Ubisoft Sees Significant First Quarter Revenue Jump
International game publisher Ubisoft has announced its financial results for the first quarter ended June 30, 2006, during which the company reported a 62 percent gain in revenue over the same period during the previous year. The company noted that this increase to €70 million ($88 million) beat expectations of €60 million ($75 million) previously communicated, though the company's profit for the quarter was not disclosed.
Ubisoft indicated that 85 percent of its sales during the first quarter were attributed to titles released for the the PC and Xbox 360, including Tom Clancy’s Ghost Recon Advanced WarFighter, with more than 570,000 units sold for both platforms, and Heroes of Might & Magic V for the PC, which sold through more than 350,000 units.
Sales within the United States market were particularly strong for the company,which saw a 34 percent increase in sell-through. Ubisoft's North American sales represented 49 percent of total revenue, compared to 31 percent during the same quarter of 2005-2006. In addition, Ubisoft’s US market share climbed to 7 percent in the first six months of the calendar year, compared to 5 percent in the first half-year of 2005.
"Ubisoft had a very good start of the year thanks to the success of Heroes of Might & Magic V on the PC and Tom Clancy's Ghost Recon Advanced Warfighter, the highest selling game on the Xbox 360 in 2006,” commented Yves Guillemot, CEO of Ubisoft. “We are also pleased to note the spectacular launch of the Nintendo DS Lite and the solid performance of the Xbox 360 in the American market, a trend which bodes well for the coming upturn of the video games market.”
Looking forward to the second quarter, the company expects to see revenue of approximately €78 million ($98 million), driven by upcoming releases such as Pirates of the Carribean 2, Open Season and Enchanted Arms. Likewise, Ubisoft's third quarter looks to be prosperous as well, with the release of Tom Clancy’s Splinter Cell Double Agent, Rayman Raving Rabbids, Red Steel, and Tom Clancy’s Rainbow Six Vegas for next-generation platforms.