Ubisoft Third-Quarter 2010-11 Sales Results

Key insights

7 takeaways

01
Ubisoft achieved €600 million in third-quarter sales for fiscal 2010-11, a 21.2% year-over-year increase that exceeded initial guidance of €520 million.See it on page 1
02
Total sales for the first nine months of the fiscal year reached €861 million, representing a 30.3% increase compared to the same period in the prior year.See it on page 1
03
Growth was driven by the strong performance of key franchises, specifically 6.5 million units sold of Assassin's Creed Brotherhood and 10.5 million units sold across the Just Dance and Michael Jackson: The Experience portfolio.See it on page 1
04
Ubisoft captured significant market share on the Kinect platform, securing 18% of the U.S. market and 21% of the European market.See it on page 1
05
By the end of calendar 2010, the company expanded its total market share to 9.2% in Europe and 7.3% in the United States.See it on page 1
06
The company projects total annual sales of approximately €1,020 million for the 2010-11 fiscal year, a 17% year-over-year increase, and expects a return to profitability and positive cash flow.See it on page 2
07
Future strategic priorities include a focus on high-definition franchises, expansion into digital and casual gaming, and development for new hardware platforms like the 3DS and NGP.See it on page 1

Summary

Ubisoft’s third-quarter fiscal 2010-11 sales report highlights a period of significant growth, with quarterly sales reaching €600 million, a 21.2% increase over the same period in the previous fiscal year. This performance exceeded initial guidance of €520 million, driven largely by the success of key franchises and strategic hardware adoption. For the first nine months of the fiscal year, total sales reached €861 million, marking a 30.3% increase compared to the prior-year period.

The company’s growth was fueled by strong sell-in figures for Assassin's Creed Brotherhood, which moved over 6.5 million units, and a robust performance from its dance-oriented portfolio, including Just Dance and Michael Jackson: The Experience, which collectively sold over 10.5 million units. Furthermore, Ubisoft successfully capitalized on the Kinect platform, capturing 18% of the U.S. market and 21% of the European market for that hardware. These results contributed to an expanded market share in both regions, with the company reaching 9.2% in Europe and 7.3% in the United States by the end of calendar 2010.

Looking ahead, Ubisoft maintains a positive outlook for the remainder of the 2010-11 fiscal year, projecting total annual sales of approximately €1,020 million, representing a 17% year-over-year increase. The company expects to achieve a return to profitability and positive cash flow for the full year. Strategic priorities moving forward include a continued focus on high-definition franchises, expansion into digital and casual gaming segments, and development for emerging hardware platforms such as the 3DS and NGP. Management anticipates further growth in both sales and operating income for the 2011-12 fiscal year.