Ubisoft 2001 Annual Report Download - page 34

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34
2.3 Activity analysis
The intra-Group relationships are as follows :
■production companies bill their work according to how far
their projects have advanced,
■marketing companies are billed by Ubi Soft Entertainment
S.A. on the basis of their sales volume.
Services rendered by the production and marketing companies
are billed according to market conditions.
Ubi Soft Entertainment does not own the premises it occupies
in any country.
2.3.1 Annual and quarterly consolidated sales
2001/2002 2000/2001 Growth
Fisrt quarter 60.3 23.0 162%
Second quarter 53.1 42.9 24%
First half year 113.4 65.9 72%
Third quarter 165.1 114,4 45%
Fourth quarter 90.5 79.5 14%
Second half year 255.6 193.9 32%
Total 369.0 259.8 42%
Sales in million
Ubi Soft's sales rose by 42% in the 2001/2002 financial year.
On a like-for-like basis (i.e. excluding the acquisition of 3D
Planet (Italy), Sinister Games (United States), and Red Storm
(United States), which have been consolidated since October 1,
2000; Blue Byte (Germany), which has been consolidated
since February 6, 2001; and the Entertainment Division of TLC,
which was consolidated with effect from March 13, 2001),
sales rose by 18%.
This growth in the organization's sales confirms Ubi Soft's
ability to outperform the market (which grew 10% in the
United States and approximately 5% in Europe in 2001).
2.3.2 Activity break-down
Ubi Soft sales are broken down into the Development, Publishing
and Distribution of video games.
Development covers revenue from titles developed, produced
and marketed by Ubi Soft's in-house studios. Development
also includes sales by third-party developers (Third Parties),
for whom Ubi Soft provides supervision and co-production,
and acts as guarantor of the quality of the final product.
Publishing covers revenue from titles designed and produced
by third-party developers, for which Ubi Soft finances and
supervises production in exchange for acquiring the license.
Ubi Soft then handles localization and manufacturing, and of
course marketing and sales distribution. The company receives
revenue from product sales and pays royalties to the brand's
developers and/or owners.
Distribution sales correspond to revenue from sales of the
products of publishers with whom Ubi Soft has concluded
distribution agreements, and for whom it handles marketing
and sales. Such agreements may be local, covering a limited
geographic area, or may cover several regions.
2001/2002 2000/2001
Development 72% 66%
Publishing 23% 31%
Distribution 5% 3%