Ubisoft First-Half 2016-17 Sales and Earnings Figures

Key insights

7 takeaways

01
Digital revenue surged 102.6% to €202.6 million, now accounting for 72% of Ubisoft's total sales for the first half of fiscal 2016-17.See it on page 2
02
Ubisoft improved its non-IFRS operating loss to €61.8 million, down from the €107.8 million loss recorded in the same period of the previous fiscal year.See it on page 3
03
The company transitioned from a net debt position of €155.5 million in the prior year to a net cash position of €37.7 million as of September 30, 2016.See it on page 13
04
Total sales for the first half of the fiscal year reached €281.4 million, representing a 35.7% increase compared to the previous year.See it on page 1
05
Recurring player investment, including DLC and subscriptions, grew by 132.1%, while monthly active users increased by 43.9%.See it on page 1
06
Key franchises including The Crew, The Division, and Rainbow Six Siege each surpassed 10 million registered players, supporting the company's focus on live operations.See it on page 1
07
Full-year non-IFRS operating income targets were raised to between €230 million and €250 million, while full-year sales targets were adjusted downward to a range of €1,610 million to €1,670 million.See it on page 2

Summary

Ubisoft’s financial results for the first half of the 2016-17 fiscal year demonstrate a successful transition toward a more profitable, recurring business model driven by digital growth and multiplayer engagement. The company reported sales of €281.4 million, a 35.7% increase over the same period in the previous year. While the company still recorded a non-IFRS operating loss of €61.8 million, this represents a significant improvement from the €107.8 million loss reported in the first half of 2015-16.

The core of this performance is the rapid expansion of digital revenue, which surged 102.6% to €202.6 million, accounting for 72% of total sales. This growth is underpinned by high player engagement, evidenced by a 43.9% increase in monthly active users and a 132.1% rise in recurring player investment, such as downloadable content and subscriptions. Key franchises, including The Crew, The Division, and Rainbow Six Siege, each surpassed 10 million registered players, validating the company’s focus on long-term live operations and multiplayer experiences.

Reflecting these positive trends, Ubisoft updated its full-year 2016-17 outlook. The company revised its non-IFRS operating income target upward to a range of €230 million to €250 million. However, the full-year sales target was adjusted downward to between €1,610 million and €1,670 million to account for more conservative projections for the second half of the year. The company also strengthened its financial position, moving from a net debt position of €155.5 million in the prior year to a net cash position of €37.7 million as of September 30, 2016.