Ubisoft Reports First-Quarter 2013-14 Sales

Key insights

7 takeaways

01
Ubisoft reported Q1 2013-14 sales of €76 million, a 42.2% year-over-year decline primarily due to the lack of a major title launch compared to the previous year's Ghost Recon Future Soldier.See it on page 1
02
Despite the revenue drop, the company exceeded its initial Q1 target of €70 million, supported by a 56% increase in back-catalog sales to €60 million and a 27% rise in digital revenue to €34 million.See it on page 1
03
Management reaffirmed full-year 2013-14 guidance, projecting total sales between €1,420 million and €1,450 million and non-IFRS operating income between €110 million and €125 million.See it on page 1
04
Q2 2013-14 sales are projected to reach approximately €200 million, a 35% increase over the prior year, driven by the releases of Tom Clancy's Splinter Cell Blacklist and Rayman Legends.See it on page 2
05
Ubisoft is prioritizing the transition to next-generation consoles (Xbox One and PlayStation 4) as a primary growth driver for the upcoming fiscal period.See it on page 1
06
The company adjusted its release schedule by confirming The Crew for the current fiscal year while deferring an unannounced franchise to 2014-15.See it on page 2
07
As of the first half of 2013, Ubisoft maintained its position as the fourth-largest independent publisher in the United States and the third-largest in Europe.See it on page 2

Summary

Ubisoft’s first-quarter sales for the 2013-14 fiscal year totaled €76 million, representing a 42.2% decline compared to the same period in the previous year. This decrease was largely attributed to the absence of a major title launch comparable to the prior year's release of Tom Clancy's Ghost Recon Future Soldier. Despite the overall decline, performance slightly exceeded the company's initial target of €70 million. Growth was supported by a 56% increase in back-catalog sales, reaching €60 million, and a 27% rise in digital segment revenue, which totaled €34 million.

The company maintains its full-year 2013-14 financial targets, projecting total sales between €1,420 million and €1,450 million and non-IFRS operating income between €110 million and €125 million. Strategic focus remains on the upcoming transition to next-generation consoles, with management emphasizing the potential of the Xbox One and PlayStation 4 to drive a new phase of industry growth. Ubisoft’s market position remains strong, ranking as the fourth-largest independent publisher in the United States and the third-largest in Europe during the first half of 2013.

Operational updates include an adjusted release schedule, with The Crew confirmed for the current fiscal year while an unannounced franchise has been deferred to 2014-15. The second quarter of 2013-14 is expected to generate approximately €200 million in sales, a 35% increase over the same period in the prior year, driven by the releases of Tom Clancy's Splinter Cell Blacklist and Rayman Legends. The company continues to leverage its diversified portfolio and investments in open-world technology to capture market share across global regions.