Ubisoft Reports First Quarter 2015-16 Sales

Key insights

7 takeaways

01
Ubisoft’s Q1 2015-16 sales reached €96.6 million, exceeding the initial €80 million target despite a 73.2% year-over-year decline caused by the absence of a major launch comparable to the previous year's Watch_Dogs.See it on page 1
02
Digital revenue grew significantly to account for 56% of total sales, up from 23.2% in the same period last year.See it on page 3
03
Back-catalog sales increased by 59.3%, driven by sustained demand for Assassin's Creed Unity, Far Cry 4, The Crew, and Watch_Dogs.See it on page 1
04
The company maintains its full-year 2015-16 guidance, projecting stable sales and a non-IFRS operating income of at least €200 million.See it on page 2
05
PlayStation 4 remains the leading platform at 27% of total sales, while the PC segment has grown to represent 23% of revenue.See it on page 3
06
Europe remains the primary market at 43% of total sales, followed by North America at 37%.See it on page 3
07
As of July 2015, Ubisoft has repurchased 761,699 shares as part of its ongoing share buyback program.See it on page 2

Summary

Ubisoft’s first-quarter sales for fiscal year 2015-16 reached €96.6 million, exceeding the company’s initial target of €80 million. While this figure represents a 73.2% decline compared to the same period in the previous year—which benefited from the major launch of Watch_Dogs—the current performance was bolstered by a 59.3% increase in back-catalog sales. Key titles such as Assassin's Creed Unity, Far Cry 4, The Crew, and Watch_Dogs drove this sustained demand.

The digital segment emerged as a significant growth driver, accounting for €54.1 million in revenue, or 56% of total sales, a substantial increase from the 23.2% share recorded in the prior year. Geographically, Europe remained the largest market at 43% of sales, followed by North America at 37%. Platform distribution saw the PC segment rise to 23% of total sales, while PlayStation 4 remained the leading console platform at 27%.

Looking ahead, the company maintains its full-year 2015-16 targets, projecting stable sales compared to the previous fiscal year and a non-IFRS operating income of at least €200 million. Management remains optimistic about the industry's growth trajectory, citing positive reception for upcoming titles like Assassin's Creed Syndicate, Rainbow Six Siege, and The Division. Additionally, the company continues to execute a share buyback program, having repurchased 761,699 shares as of July 2015. These results reflect a strategic focus on digital revenue expansion and the long-term monetization of established franchises.