Ubisoft Financial Report 2007

Key insights

6 takeaways

01
Ubisoft achieved a 24% increase in annual sales to €680.3 million and a significant rise in net earnings to €40.6 million for the fiscal year ending March 31, 2007.See it on page 9
02
The company improved its financial position from a net debt of €65 million to a positive net cash position of approximately €55 million.See it on page 12
03
In-house production investment grew by 24% and the workforce expanded by 15% to 3,934 employees to support the transition to next-generation consoles.See it on page 16
04
Strategic intellectual property expansion included the acquisition of the Driver franchise and the Anno brand.See it on page 69
05
The company executed a 2-for-1 stock split in December 2006 and maintained a policy of zero dividend distribution to prioritize internal reinvestment.See it on page 114
06
Operational risk management was bolstered by standardized ERP systems across international subsidiaries and rigorous foreign exchange hedging.See it on page 137

Summary

The Ubisoft 2007 financial report details a period of robust growth and strategic transformation for the fiscal year ending March 31, 2007. The company’s primary objective during this timeframe was to successfully navigate the transition to next-generation console platforms while expanding its global production capacity. By prioritizing internal brand development and aggressive talent acquisition, Ubisoft achieved a 24% increase in sales to €680.3 million and a significant rise in net earnings to €40.6 million, compared to €11.9 million in the previous year.

Operational success was underpinned by a 15% expansion of the workforce to 3,934 employees and a 24% increase in in-house production investment. Strategic acquisitions, most notably the Driver franchise and the subsequent purchase of the Anno brand, further solidified the company’s intellectual property portfolio. Financially, the organization transitioned from a net debt position of €65 million to a positive net cash position of approximately €55 million. This stability was supported by the early redemption of convertible bonds and a centralized approach to financial risk management, including rigorous foreign exchange hedging and the use of standardized ERP systems across international subsidiaries.

Corporate governance remained characterized by the leadership of the Guillemot family and a commitment to centralized internal controls. The company executed a 2-for-1 stock split in December 2006 and maintained a policy of non-dividend distribution to prioritize reinvestment. While the report identifies ongoing challenges such as piracy, talent retention, and the risks inherent in licensing agreements, the overall outlook reflects a stable, well-capitalized entity. By the close of the fiscal year, Ubisoft had established a solid foundation for future growth, supported by confirmed credit lines and a clear mandate from shareholders to manage capital structures and equity programs to incentivize long-term performance.