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Ubisoft Reports On 2016-17 Q1 Sales

Ubisoft

Today, Ubisoft released its sales figures for the first fiscal quarter, which ended June 30, 2016.

Yves Guillemot, Co-Founder and Chief Executive Officer, stated “Our solid figures for the first quarter of 2016-17 have confirmed the excellent digital trends and demonstrate we are successfully executing our strategic plan. Player engagement levels reached record highs during the period, fueled by the success of The Division, Rainbow Six Siege and Hungry Shark World. MAUs were up 53% year on year, driving digital revenue to a record weighting of 75% of overall sales. Also during the period, our new line-up of games was very well received at E3, with our portfolio of titles – notably For Honor, Ghost Recon Wildlands, Just Dance 2017, South Park The Fractured But Whole, Steep and Watch_Dogs 2 – lauded for its quality and diversity and confirming its strong potential.”

“The outlook for the video game industry has never been so promising. Our growth drivers going forward include the digital transformation, the strong momentum of the PC, console and mobile markets, expansion into new geographic regions (including Asia), the excellent potential of eSports and Virtual Reality and the extension of the Group’s brands beyond video games. All of these factors will help us pursue our strong pace of value creation in the coming years”.

Sales

Sales for the first quarter of fiscal 2016-17 amounted to €139.1 million, up 44.0% (46.6% at constant exchange rates) compared with €96.6 million for the first three months of 2015-16. This first-quarter 2016-17 sales figure was higher than the target of around €125 million announced when Ubisoft released its results for fiscal 2015-16.

Back-catalogue sales rose 36.3% year-on-year to €126.8 million, demonstrating the increasingly recurring nature of our operations.

Digital revenue came to €104.8 million and accounted for 75.3% of total sales (compared with 56.0% in first-quarter 2015-16), representing a new record high for the Company. This revenue figure includes recurring player investment of €47.9 million, up by a very sharp 113.8% year-on-year. Recurring player investment represented 34.4% of overall sales during the period, illustrating the successful execution of the Group’s three-year strategic plan.

Outlook

Second-quarter 2016-17 sales

Second-quarter 2016-17 sales expected to come in at approximately €100 million.

Full-year 2016-17

Ubisoft is standing by its targets for full-year 2016-17, namely sales of around €1,700 million, non-IFRS operating income of approximately €230 million and solid free cash flow generation.

Significant event

Nomination of two new independent directors: Following a proposal from its Nomination Committee, Ubisoft’s Board of Directors has decided the appointment of Frédérique Dame and Florence Naviner as independent directors. The appointment of these two new directors will bring Ubisoft valuable and complementary experience. Frédérique Dame, currently a business angel, will notably contribute her acute expertise in digital customer experience and will enable Ubisoft to benefit from her extensive network in Silicon Valley. Florence Naviner, currently Chief Financial Officer and Senior Vice President of Wrigley, a subsidiary of Mars, Inc., will bring in-depth knowledge of all of the financial and strategic issues that a large global group in the consumer industry faces. These appointments will be subject to the approval of Ubisoft’s shareholders at the Annual General Meeting due to be held on September 29, 2016.

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