Ubisoft Full-Year 2013-14 Sales and Earnings Figures

Key insights

7 takeaways

01
Ubisoft reported annual sales of €1,007 million for fiscal year 2013-14, representing a 19.9% decline compared to the previous year.See it on page 1
02
The company recorded a non-IFRS operating loss of €66 million, a significant downturn from the €100 million operating income achieved in 2012-13.See it on page 3
03
Digital revenue grew by 32% to reach €195 million, accounting for 19% of total annual sales for the fiscal year.See it on page 2
04
Sales performance was negatively impacted by an 18% decline in core gamer titles and a 24% contraction in the casual games segment.See it on page 2
05
Management has set targets for the 2014-15 fiscal year of €1,400 million in sales and at least €150 million in operating income.See it on page 1
06
The company maintained a strong gross profit margin of 71.7%, despite a slight decrease from the 72.7% margin reported in the prior year.See it on page 2
07
Future growth strategies rely on a robust release schedule featuring Watch Dogs, Assassin's Creed Unity, and Far Cry 4, alongside expansion into free-to-play mobile markets.See it on page 3

Summary

Ubisoft’s fiscal year 2013-14 financial results reflect a challenging period characterized by a decline in annual sales and a shift toward digital revenue streams. The company reported annual sales of €1,007 million, a 19.9% decrease compared to the previous fiscal year. This downturn resulted in a non-IFRS operating loss of €66 million, a significant reversal from the €100 million operating income recorded in 2012-13. The decline was primarily driven by a reduction in the number of major titles released for core gamers, which saw an 18% drop in sales, alongside a 24% contraction in the casual games segment.

Despite these headwinds, the company achieved notable successes with flagship titles such as Assassin's Creed 4 Black Flag and South Park: The Stick of Truth. A key finding is the growing importance of the digital segment, which grew by 32% to reach €195 million, accounting for 19% of total annual sales. This growth was bolstered by digital distribution and additional content sales. Furthermore, the company maintained a strong gross profit margin of 71.7%, though this was slightly lower than the 72.7% reported in the prior year.

The company’s geographic footprint remained concentrated in North America and Europe, which together accounted for the vast majority of sales. Looking ahead to 2014-15, management has confirmed an operating income target of at least €150 million and a sales target of €1,400 million. This optimistic outlook is predicated on a robust release schedule, including Watch Dogs, Assassin's Creed Unity, and Far Cry 4, as well as continued expansion in the digital and free-to-play mobile markets.