Ubisoft plans to slash debt, raises 03/04 projections

French publisher Ubisoft hopes to cut its debt burden by almost 25 per cent by the end of the current financial year, aided by strong sales and predicted 10 to 15 per cent market growth.

The publisher expects to have slashed its debts by some â'¬40 million by the end of the 03/04 year, which comes to a close in March 2004, leaving it with only â'¬130 million of outstanding debt.

Speaking at a shareholders meeting in Paris, CEO Yves Guillemot outlined the company's financial plans for the coming year, which anticipate sales growth of between 17 and 22 per cent - ahead of the predicted growth of 10 to 15 per cent for the games market as a whole.

The publisher expects an operating profit of between â'¬42 and â'¬48 million (measured using French accounting rules; US generally accepted accounting practices (GAAP) would place the figure at between â'¬45 and â'¬51 million) for 03/04, compared with the â'¬37.1 million figure in 02/03 - itself a 20 per cent annual jump.

The company's growth in the coming year will be buoyed by one of its most extensive release schedules ever, with some 65 new titles - including several new products in the key Tom Clancy franchise - due for release during the period.