Ubisoft FY18 Earnings

Key insights

7 takeaways

01
Ubisoft achieved 1,732 million euros in annual sales for FY18, representing a 19% year-over-year increase driven by titles like Far Cry 5 and Assassin’s Creed Origins.See it on page 9
02
Digital revenue reached 1,005 million euros, accounting for 58% of total sales compared to 50% in the previous fiscal year.See it on page 12
03
Recurring player investment from in-game items, DLC, and subscriptions grew by 59% to 483 million euros, making up 28% of total revenue.See it on page 13
04
The company's back-catalog generated 826 million euros, contributing 48% of total annual sales and demonstrating the long-term value of the existing portfolio.See it on page 14
05
Operating income rose to 300.1 million euros, bolstered by improved marketing efficiency and the scalability of digital distribution.See it on page 18
06
For FY19, Ubisoft projects net bookings of approximately 2,050 million euros and non-IFRS operating income of 440 million euros.See it on page 24
07
Strategic growth initiatives for the upcoming year focus on expanding into mobile and PC markets in China and integrating streaming and AI technologies.See it on page 7

Summary

Ubisoft’s fiscal year 2018 earnings report details a period of robust financial growth and operational success, characterized by a transition toward digital-first revenue streams and recurring player investment. The company reported annual sales of 1,732 million euros, a 19% year-over-year increase that exceeded internal targets. This performance was driven by the strong reception of major titles, including Far Cry 5 and Assassin’s Creed Origins, alongside sustained engagement in live-service titles such as Rainbow Six Siege.

Financial results highlight a significant shift in the company’s business model. Digital revenues reached 1,005 million euros, accounting for 58% of total sales, up from 50% in the previous year. Recurring player investment—comprising in-game items, downloadable content, and subscriptions—grew by 59% to 483 million euros, representing 28% of total revenue. Furthermore, the back-catalog contributed 826 million euros, or 48% of total sales, underscoring the long-term viability of the company's portfolio. Operating income rose to 300.1 million euros, reflecting improved marketing efficiency and the scalability of digital distribution.

The report outlines a strategic focus on long-term growth through continued investment in intellectual property, internal team development, and community engagement. Key operational strengths include a proven track record in production and an adaptable organizational structure. Looking ahead to fiscal year 2019, the company projects net bookings of approximately 2,050 million euros and non-IFRS operating income of 440 million euros. Future growth initiatives center on expanding into mobile and PC markets, particularly in China, and leveraging emerging technologies like streaming and artificial intelligence to enhance player experiences. The company maintains a strong liquidity position, supported by 1,250 million euros in committed available funding.