Ubisoft Beats Revenue Projection for June 2011 Quarter - News/ 4,500 Views
Financial results for Ubisoft's June 2011 quarter have arrived. Ubisoft revenues came to €103m ($146.3m) ahead of the 90m Euro in revenue the company had projected for the quarter. Ubisoft continues to expect revenue for the March 2012 year to reach €1.04b - 1.08b as it had forecast previously. June quarter sales were still down about 36% from the levels recorded in the previous June quarter even with Ubisoft beating expectations by 15%.
For the June 2011 quarter, Ubisoft attributes its success to the following factors:
- A solid performance from back-catalog titles, with sales up 84.0% to €68 million, thanks in particular to Assassin’s Creed® Brotherhood and the dance titles.
- The launches of Child of EdenTM and Michael Jackson The Experience on Kinect, compared with the releases of Splinter Cell Conviction® and Prince of Persia The Forgotten Sands® in the first quarter of 2010-11.
- A 45.0% increase in online sales, to €12.5 million. XBLA titles OutlandTM and Might & Magic Clash of Heroes® performed well, with quality review ratings close to 85%.
Ubisoft had also previously announced that the Just Dance series topped 14m units on Wii through June, as Just Dance 2 became the top third party game on Wii with lifetime sales of about 8m units.
Ubisoft expects revenues for the September 2011 quarter to reach €99m ($140m), roughly flat from the September 2010 quarter, on Driver San Francisco for Xbox 360, Playstation 3, Wii and PC, Call of Juarez: The Cartel for Xbox 360, Playstation 3 and PC, Trackmania 2 Canyon, From Dust for XBLA and PSN, Settlers Online in France and the US, and the closed beta of Tom Clancy’s Ghost Recon® Online in France, Germany, and the US.
- Ubisoft had 7.1% software marketshare in the USA from January - June 2011, fourth among independent publishers, and 7.1% marketshare in Europe over the same time frame, third among indepdent publishers. The USA figure is up from 4th place and 6% in the same time frame of 2010, while the European figure is down from 8.8% and 4th place in the same time frame of 2010.
- As a result, only 32% of Ubisoft revenue came from Europe in the June 2011 quarter, down from 39% in the June 2010 quarter. North American revenue grew to 58% from 52% while revenue contributions from the rest of the world grew to 11% from 9%.
- Ubisoft's revenue remained heavily console oriented. X360 was the biggest chunk of revenue for the quarter, at 36% of revenue or about $52.7m. Wii followed at 27% and $39.5m. After that PS3 software contributed 19% and $27.8m in revenue to Ubisoft. The remaining 18% of revenue was mostly attributable to PC (11% / $16.1m), followed by DS (4% / $5.8m) and PSP (2% / $2.9m), with 3DS and other (each 1% / $1.5m) contributing the least for the quarter.
- In the June 2010 quarter, Ubisoft revenue reached $227.2m (at current exchange rates) rather than $146.3m. During that period, X360 revenue was 45% of revenue - $102.2m, with Wii second at 20% of revenue, or $45.4m. PS3 had followed at 17%, or $38.6m. The remaining 18% of revenue was split between PC (7% / $15.9m), DS (6% / $13.6m), and PSP (5% / $11.4m).
- Taking both sets of data into account we can see that X360 revenue dropped $49.5m, a fall of nearly 50%, compared to the June 2010 quarter ($52.7m in Q2 2011, $102.2m in Q2 2010), responsible for about 60% of the $81m drop in Ubisoft revenue year over year. By comparison, Ubisoft's Wii revenue dropped by about $5m (-13%), while PS3 revenue dropped by about $11m (-28%). PSP also dropped an impressive 75% year over year, even though its revenue decline was only $8.5m. DS dropped off quite a bit as well - falling almost $8m, a 58% drop from the previous June quarter. PC revenue was flattish however.
Looking at the results, it isn't surprising Ubisoft is supportive of new consoles - Ubisoft earned $65m less in revenue on the three consoles than it did a year ago, with the HD market down $60m, and accounting for nearly 3/4 of the fall in Ubisoft's revenue year over year.
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