Ubisoft Reports First Quarter 2014-15 Sales

Key insights

7 takeaways

01
Ubisoft achieved record first-quarter sales of €360 million, a 374% year-over-year increase that surpassed the company's initial €310 million projection.See it on page 1
02
The launch of the new intellectual property Watch Dogs was the primary growth driver, achieving 8 million sell-in units and establishing the title as a major franchise.See it on page 1
03
Digital segment revenue grew by 149% to €84 million, fueled by Watch Dogs, mobile Free-to-Play titles, and smaller digital releases.See it on page 1
04
Ubisoft rose to become the second-largest independent publisher in both the United States and Europe during the first half of the 2014 calendar year.See it on page 2
05
The company maintained its full-year 2014-15 financial targets of at least €1,400 million in sales and €150 million in non-IFRS operating income.See it on page 2
06
Ubisoft strengthened its liquidity by extending its syndicated loan to €250 million with a maturity date of July 2019.See it on page 2
07
At E3 2014, Ubisoft secured a 27% share of total YouTube views, driven by high interest in upcoming titles Assassin’s Creed Unity and Far Cry 4.See it on page 1

Summary

Ubisoft’s first-quarter fiscal 2014-15 results demonstrate significant financial growth, driven primarily by the successful launch of the new intellectual property, Watch Dogs. The company reported record quarterly sales of €360 million, a 374% increase compared to the €76 million recorded in the same period of the previous fiscal year. This performance exceeded initial company projections of €310 million. The digital segment served as a key growth engine, with sales rising 149% to €84 million, bolstered by the performance of Watch Dogs, mobile Free-to-Play titles, and smaller digital releases.

The success of Watch Dogs, which achieved 8 million sell-in units, established it as a major franchise and underscored the company’s ability to launch new brands effectively. Market share data further reflects this momentum; during the first half of the 2014 calendar year, Ubisoft became the second-largest independent publisher in both the United States and Europe, significantly improving its standing from the previous year. Additionally, the company’s portfolio received high visibility at E3 2014, where it secured a 27% share of YouTube views and top rankings in industry charts for upcoming titles like Assassin’s Creed Unity and Far Cry 4.

Looking ahead, Ubisoft maintains its full-year 2014-15 targets, aiming for at least €1,400 million in sales and €150 million in non-IFRS operating income. While the company anticipates a decline in second-quarter sales due to a different release schedule compared to the prior year, it has strengthened its financial position by extending its syndicated loan to €250 million with a maturity date of July 2019. These results confirm the company’s strategic focus on blockbuster brand creation and digital expansion.