* 2007-08 financial targets revised upwards:
o Sales to top 840 million
o Current operating income before stock options to exceed 12 percent of sales.
* Titles release schedule updated.Initial forecasts for fiscal 2008-09.
London, December 13, 2007 - Today Ubisoft, one of the world's largest video game publishers, announced record sales performance for its Assassin's Creed video game, raised its guidance for fiscal 2007-08, updated its games release schedule, and issued its initial forecasts for 2008-09.
Record performance for Assassin's Creed
Assassin's Creed has greatly outstripped Ubisoft's sales expectations and currently ranks among the two or 3 best-selling games for the PLAYSTATION®3 computer entertainment system and Xbox360® video game and entertainment system in the vast majority of geographical regions. In less than four weeks Assassin's Creed recorded more than two and a half million units in sell-through sales worldwide, and is the fastest-selling new video game intellectual property in the US ever. Consequently, Ubisoft now forecasts that it will sell a minimum of five million units of the game in 2007-08 compared with its previous estimate of approximately three million.
2007-08 guidance raised and games release schedule updated
As a result of this outstanding sales performance and solid showings from Ubisoft's other games - particularly its "casual" range - Ubisoft has significantly raised its forecasts for 2007-08. At the same time it has strengthened the line-up of games for next year, with titles such as Tom Clancy's EndWar, Brothers In Arms Hell's Highway and Far Cry® 2 now scheduled for release in fiscal 2008-09 rather than the fourth quarter of 2007-08.
The sales target for 2007-08 has been raised to more than 840 million, with around 410 million for the third quarter, versus previous forecasts of 825 million and 330 million respectively.
The target for current operating income before stock options has been significantly revised upwards to at least 12 percent of sales, compared with the previously announced forecast of at least 9 percent. This reflects the combined impact of the stellar performance turned in by Assassin's Creed and the ensuing major leverage effect on profitability, as well as lower-than-anticipated research and development costs due to the postponed release dates for Tom Clancy's End War, Brothers in Arms and Far Cry 2.
Yves Guillemot, Chief Executive Officer of Ubisoft, stated: "With the exceptional performance of Assassin's Creed, the fastest-selling new video game intellectual property in the US ever, Ubisoft's teams have once again demonstrated their expertise in creating and promoting major brands. These regular-sequel franchises are a source of very high profitability both in the short and long term. Drawing on its strong internal development capacities, Ubisoft is currently in an ideal position to continue to develop numerous new creations - an essential condition for winning market share and ensuring strong growth going forward."
Initial forecasts for fiscal 2008-09
Today Ubisoft announced its initial forecasts for fiscal 2008-09. The Company estimates that it will achieve sales of approximately 975 million and current operating income representing at least 11 percent of sales. These forecasts are notably based on the launch of (i) four new brands, including Tom Clancy's EndWar, (ii) seven franchises including Brothers in Arms, Far Cry 2 and Tom Clancy's Splinter Cell®, and (iii) new games in the Imagine, Petz® and MyCoach series. More details on Ubisoft's games portfolio will be provided when the sales figures for third-quarter 2007-08 are released on January 23, 2008.
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This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly compared with the actual results that will be published. The estimated financial data have been presented to the Board of Directors and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on June 27, 2007 with the French Financial Markets Authority (l'Autorité des marchés financiers)).
Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide and has grown considerably through a strong and diversified line-up of products and partnerships. Ubisoft has offices in 21 countries and sales in more than 50 countries around the globe. It is committed to delivering high-quality, cutting-edge video game titles to consumers. Ubisoft generated sales of 680 million for the 2006-07 fiscal year. To learn more, please visit www.ubisoftgroup.com.
® 2007 Ubisoft Entertainment. All Rights Reserved. Assassin's Creed, Petz, Splinter Cell, Far Cry, EndWar, Ubisoft, Ubi.com and the Ubisoft logo are trademarks of Ubisoft Entertainment in the U.S. and/or other countries. Far Cry 2 based on Crytek's original Far Cry directed by Cevat Yerli.
® 2007 Gearbox Software, L.L.C. All rights reserved. Published and distributed by Ubisoft Entertainment under license from Gearbox Software, L.L.C. Brothers in Arms is a trademark of Gearbox Software and is used under license.
Microsoft, Xbox, Xbox 360, and the Xbox logos are trademarks of the Microsoft group of companies.
"PLAYSTATION" is a registered trademark of Sony Computer Entertainment Inc.