Ubisoft First-Half 2019-20 Sales and Earnings Figures

Key insights

7 takeaways

01
Ubisoft’s non-IFRS operating income plummeted to €6.9 million for the first half of fiscal year 2019-20, down from €110.2 million in the prior year, largely due to impairment charges from Ghost Recon Breakpoint.See it on page 4
02
Net bookings for the period ending September 30, 2019, totaled €661.1 million, representing an 11.4% decline compared to the same period in the previous fiscal year.See it on page 3
03
Digital revenue remains the company's primary driver, accounting for 81.2% of total net bookings and experiencing a 3.5% increase in revenue.See it on page 7
04
Established titles provided stability, with Rainbow Six Siege reaching record-high monthly active users and Assassin's Creed Odyssey showing accelerated growth in player engagement and recurring investment.See it on page 2
05
North America remains the company's dominant market, contributing 49% of total net bookings, followed by Europe at 32%.See it on page 7
06
The company has adopted the IFRS 16 lease-accounting standard, which impacts the comparability of financial figures against the 2018-19 fiscal year.See it on page 3
07
Strategic growth initiatives include the acquisition of Green Panda Games, the conversion of convertible bonds to strengthen the balance sheet, and a focus on the upcoming console generation and Asian market expansion.See it on page 2

Summary

Ubisoft’s financial results for the first half of the 2019-20 fiscal year, ending September 30, 2019, reflect a period of transition characterized by a strong back catalog performance despite a decline in overall net bookings. The company reported net bookings of €661.1 million, an 11.4% decrease compared to the same period in the previous fiscal year. While IFRS 15 sales reached €697.5 million, the company’s operating income was significantly impacted by impairment charges related to the title Ghost Recon Breakpoint, resulting in a non-IFRS operating income of €6.9 million, down from €110.2 million in the prior year.

The company’s performance was bolstered by sustained engagement in established titles. Assassin's Creed Odyssey demonstrated accelerated growth in player engagement and recurring investment, while Rainbow Six Siege achieved record-high monthly active users and continued growth in player recurring investment. Digital net bookings remained a vital component of the business, accounting for 81.2% of total net bookings, with a 3.5% increase in digital revenue. Geographically, North America remained the largest market, contributing 49% of net bookings, followed by Europe at 32%.

Methodologically, the financial statements for this period were the first to incorporate the IFRS 16 lease-accounting standard, which affected the comparability of certain figures against the 2018-19 fiscal year. The company maintains a positive outlook for the medium term, citing the upcoming console generation, expansion into the Asian market, and mobile partnerships as key drivers for future value creation. Management remains focused on long-term strategic decisions, including the recent acquisition of Green Panda Games and the successful conversion of convertible bonds to strengthen the balance sheet.