GameCube.
"This year we have succeeded in creating two new brands: Far Cry and Prince of Persia, in addition to the success of Rainbow Six3 on consoles. For Fiscal Year 2004/2005, we are going to pursue our strategy of creating brands while paying close attention to player expectations. We are also going to strengthen our internal studios by hiring 400 talented people in our Chinese and Canadian studios, thus ensuring the steady growth of our business," declared Yves Guillemot, President and CEO of Ubisoft.
Consolidated sales (in million euros)
FY 2003/2004, FY 2002/2003, Change
First Quarter: 66.5, 32.0, +107%
Second Quarter: 62.3, 51.5, +21%
Third Quarter: 227.7, 190.5, +20%
Fourth Quarter: 151.9, 179.0, -15%
Full year: 508.4, 453, +12%
Note: the financial year runs from April 1 to March 31.
* Source: NPD, Chart Track, Gfk
The 2003/2004 annual results will be published and discussed at the meeting of French financial analysts (SFAF) that will be held on June 17th. The company will also use this occasion to set out its goals for the 2004/2005 financial year.
*exchange rate USD=1.17521 €
© 2004 Red Storm Entertainment. All Rights Reserved. Ghost Recon, the Soldier Icon, Ubisoft, and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Red Storm and the Red Storm logo are trademarks of Red Storm Entertainment in the U.S. and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company.
© 2004 Ubisoft Entertainment. All Rights Reserved. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Gearbox Software and the Gearbox logo are registered trademarks of Gearbox Software, L.L.C.
© 2004 Ubisoft Entertainment. All Rights Reserved. Far Cry, Far Cry Instincts, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries.
©2004 Red Storm Entertainment. All Rights Reserved. Ubisoft, the Ubisoft logo & Black Arrow are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Rainbow Six, Red Storm, and Red Storm Entertainment are trademarks of Red Storm Entertainment in the U.S. and/or other countries. Red Storm Entertainment, Inc. is a Ubisoft Entertainment company.
© 2004 Ubisoft Entertainment. All Rights Reserved. Splinter Cell, Sam Fisher, Splinter Cell: Pandora Tomorrow, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries.
© 2004 Ubi Soft Entertainment. Based on Prince of Persia created by Jordan Mechner. All Rights Reserved. Ubisoft and the Ubisoft logo are trademarks of Ubi Soft Entertainment in the U.S. and/or other countries. Prince of Persia and Prince of Persia The Sands of Time are trademarks of Jordan Mechner used under license by Ubi Soft Entertainment.
© 2004 Red Storm Entertainment. All Rights Reserved. Rainbow Six Red Storm and Red Storm Entertainment are trademarks of Red Storm Entertainment in the US and/or other countries. Red Storm Entertainment, Inc. is a Ubi Soft Entertainment company.
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Ubisoft is an international producer, publisher and distributor of interactive entertainment products. A leading company in the multimedia industry, Ubisoft's strong and diversified lineup has grown considerably, as has Ubisoft itself. As well as steadfastly continuing to partner with several high-profile companies, Ubisoft has also confirmed its presence on the global market by developing its own exceptional properties. Founded in 1986 in France, Ubisoft is now present on every continent, both through offices in 21 different countries including the United States, Morocco, Germany and China and through sales of products in over 50 countries. The group is dedicated to delivering high-quality, cutting-edge video game titles to consumers around the world. Ubisoft generated a turnover of 453 million euros for the 2002/2003 fiscal year, up 23% over the previous fiscal year. To learn more, visit www.ubi.com