Paris, November 8, 2011 - Today, Ubisoft released its sales and earnings figures for the six months ended September 30, 2011.

Key financial data

In ? millions H1 2011-12 % H1 2010-11 %
Sales 248.5 260.5
Gross profit 158.4 63.7% 146.2 56.1%
R&D expenses (86.7) -34.9% (98.4) -37.8%
Selling expenses (87.7) -35.3% (81.9) -31.4%
General and administrative expenses (33.2) -13.4% (30.8) -11.8%
Total SG&A expenses (121.0) -48.7% (112.7) -43.2%
Current operating income/(loss)1 (49.3) -19.9% (64.9) -24.9%
Non-recurring reorganization charges - (62.1)
Operating income/(loss) (54.8) -22.1% (133.8) -51.3%
Profit/(loss) for the period (37.1) -14.9% (89.8) -34.5%
Diluted earnings/(loss) per share (in ?) (0.39) (0.93)
Diluted earnings/(loss) per share before non-recurring items1 (in ?) (0.33) (0.46)
Cash flows from operating activities (178.1) (129.8)
R&D investment expenditure* 205.0 189.9
Net cash/(debt) (101.4) (79.2)
* Including royalties but excluding future commitments.

Yves Guillemot, Chief Executive Officer, stated "First-half sales have come in around 30% higher than our initial targets. This performance reflects: a 85% growth in our Online segment; a solid showing by our back catalog, driven by Just Dance, Michael Jackson The Experience and Assassin's Creed Brotherhood, which confirms players' enthusiasm for these flagship brands; and better-than-expected sales for Driver San Francisco, boosted by very good reviews. Our strong sales figure drove another sharp increase in gross profit and enhanced our earnings performance."

Sales

Sales for the first half of 2011-12 came to ?249 million, down 4.6% (or up 0.8% at constant exchange rates) compared with the ?261 million recorded for first-half 2010-11.

Second-quarter sales totaled ?146 million versus ?99 million in the same period of 2010-11, representing an increase of 47.5% (+54.6% at constant exchange rates).

Sales in the second quarter of 2011-12 were significantly higher than the guidance of around ?99 million issued when Ubisoft released its sales figures for the first quarter of the year. This second-quarter performance reflects the following:

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