Ubisoft 2005 Annual Report Download - page 34

Introduction
Highlights of FY 2005-06
Ubisoft is one of the leading developers and publishers of
interactive game software worldwide. In 2005, Ubisoft was
the fifth-largest independent publisher in the United
States and was ranked third in the PAL zone, which inclu-
des Europe, Australia and New Zealand, making it the
fourth-largest independent publisher in both regions com-
bined (sources NPD, Chart Track, Media Control, GFK).
Founded in 1986, Ubisoft has experienced strong and conti-
nued expansion by implementing a strategy of both internal
growth and carefully targeted acquisitions with high growth
potential. Since its listing on the stock exchange in 1996,
the group has increased its sales fourteen-fold. It currently
has an extensive catalogue of strong brands, recognized by
both industry professionals and consumers.
April 2005
Opening of a new development studio in Quebec
(Canada) in addition to the one in Montreal.
Ranked among the top five independent publishers in the
United States and in second and third place in the United
Kingdom and Germany, respectively, in the first quarter
of 2005.
May 2005
Signing of a syndicated loan of €100 million for an initial
three-year period, which may be extended by one addi-
tional year for the full initial amount and then by ano-
ther additional year for 50% of this amount. Application
for this loan was made at 200% of the initial amount.
July 2005
Pre-tax gain of €15.8 million realized on the sale of
5,155,000 shares in Gameloft SA. The share of capital
held in this company thus decreased from 27.57% to
19.9%.
August 2005
Peter Jackson’s King Kong – The Official Game of the
Movie voted best Play Station®2 game at the Games
Convention in Leipzig Germany.
September 2005
Ubisoft is the second-largest independent publisher in
Europe in the first half of 2005;
Co-publishing and distribution agreement with Hip
Interactive Europe for the launch of Rugby Challenge
2006.
Announcement of the release of several titles for the
launch of the PSP console in Europe, including Prince of
Persia®and LuminesTM. A total of six titles announced in
the first five months of the launch of the console.
October 2005
Announcement of the upcoming releases of Tom
Clancy’s Splinter Cell®Double Agent and Tom Clancy’s
Ghost Recon Advanced WarfighterTM.
In the first nine months of 2005, Ubisoft ranked as the
sixth-largest independent publisher in the United States,
second in France and Italy, third in Britain and Spain, and
fourth in Germany and Canada.
Conversion of more than 99% of the convertible bond
issued in July 1998. This operation increased the group’s
equity by €24 million.
Signing of a distribution agreement with Digital Jester
for the Crazy Frog game, based on the musical hit by the
same name.
November 2005
Announcement of a new game in the Crime Scene
Investigation series and two new PSP games for the
spring of 2006.
December 2005
Results announcement of the First half of 2005-06: ope-
rating income on ordinary activities before recording of
compensation paid in shares: -€42 million, an improve-
ment of €4 million; net income up by €21.6 million; and
indebtedness cut in half.
The group’s business is organized into three major fields of
activity: development (the creation of game software),
publishing (the acquisition of game rights and external
licenses, as well as product marketing) and distribution
(the physical delivery of the final product to all types of
retailer). Over time, Ubisoft has successfully implemented
these three activities at 13 production sites around the
world, where the talent and creativity of Ubisoft’s work-
force have yielded numerous strong brands.
This workforce comprises 3,441 individuals, all working
toward a common goal: the creation of extremely high-
quality games for a growing and increasingly demanding
audience of gamers.
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