Ubisoft Full-Year 2015-16 Sales and Earnings Figures

Key insights

6 takeaways

01
Ubisoft reported total fiscal year 2015-16 sales of €1,394 million and a non-IFRS operating income of €169 million, representing a 12.1% profitability margin.See it on page 1
02
Digital revenue reached a record 32% of total sales, driven by a 45.6% increase in back-catalog sales which now account for 25.4% of total revenue.See it on page 3
03
The company’s focus on high-engagement multiplayer titles was validated by the performance of Tom Clancy’s The Division, which reached 9.5 million registered users, and Rainbow Six Siege.See it on page 2
04
Management projects fiscal year 2016-17 sales of approximately €1,700 million and an operating income of €230 million as part of a three-year plan to reach a 20% operating margin by 2018-19.See it on page 4
05
The company’s financial position shifted from a net cash position of €211.3 million to a net debt of €41.7 million, primarily due to share buyback activities.See it on page 11
06
Despite a 4.8% year-on-year decline in total sales, the company exceeded its revised financial targets due to the successful launches of Tom Clancy’s The Division and Far Cry Primal.See it on page 2

Summary

Ubisoft’s fiscal year 2015-16 financial results demonstrate a period of strong operational performance, characterized by the successful execution of a strategy focused on high-engagement multiplayer titles and digital growth. The company reported total sales of €1,394 million, exceeding its revised targets despite a 4.8% year-on-year decline. Non-IFRS operating income reached €169 million, representing a 12.1% profitability margin, while non-IFRS diluted earnings per share rose to €1.13. These results were bolstered by the robust performance of key titles, specifically Tom Clancy’s The Division and Far Cry Primal, which achieved record-breaking launches and significantly contributed to the company’s bottom line.

A central pillar of the company’s success during this period was the expansion of its digital segment, which grew to represent a record 32% of total sales. This shift was supported by a 45.6% increase in back-catalog sales, which accounted for 25.4% of total revenue, signaling a transition toward a more recurring financial profile. The company’s multiplayer strategy proved effective, with high player retention rates observed in titles like Tom Clancy’s Rainbow Six Siege and The Division, the latter of which garnered 9.5 million registered users by the end of the fiscal year.

The company’s financial position remains stable, though it shifted from a net cash position of €211.3 million to a net debt of €41.7 million, largely due to share buyback activities. Looking ahead, management has confirmed its targets for the 2016-17 fiscal year, projecting sales of approximately €1,700 million and non-IFRS operating income of €230 million. The company continues to prioritize its three-year expansion plan, aiming for an operating margin of 20% by 2018-19, supported by a growing portfolio of owned brands and increased investment in digital and recurring revenue streams.