Ubisoft First-Quarter 2011-12 Sales

Key insights

6 takeaways

01
Ubisoft reported Q1 2011-12 sales of €103 million, a 36.3% year-over-year decline that nonetheless outperformed the company's internal guidance of €90 million.See it on page 1
02
Back-catalog sales surged by 84%, led by titles like Assassin’s Creed Brotherhood, while online revenue grew by 45%, helping to mitigate the impact of a lighter new release schedule.See it on page 1
03
The company reaffirmed its full-year sales target of €1,040 million to €1,080 million and projects Q2 sales of approximately €99 million.See it on page 1
04
North America remains the primary market at 58% of total sales, followed by Europe at 32%, with the Xbox 360 serving as the leading platform at 36% of sales.See it on page 4
05
Ubisoft is aggressively pivoting toward digital growth, evidenced by the acquisition of Owlient to bolster its free-to-play strategy and the development of online titles like Ghost Recon Online and TrackMania 2.See it on page 1
06
As of the first half of the 2011 calendar year, Ubisoft maintained its position as the fourth-largest independent publisher in the United States and the third-largest in Europe.See it on page 2

Summary

Ubisoft reported first-quarter sales of €103 million for the 2011-12 fiscal year, representing a 36.3% decline compared to the same period in the previous year. Despite this decrease, the results exceeded the company’s internal guidance of €90 million. The performance was bolstered by an 84% surge in back-catalog sales, driven by titles such as Assassin’s Creed Brotherhood, and a 45% increase in online revenue. These gains helped offset the impact of a lighter release schedule compared to the prior year’s first quarter.

Geographically, North America remained the company's largest market, accounting for 58% of sales, while Europe contributed 32%. In terms of platform distribution, the Xbox 360 led with 36% of sales, followed by the Wii at 27% and the PlayStation 3 at 19%. The company maintained a strong market position during the first half of the 2011 calendar year, ranking as the fourth-largest independent publisher in the United States and the third-largest in Europe.

Looking ahead, Ubisoft confirmed its full-year targets, projecting total sales between €1,040 million and €1,080 million. The company is actively pivoting toward digital growth, highlighted by the acquisition of Owlient to accelerate its free-to-play strategy and the expansion of its online portfolio, including titles like Ghost Recon Online and TrackMania 2. Management expects second-quarter sales to reach approximately €99 million, consistent with the performance seen in the second quarter of the 2010-11 fiscal year, as it continues to leverage its diversified product portfolio across high-definition, casual, and online segments.