Ubisoft Reports First-Half 2014-15 Sales and Earnings Figures

Key insights

6 takeaways

01
Ubisoft reported H1 2014-15 sales of €484.2 million, a 65.1% increase over the €293.3 million recorded in the same period of the previous fiscal year.See it on page 2
02
The company achieved a non-IFRS operating income of €24.2 million, a significant turnaround from the €98.0 million operating loss reported in H1 2013-14.See it on page 8
03
Digital segment revenue surged by 90.4%, accounting for 27.8% of total sales, largely driven by the launch of Watch Dogs, which sold over 9 million units.See it on page 2
04
Management reaffirmed full-year 2014-15 targets of at least €1,400 million in sales and €150 million in non-IFRS operating income.See it on page 3
05
Net debt was reduced to €40.3 million from €141.7 million a year earlier, reflecting improved cash flow management and a record gross margin of 78.1%.See it on page 3
06
The company maintained its 2015-16 fiscal year guidance, projecting a non-IFRS operating income of at least €200 million.See it on page 8

Summary

Ubisoft’s financial results for the first half of the 2014-15 fiscal year demonstrate a significant recovery and strong operational momentum compared to the same period in the previous year. The company reported sales of €484.2 million, a 65.1% increase over the €293.3 million recorded in the first half of 2013-14. This growth was driven by the successful launch of Watch Dogs, which sold over 9 million units, and a 90.4% surge in digital segment revenues, which accounted for 27.8% of total sales.

The company achieved a non-IFRS operating income of €24.2 million, marking a substantial turnaround from the €98.0 million operating loss reported in the prior-year period. This improvement was supported by a record gross margin of 78.1% and disciplined management of selling, general, and administrative expenses. Furthermore, the company’s net debt position improved to €40.3 million, down from €141.7 million a year earlier, reflecting enhanced cash flow management.

These results, which cover global operations across all major gaming platforms, confirm the effectiveness of the company’s strategy to prioritize strong intellectual property and digital distribution. Based on these findings, management has reaffirmed its full-year targets for 2014-15, aiming for at least €1,400 million in sales and €150 million in non-IFRS operating income. The company also maintained its guidance for the 2015-16 fiscal year, projecting non-IFRS operating income of at least €200 million. The financial data presented is based on consolidated income statements and non-IFRS performance indicators, which the company utilizes to reflect recurring business performance.