Ubisoft Losses Increase Despite Improved Sales Performance

Ubisoft's net loss for the 2011 fiscal year ended March 31 increased 5 percent from the year before to €52.1 million ($74 million), despite sales approaching €1.04 billion ($1.48 billion) for the period, a 19 percent increase over fiscal 2010. Though gross profits on those sales were up to over €673 million ($955.4 million) for the year, the company plowed more money into expenses including R&D, marketing, administration and a one-time reorganization to lead to the increased loss. Fiscal fourth quarter sales came in at €178 million ($252.7 million), down 15.2 percent from the previous year but above guidance of €159 million ($225.7 million), thanks to strong sales of dance titles and 3DS launch software in 2011. The Wii represented a 38 percent plurality of Ubisoft's business for the full fiscal year, up from 26 percent the year before. Despite the 3DS launch, the company saw only 10 percent of its sales from portables this year, down from 18 percent in fiscal 2010. The Paris-based company now see a 55 percent majority of its sales come from North America, an increase from 43 percent in 2010. For the current fiscal year, Ubisoft expects sales between €1.04 billion ($1.48 billion) and €108 billion ($1.54 billion), with recurring operating income between €40 million ($56.9 million) and €60 million ($85.4 million). Looking forward, Ubisoft president Yves Guillemot said the company would "consolidate our leadership position in dance games" with several Move and Kinect titles, and a focus on multiplayer modes for the "vast majority" of titles on high definition consoles.