Ubisoft 2002 Annual Report Download - page 31

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2003
31
FINANCIAL
REPORT
General presentation
Exclusive licensing agreement with Nintendo for the launch
of Rayman®3: Hoodlum Havoc for Game Cube™ and
GameBoy®Advance™
Tom Clancy’s Splinter Cell™ top-selling game for Xbox™ in
2002 and Tom Clancy’s Ghost Recon™ #2 selling game in
December 2002 (source: NPD)
March 2003
Tom Clancy’s Splinter Cell™ on Xbox™ voted game of the year
by the Academy of Interactive Arts and Sciences
Rayman® 3:Hoodlum Havoc:top-seller on GameBoy®Advance™
in France, Germany and the UK, and #2 selling game for
Game Cube™ in France and Germany. Tom Clancy’s Splinter
Cell™ PC ranked #1 in sales in France and #2 in the UK,
Germany and Spain (source: Chart Track, Media Control, Gkk, week of March
10 - 16,2003)
4 PC products lead sales in Germany and 3 PC products are
among the top five in the UK (source: Chart Track, Media Control, Gfk,
week of March 17 - 23, 2003)
Launch of Shadowbane™, the first massively multiplayer
game published by Ubisoft
1.3.1 Quarterly and annual consolidated sales
At current exchange rates,sales progressed 23% during the fiscal
year 2002/2003. At constant exchange rates, growth amounted
to 30%. No acquisitions were made during the fiscal year.
Organic growth in sales confirmed Ubisoft's ability to
outperform the market (up 14% in the United States and
about 12% in Europe in 2002).
1.3.2 Breakdown of sales by core
activity
Ubisoft's sales are distributed over the three core activities of the
video games industry:development,publishing and distribution.
Development covers revenues from titles developed,produced
and marketed by Ubisoft's in-house studios.Development also
includes sales by third-party developers, for which Ubisoft
provides supervision and co-production, and acts as guarantor
of the quality of the final product.
Publishing covers revenues from titles designed and produced
by third-party developers, for which Ubisoft finances and
supervises production in exchange for acquiring the license.
Ubisoft 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 revenues from sales of the
products of publishers with which Ubisoft has concluded
distribution agreements, and for which it handles marketing
and sales. Such agreements may be local, covering a limited
geographic area,or may cover several regions.
With the commercial success of titles developed by Ubisoft,
growth in the development area was 31%. It now represents
77% of sales, versus 72% the previous year.
1.3
Analysis of activity and comments
on results for FY 2002/03
2002/2003 2001/2002
Development 77% 72%
Publishing 18% 23%
Distribution 5% 5%
Consolidated sales (million euros) 2002/2003 2001/2002 Growth
First quarter 32.0 60.3 -47%
Second quarter 51.5 53.1 -3%
First half 83.5 113.4 -26%
Third quarter 190.5 165.1 +15%
Fourth quarter 179.0 90.5 +98%
Second half 369.5 255.6 +45%
Total 453.0 369.0 23%