Ubisoft Medium-Term Financial Targets

Key insights

6 takeaways

01
Ubisoft targets €2.2 billion in revenue by fiscal year 2018-19, representing a 60% increase over the 2015-16 fiscal year.See it on page 1
02
The company aims to achieve a 20% operating margin, a goal intended to triple its non-IFRS operating income.See it on page 1
03
Strategic growth is supported by a projected generation of approximately €300 million in free cash flow.See it on page 1
04
The business model is shifting toward live operations and multiplayer-centric titles to extend game lifecycles and increase digital revenue shares.See it on page 1
05
Growth strategy focuses on leveraging established franchises like Assassin’s Creed and Tom Clancy to expand audiences and maintain low costs per acquisition.See it on page 1
06
The company is transitioning from traditional development models to service-oriented operations to capitalize on digital demand across console, mobile, and PC platforms.See it on page 1

Summary

Ubisoft projects significant financial growth over the three-year period ending in fiscal year 2018-19, targeting a revenue increase to €2.2 billion. This objective represents a 60% growth compared to the 2015-16 fiscal year. Alongside top-line expansion, the company aims to achieve a 20% operating margin, effectively tripling its non-IFRS operating income. These financial goals are supported by an anticipated generation of approximately €300 million in free cash flow, intended to maximize returns for shareholders and employees while fostering long-term profitability.

The strategic roadmap to reach these targets centers on two primary pillars: audience expansion and increased gamer engagement. To widen its reach, the company plans to leverage its global studio network and collaborative culture to build a robust pipeline of franchises. By enhancing brand performance and awareness through broader entertainment channels, the company seeks to maintain low costs per acquisition. Simultaneously, the transition toward live operations and a focus on multiplayer-centric titles are designed to extend the lifecycle of games, thereby increasing digital revenue shares and ensuring year-round engagement.

These objectives reflect a broader shift toward agility and data-driven decision-making within the global interactive entertainment sector. By transforming traditional development models into service-oriented operations, the company intends to capitalize on the evolving digital landscape across consoles, mobile devices, and PCs. While these forward-looking targets are subject to market risks and inherent uncertainties, they establish a clear framework for scaling the company’s portfolio of established brands, such as Assassin’s Creed and Tom Clancy, to meet the demands of a modern, service-based gaming market.