Ubisoft 2019 Document de Référence: Annual Financial Report

Key insights

6 takeaways

01
Ubisoft achieved record financial performance in the 2018/2019 fiscal year with net bookings of €2,029 million, a 17.1% increase over the previous period.See it on page 31
02
The company reached a record operating margin of 22%, driven by a strategic transition toward recurring revenue models and the strength of the Assassin’s Creed and Tom Clancy franchises.See it on page 15
03
R&D and production investment reached €768 million, supported by the expansion of the studio network through the acquisition of i3D.net.See it on page 21
04
Operational strategy focuses on long-term development cycles funded by a robust capital structure, centralized treasury management, and executive compensation tied to EBIT and shareholder return targets.See it on page 86
05
Risk management and internal controls are anchored by centralized ERP systems and strict compliance with the French 'Sapin 2' anti-corruption law.See it on page 42
06
Corporate social responsibility initiatives are integrated into the core business model, with a specific focus on data privacy, sustainability, and global talent development.See it on page 123

Summary

The 2019 Ubisoft Annual Financial Report details a record-breaking fiscal year characterized by a successful digital transformation and sustained global expansion. The company achieved net bookings of €2,029 million, representing a 17.1% increase, and reached a record operating margin of 22%. This performance was driven by a strategic shift toward recurring revenue models, the strengthening of high-profile franchises like Assassin’s Creed and Tom Clancy, and significant investments in internal production and emerging technologies such as cloud gaming and artificial intelligence.

The scope of the report covers the 2018/2019 fiscal year, reflecting the company’s global operations across PC, console, and mobile segments. To support this growth, Ubisoft increased R&D and production spending to €768 million while expanding its studio network, notably through the acquisition of i3D.net. The company maintains a robust capital structure, utilizing diverse financing sources and centralized treasury management to fund long-term development cycles. Governance is anchored by a board that emphasizes diversity and independence, with executive compensation heavily tied to performance metrics, including EBIT targets and relative total shareholder return.

Risk management remains a central pillar of the company’s operational strategy. Ubisoft employs a comprehensive internal control framework, including centralized ERP systems and strict adherence to anti-corruption regulations like the French "Sapin 2" law. The company also prioritizes corporate social responsibility, integrating sustainability, data privacy, and talent development into its core business model. Despite facing competitive pressures and market volatility, the company’s financial health is underscored by a strong liquidity position and a clear commitment to long-term value creation, as evidenced by its successful resolution of shareholder disputes and ongoing investment in its global workforce.