Ubisoft Beats Revenue Projection for June 2011 Quarter

by Jacob Mazel, posted on 20 July 2011 / 4,252 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.

Finally, based on the company's data the June 2011 quarter broke down as follows for Ubisoft:

- 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.

Contact VGChartz at jmazel@vgchartz.com


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7 Comments

WiseOwl (on 27 July 2011)

Ubisoft is making lots of money off the Just Dance games.


Mr. Sega (on 20 July 2011)

In conference call was said Brotherhood is now over 7.5m.


TheSource (on 20 July 2011)

No game shipments . Ubisoft is on a French system of accounting, they only report profit bi-annually instead of quarterly.


Nintendogamer (on 20 July 2011)

I see just dance 2 topping 10M soon.


Kai Master (on 20 July 2011)

no game shipments ?


non-gravity (on 20 July 2011)

no profit figure?


WiseOwl (on 20 July 2011)

That have found that nich with Just Dance and Ubisoft are running with it.