French publisher Ubisoft today announced its first half fiscal results for the period ended September 30. Sales dropped 51.7% to €166 million ($246.3 million), while an operating loss of €80.0 million is expected for the period (compared with an operating income of €33.0 million for the first six months of fiscal 2008-09).
Ubisoft said that Call of Juarez: Bound In Blood was a primary driver of sales for the period; the title has now sold-in (shipped) close to 900,000 units. Other contributors included Teenage Mutant Ninja Turtles Smash Up, The Price is Right 2, Battle of Giants: Dragons and (in some territories) Cloudy with a Chance of Meatballs and Academy of Champions.
Although the first half was not very good, Ubisoft is anticipating "a significant increase in sales in the second half of the fiscal year (around 22%) and a profit margin of minimum 17%, thanks to a product mix weighted with high-contribution titles."
"As expected, in the first half of fiscal 2009-10 the market was very difficult both for Nintendo DS games and for our back-catalogue titles, with few new releases. The second half of the year should be significantly more favorable with a return to strong growth and profitability. Although the environment is still uncertain and the full effect of the sharp drop in console prices has yet to be felt, Ubisoft has the advantage of a diversified and very high-quality line-up for the crucial Holiday period, including the blockbusters Assassin’s Creed 2 and James Cameron’s Avatar: The Game for the Xbox 360 and PS3 and a wide-ranging portfolio of very well-calibrated games for the Wii such as Your Shape, Just Dance, Shaun White and Rabbids Go Home," commented Yves Guillemot, Chief Executive Officer.
He continued, "Growth is expected to be even stronger in the fourth quarter, fueled by the launches of Tom Clancy’s Splinter Cell Conviction, Red Steel 2 and R.U.S.E. Finally, thanks to the investments we have made in recent years to develop our creative workforce, we will be launching numerous initiatives and innovations in the short and medium-term in all segments of the industry, both for current and future consoles and for on-line games."
Ubisoft is expecting full-year sales of around €1.040 billion and current operating income before stock-based compensation representing at least 7% of sales.
