Ubisoft FY18 Earnings

Key insights

7 takeaways

01
Ubisoft reported H1 FY18 sales of 466 million euros, marking a 66% year-over-year increase.See it on page 11
02
Player recurring investment from live operations and post-launch content grew by 83% year-over-year.See it on page 22
03
Digital sales increased by 69% compared to the previous year, highlighting a successful shift toward digital distribution.See it on page 14
04
The back-catalog contributed 379 million euros in H1, representing a 48% increase over the prior year.See it on page 15
05
Non-IFRS operating income reached 3 million euros, a 65 million euro improvement over the same period in the previous year.See it on page 16
06
Growth was primarily driven by the launch of Mario + Rabbids Kingdom Battle and the performance of the Tom Clancy franchise, specifically Rainbow Six Siege and Ghost Recon Wildlands.See it on page 22
07
The company projects 1.7 billion euros in revenue and 270 million euros in non-IFRS operating income for the full fiscal years 2018 and 2019.See it on page 16

Summary

Ubisoft’s fiscal year 2018 first-half earnings report highlights a period of significant financial growth and operational success, driven by a strategy centered on high-quality game releases and long-term support for live service titles. The company reported H1 sales of 466 million euros, representing a 66% year-over-year increase. This performance was bolstered by the successful launch of titles such as Mario + Rabbids Kingdom Battle and the continued strength of the Tom Clancy franchise, particularly Rainbow Six Siege and Ghost Recon Wildlands.

The company’s financial transformation is characterized by a shift toward digital distribution and recurring revenue streams. Digital sales grew by 69% year-over-year, while player recurring investment—derived from live operations and post-launch content—increased by 83%. This focus on long-term engagement has resulted in a robust back-catalog, which contributed 379 million euros in H1, a 48% increase compared to the previous year. Non-IFRS operating income reached 3 million euros, marking a 65 million euro improvement over the prior year’s first half.

Methodologically, the report utilizes internal financial data and market performance metrics to track progress against a three-year strategic plan initiated in 2016. The company emphasizes its multi-studio organization and investment in team capabilities as the foundation for this growth. Looking ahead, Ubisoft maintains a positive outlook for the remainder of fiscal year 2018 and 2019, targeting 1.7 billion euros in revenue and 270 million euros in non-IFRS operating income. The strategy remains focused on maximizing the value of its intellectual properties through consistent content updates, community engagement, and a commitment to long-term shareholder value.