Ubisoft posts 19 per cent increase in net sales

French publishing giant Ubisoft has posted higher profits and an increase in net sales of 19 per cent for the fiscal half-year, along with a significant reduction in company debt.

Gross profit rose from EURO 73 million to EURO 95 million - an increase of 5.2 per cent. Ubisoft said this was due to the commercial success of titles such as Rainbow Six: Lockdown, Brothers in Arms: Earned in Blood and Far Cry: Instincts.

Ubisoft lost EURO 11 million in the first six months of the year, compared to EURO 33 million during the same period last year. The publisher has cut its debt from EURO 170 million to EURO 84 million, and expects to achieve zero net debt by the end of March. Ubisoft put this down to favourable exchange rates and the disposal of shares in Gameloft.

The outlook for the rest of the year is described as "excellent", with triple-A titles such as Peter Jackson's King Kong, Prince of Persia: The Two Thrones and Brothers in Arms PSP set to boost profits further.

âUbisoft saw progress in all of its performance indicators and is today a major player in the videogame industry," said CEO Yves Guillemot.

"Indeed, already second largest independent editor in Europe, Ubisoft joined the top six in the USA, and ranks even in the top five on consoles, as it continues to gain market shares. This trend is expected to prevail in the second half of the year: with major game launches scheduled, fiscal year 2005-2006 could well be an outstanding year.â