Ubisoft Financial Report 2009/2010

Key insights

6 takeaways

01
Ubisoft reported an 18% decline in annual sales to €871 million for the 2009/2010 fiscal year, resulting in a net loss of €43.7 million.See it on page 10
02
Financial losses were primarily driven by a contraction in the casual gaming market and significant inventory write-downs, particularly within the Nintendo DS segment.See it on page 12
03
Despite fiscal losses, the company maintained a net financial surplus of €41.3 million and increased its internal production spending to €259 million to prioritize long-term innovation.See it on page 38
04
Ubisoft expanded its global workforce by 11% during the fiscal year to support the development of core franchises like Assassin’s Creed and Just Dance.See it on page 15
05
The company’s ownership structure included a 14.81% stake held by Electronic Arts, while the Guillemot family maintained 11.26% of capital and 20.06% of voting rights.See it on page 57
06
No dividends were distributed to shareholders for the 2009/2010 period as the company focused on structural efficiency and transitioning toward online gaming segments.See it on page 55

Summary

The 2009/2010 fiscal year represented a period of significant financial recalibration for Ubisoft as the company navigated a volatile global gaming market. During this period, the organization experienced an 18% decline in sales to €871 million, resulting in a net loss of €43.7 million. This downturn was primarily attributed to a contraction in the casual gaming sector and substantial inventory write-downs, particularly within the Nintendo DS segment. Despite these fiscal pressures, the company maintained a net financial surplus of €41.3 million and continued to prioritize long-term growth through an 11% expansion of its global workforce and a sustained capital expenditure policy, with internal production costs reaching €259 million to foster innovation.

Strategic operations during this period centered on the development of core franchises such as Assassin’s Creed and Just Dance, alongside a transition toward online gaming segments. To mitigate risks associated with a hit-driven business model, the company employed centralized treasury policies, including foreign-exchange hedging and robust IT security frameworks. Corporate governance remained stable under the leadership of Chairman and CEO Yves Guillemot, with the company adhering to the AFEP-MEDEF code. The ownership structure featured the Guillemot family holding 11.26% of capital and 20.06% of voting rights, while Electronic Arts maintained a notable 14.81% stake.

Beyond financial and operational metrics, the company integrated comprehensive corporate social responsibility initiatives into its business model. Efforts included the implementation of "Green IT" policies, the recycling of significant quantities of hardware and unmarketable products, and the digitization of game manuals to reduce environmental impact. While the company did not distribute dividends during this fiscal year, it focused on internal creative development and structural efficiency to position itself for a return to profitability in the subsequent 2010/2011 period.