Ubisoft First-Half 2012-13 Sales and Earnings Figures

Key insights

6 takeaways

01
Ubisoft increased first-half sales by 12.1% to €279.2 million, driven by Tom Clancy’s Ghost Recon Future Soldier, Just Dance 4, and a 59% surge in online segment revenue.See it on page 2
02
The company reported a current operating loss of €58.1 million, up from €49.3 million in the previous year, due to increased marketing spend for second-half title launches.See it on page 3
03
Management raised full-year sales targets to a range of €1,200 million to €1,260 million and increased the upper end of operating income guidance to €100 million.See it on page 4
04
Digital expansion remains a core strategy, evidenced by the Uplay PC platform reaching 37 million members and a strategic focus on free-to-play models for PC and mobile.See it on page 5
05
Despite a net debt increase to €152.5 million, the company maintains a strong market position as the fourth-largest independent publisher in the U.S. and the third-largest in Europe.See it on page 4
06
Positive performance indicators, including strong initial sell-through for Assassin’s Creed 3 and favorable playtest results for Far Cry 3, underpin the company's optimistic full-year outlook.See it on page 2

Summary

Ubisoft’s financial results for the first half of the 2012-13 fiscal year demonstrate a period of strategic investment and revenue growth, characterized by a 12.1% increase in sales to €279.2 million compared to the same period in the previous year. This growth was primarily driven by the performance of major titles such as Tom Clancy’s Ghost Recon Future Soldier and Just Dance 4, alongside a significant 59% surge in online segment revenues. Despite these gains, the company reported a current operating loss of €58.1 million, an increase from the €49.3 million loss recorded in the first half of 2011-12. This deficit is attributed to heightened selling and marketing expenses incurred to support the launch of key titles scheduled for the second half of the fiscal year.

The company’s financial position reflects a deliberate focus on long-term brand development and digital expansion. While net debt increased to €152.5 million, management maintains a positive outlook, citing strong initial sell-through figures for Assassin’s Creed 3 and favorable playtest results for Far Cry 3. Consequently, Ubisoft has revised its full-year sales target upward to a range of €1,200 million to €1,260 million and raised the upper end of its current operating income guidance to €100 million.

Geographically, the company maintained its market standing, ranking as the fourth-largest independent publisher in the United States and the third-largest in Europe. The results underscore a transition toward digital distribution and online services, evidenced by the launch of the Uplay PC platform, which reached 37 million members. These investments in R&D and marketing are intended to capitalize on the upcoming console cycle and the growing popularity of free-to-play models across PC and mobile segments.