Video games firm Ubisoft ups targets as sales rise

PARIS, April 24 (Reuters) - Europe's largest video games maker Ubisoft (UBIP.PA: Quote, Profile, Research) raised on Thursday its operating income target for 2008-2009 due to royalty savings and strong sales and reported a 36 percent rise in 2007-2008 revenue.

The company said in a statement it expected a margin for operating income before stock options of 12 percent of sales versus 11 percent previously for its current book year, which runs from April 1 until March 31 next year.

For the year 2007-2008, sales rose to 928 million euros ($1.5 billion), in line with its forecast of around 920 million euros, and the company kept its operating margin before stock options at about 14 percent of sales, Ubisoft said.

The company, whose games are available on Microsoft's (MSFT.O: Quote, Profile, Research) Xbox 360, Sony's (6758.T: Quote, Profile, Research) PlayStation 3, and Nintendo's (7974.OS: Quote, Profile, Research) Wii as well as other game consoles, said games like Rainbow Six and Assassin's Creed helped push up revenue.

Ubisoft Chief Executive Yves Guillemot said in the statement that 2007-2008 was a "remarkable" year and it expected 2008 to be another record year for the industry with growth estimated to be at least 15 percent.

Ubisoft said its sales growth outpaced the market in the United States and Europe during its fourth quarter that ended March 31, posting U.S. growth of 38 percent and European growth of 43 percent and citing data from market research firms.

For the current book year, it reaffirmed that it saw sales of about 1 billion euros. For its current quarter, running from April to June, it expected sales to rise about 15 percent to 154 million euros compared to a year ago. (Reporting by Dominique Vidalon and Gilbert Kreijger; editing by Rory Channing)