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58
UBISOFTANNUAL REPORT 2009
1.1.2 Analysis of activity and comments on results for nancial year 2008-09
1.1.2.1 Quarterly and annual consolidated revenue
SALES
(IN MILLIONS OF EUROS)
2008-09 2007-08 Change at current
exchange rates
Change at constant
exchange rates
Q1 169 134 25.8% 33.0%
Q2 175 127 37.3% 43.6%
Q3 508 450 12.9% 17.0%
Q4 206 217 -5.1% -2.3%
Financial year total 1,058 928 14.0% 18.4%
At current exchange rates, sales rose 14.0% in nancial year 2008-09. At constant rates, the increase was 18.4%.
The year was notable for growth in the well-established Rayman®, FarCry®, Prince of Persia® and Brothers in Arms® franchises,
the continued solid performance of the casual games segment - up more than 40% - and the creation of three new multimillionaire
franchises: Shaun White Snowboarding : Road Trip, Tom Clancy’s HAWX™ and Coach ranges.
1.1.2.2 Sales by business line
Ubisoft Group’s sales come from the video game industry’s three main business lines, namely Development, Publishing,
and Distribution.
Development sales are those on titles developed, produced and marketed by Ubisoft’s internal studios. They also include revenue
posted by third-party developers, where Ubisoft provides supervision and co-production and guarantees the quality of the end
product.
Publishing sales are those of titles designed and produced by third-party developers, where Ubisoft nances and supervises
production in exchange for acquiring the licences. Ubisoft is then responsible for localisation, manufacturing, and, of course, sales
and marketing. The Company collects income from product sales and pays royalties to the developers and/or brand owners.
Distribution sales are those on products from publishers with which Ubisoft has signed distribution agreements and handles
sales and marketing. These may be local agreements (only in a specic geographic territory) or may cover several regions.
The breakdown of sales by business line is as follows:
BREAKDOWN OF SALES
BY BUSINESS LINE, AS %
2008-09 2007-08 Change in volume
Development 81% 85% +8.6%
Publishing 11% 12% +4.5%
Distribution 8% 3% +3.0%
Total 100% 100% +14%
Strong growth in distribution activity results from the signature of various major deals in the EMEA zone with, in particular,
the Soulcalibur™ and Fallout®3 games. The drop in the weight of Development activity can be explained by the very high basis
of comparison in 2007-08, due to strong successes that year for the leading titles developed by the Group’s studios: Assassin’s
Creed®, Tom Clancy’s Rainbow Six® Vegas 2 in particular.