Ubisoft First Quarter 2016-17 Sales Results

Key insights

7 takeaways

01
Ubisoft’s Q1 2016-17 sales reached €139.1 million, a 44% year-on-year increase that exceeded the company's €125 million target.See it on page 2
02
Digital revenue accounted for 75.3% of total sales, a significant rise from 56% in the same quarter of the previous year.See it on page 2
03
Recurring player investments, including DLC, subscriptions, and digital items, surged by 113.8% to reach €47.9 million.See it on page 2
04
Monthly active users grew by 53% year-on-year, while back-catalogue sales increased by 36.3% to €126.8 million.See it on page 2
05
North America remained the primary market, contributing 55% of total sales, with PlayStation 4 and Xbox One serving as the dominant hardware drivers.See it on page 4
06
The company reaffirmed its full-year targets of €1,700 million in sales and €230 million in non-IFRS operating income.See it on page 2
07
Strategic priorities for the remainder of the fiscal year include expanding into Asian markets and further developing eSports and virtual reality initiatives.See it on page 1

Summary

Ubisoft’s first-quarter sales results for the 2016-17 fiscal year demonstrate strong financial performance and successful execution of the company’s digital-first strategic plan. Total sales reached €139.1 million for the period ending June 30, 2016, representing a 44% year-on-year increase and exceeding the company’s initial target of €125 million. This growth was largely driven by high player engagement, with monthly active users rising 53% compared to the previous year.

A central finding of the report is the record-breaking shift toward digital revenue, which accounted for 75.3% of total sales, up from 56% in the same quarter of the prior year. Recurring player investments—comprising digital items, subscriptions, and downloadable content—surged by 113.8% to reach €47.9 million. Back-catalogue sales also contributed significantly to the quarter’s success, rising 36.3% to €126.8 million. Geographically, North America emerged as the primary market, representing 55% of total sales, while the PlayStation 4 and Xbox One platforms remained the dominant drivers of hardware-based revenue.

The company maintains a positive outlook for the remainder of the 2016-17 fiscal year, reaffirming its full-year targets of €1,700 million in sales and €230 million in non-IFRS operating income. Strategic priorities moving forward include continued expansion into Asian markets, further development of eSports and virtual reality initiatives, and the leveraging of established brands across new media. Additionally, the company is strengthening its corporate governance through the proposed appointment of two new independent directors with expertise in digital customer experience and global financial strategy.