Ubisoft First-Half 2018-19 Sales and Earnings Figures

Key insights

7 takeaways

01
Ubisoft reported first-half 2018-19 sales of €767.0 million and net bookings of €746.1 million, marking a 60% increase over the same period in the previous fiscal year.See it on page 1
02
Non-IFRS operating income surged to €110.2 million, a significant improvement from the €3.1 million recorded in the first half of 2017-18.See it on page 4
03
Digital net bookings reached €519.2 million, accounting for 69.6% of total net bookings.See it on page 7
04
Back-catalog performance was a primary growth driver, with net bookings increasing 48.8% to €564.9 million.See it on page 3
05
Cash flow from operations shifted to a positive €88.4 million, compared to a negative €83.6 million in the prior year.See it on page 13
06
Ubisoft reaffirmed its full-year 2018-19 targets, aiming for approximately €2,000 million in sales and €2,050 million in net bookings.See it on page 1
07
Growth was underpinned by strong player engagement in the Assassin’s Creed franchise and expansion within PC, mobile, and Asian markets.See it on page 2

Summary

Ubisoft’s financial results for the first half of the 2018-19 fiscal year demonstrate robust growth and improved operational efficiency, driven by strong back-catalog performance and successful live operations. The company reported first-half sales of €767.0 million and net bookings of €746.1 million, representing a 60% increase compared to the same period in the previous fiscal year. This performance exceeded internal targets, particularly during the second quarter, where net bookings reached €364.6 million.

Key financial indicators highlight a significant turnaround in profitability. Non-IFRS operating income rose to €110.2 million, a substantial improvement from the €3.1 million recorded in the first half of 2017-18. Digital net bookings accounted for 69.6% of the total, reaching €519.2 million, while back-catalog net bookings grew by 48.8% to €564.9 million. The company also saw a positive shift in non-IFRS cash flow from operations, which reached €88.4 million, compared to a negative €83.6 million in the prior year.

The company’s growth is supported by high player engagement, particularly within the Assassin’s Creed franchise, and strong momentum in the PC and mobile segments, with notable expansion across Asian markets. Ubisoft maintains a global operational scope, with North America and Europe remaining primary markets. The company confirmed its full-year 2018-19 targets, aiming for approximately €2,000 million in sales and €2,050 million in net bookings.

Methodologically, the financial figures reflect the adoption of the IFRS 15 revenue standard, which impacts the timing of revenue recognition for games with online functions. The report utilizes both IFRS and non-IFRS indicators to provide a comprehensive view of performance, with non-IFRS metrics adjusted to exclude items such as stock-based compensation and specific restructuring costs. The company also executed a significant share buyback program to conclude a swap contract related to previous capital restructuring.