Ubisoft H1 FY12 Earnings Presentation

Ubisoft achieved stronger-than-anticipated financial results during the first half of fiscal year 2012, marked by an 8-percentage-point expansion in gross margins and a significant reduction in operating losses compared to the prior year. This performance was underpinned by robust growth across the company’s high-definition, casual, and online gaming segments. Key contributors included the continued success of the Just Dance franchise and a strategic expansion into social gaming, exemplified by the inclusion of The Smurfs & Co among the top 15 titles on Facebook.

The company’s strategic focus centers on diversifying its digital portfolio and deepening consumer engagement through proprietary infrastructure. By leveraging the ManiaPlanet platform, Ubisoft is expanding its reach into the role-playing and first-person shooter genres. Simultaneously, the Uplay ecosystem has successfully cultivated direct relationships with 17 million registered users. Data confirms that this integration effectively drives higher player engagement and brand loyalty, which serves to enhance the long-term revenue potential of core franchises.

Looking toward the second half of the fiscal year, the company maintains a positive outlook, projecting growth between 2% and 7%. This optimism is supported by a high-quality release schedule featuring Assassin’s Creed Revelations, Rayman Origins, and Just Dance 3. Consequently, full-year financial guidance remains firm, with total sales anticipated to fall between €1,040 million and €1,080 million. Despite temporary cash flow impacts from one-time events during the first half, the underlying operational strength across all segments positions the company to meet its improved margin targets for the remainder of the fiscal period.