Today Ubisoft announced its results for the first quarter of fiscal year 2006/2007. Ubisoft sales grew 62 percent in comparison with the same period last year and exceeded sales forecasts by 10 million Euros ($12.6 Million) with total sales for the quarter at 70 million Euros ($88M).
In Q1, Ghost Recon Advanced Warfighter continued to dominate the Xbox 360 market, holding steady as the best-selling game on the Microsoft platform since the beginning of the calendar year. Heroes of Might & Magic V was a big success for Ubisoft, with the title grabbing the number one spot for PC titles in the UK, France and Germany at launch.
The strong growth seen during the quarter was mainly related to strong sales in the United States, which saw a 34 percent increase in sell-through in an overall market which was up by 7 percent (according to NPD, all platforms combined). North American sales represented 49 percent of total revenue, compared to 31 percent in the first quarter of 2005-2006. In the first six months of the calendar year, Ubisoft’s US market share increased to 7 percent, compared to 5 percent in the first half-year of 2005. (figures are in Euros and U.S. Dollars using the conversion rate of 1.25636 Dollars to 1 Euro).
Looking ahead to the second quarter of fiscal 2006-2007, Ubisoft expects sales of 78 million Euros ($98 million USD). The company is basing these numbers on the launch of titles such as Pirates of the Carribean 2, Open Season and Enchanted Arms. The third quarter will see a strong activity, notably with the launch of Tom Clancy’s Splinter Cell Double Agent (whose launch date is now scheduled for the end of October 2006), Rayman Raving Rabbids, Red Steel and Tom Clancy’s Rainbow Six Vegas. Ubisoft confirms full year 2006-2007 guidance provided at the time of its full year 2005-2006 earnings release (5 to 10 percent sales growth and current operating income before stock based compensation to represent between 3 and 4 percent of total revenue).
