Ubisoft Reports First-Half 2015-16 Sales and Earnings Figures

Key insights

7 takeaways

01
Ubisoft reported H1 2015-16 sales of €207.3 million, a 57.2% decline year-over-year due to a lack of major title releases in the period.See it on page 2
02
Digital sales grew significantly to account for 48.3% of total revenue, up from 27.8% in the same period the previous year.See it on page 2
03
Back-catalog sales increased by 53.1% to €184.3 million, driven by the sustained performance of franchises like Assassin’s Creed, Far Cry, and Just Dance.See it on page 2
04
The company recorded a non-IFRS operating loss of €107.8 million and a net loss of €65.7 million, figures consistent with expected seasonal fluctuations.See it on page 3
05
Full-year guidance remains unchanged, with projections for stable year-on-year sales and a non-IFRS operating income of at least €200 million.See it on page 2
06
The second half of the fiscal year is supported by a release schedule of five major titles, including Rainbow Six Siege and The Division.See it on page 7
07
Strategic expansion efforts include the acquisition of the Ivory Tower studio and the development of a theme park project in Malaysia.See it on page 4

Summary

Ubisoft’s financial results for the first half of the 2015-16 fiscal year, ending September 30, 2015, demonstrate a period of planned transition characterized by a lack of major title releases. The company reported sales of €207.3 million, a 57.2% decline compared to the same period in the previous year, which had benefited from the launch of a major franchise title. Despite this contraction, the company exceeded its internal sales targets for the second quarter. A significant highlight of the period was the 53.1% growth in back-catalog sales, which reached €184.3 million, underscoring the enduring appeal of established franchises such as Assassin’s Creed, Far Cry, and Just Dance.

The digital segment emerged as a critical driver of performance, accounting for 48.3% of total sales, a substantial increase from 27.8% in the prior-year period. This shift toward digital distribution and engagement is central to the company’s long-term strategy. While the company recorded a non-IFRS operating loss of €107.8 million and a net loss of €65.7 million, these figures were anticipated due to the seasonal nature of the gaming industry and the concentration of major releases in the second half of the fiscal year.

Looking ahead, the company maintains its full-year 2015-16 guidance, projecting stable year-on-year sales and a non-IFRS operating income of at least €200 million. This optimism is anchored by a robust release schedule for the second half of the year, featuring five major titles including Rainbow Six Siege and The Division. Furthermore, the company continues to expand its footprint through strategic acquisitions, such as the Ivory Tower studio, and initiatives to leverage its intellectual property in broader entertainment sectors, including a planned theme park project in Malaysia.