Ubisoft reports $76.2 million operating loss in fiscal year 2009-10

Ubisoft today released its financial earnings report to investors for fiscal year 2009-10 (ending March 31), reporting sales of €871 million ($1.1 billion) with an operating loss of €60 million ($76.2 million). CEO Yves Guillemot softened investor reaction by saying: "The global economic crisis had a pronounced impact on the video game industry in 2009, which contracted by nearly 10 percent year-on-year. Ubisoft's sales were hit particularly hard, falling 18 percent over the full year despite a stabilization in the second half of the year."

Ubi's Q4 sales were up 1.9 percent year-over-year to €210 million ($266.7 million), outpacing internal guidance by €10 million ($12.7 million). The company says the inflated numbers are due partially to "a strong increase in sales of Just Dance," the "ongoing exceptional performance delivered by Assassin's Creed 2 which sold-in nearly 9 million units during the year," and higher-than-expected sales of both Red Steel 2 and Avatar.

And Guillemot predicts a sunnier 2010-11. "We forecast a return to profitable growth in 2010-11 with positive cash flow generation, driven by a games line-up that is more closely tailored to growth segments based on strong franchises." He also notes his excitement for new technology driving increased sales, saying, "Lastly, the upcoming launches of new consoles, including Natal and Sony Move, should enable us to capitalize on the technology investments that we have undertaken in recent years and re-energize the casual games segment."

Source -- Ubisoft FY2009-10 Sales & Earnings Report (warning: PDF link)