Ubisoft Full-Year 2016-17 Sales and Earnings Figures

Key insights

6 takeaways

01
Ubisoft achieved record-high non-IFRS operating income of €237.7 million, a 40.7% increase over the previous fiscal year, with a record operating margin of 16.3%.See it on page 4
02
Digital revenue grew to €729.3 million, accounting for 50% of total sales compared to 32% in the prior year.See it on page 1
03
Player recurring investment surged by 131.2% to €304 million, reflecting a successful shift toward a recurring business model.See it on page 1
04
Back-catalog sales increased significantly to 44.5% of total revenue, up from 25.7% in 2015-16, supported by a 26.7% rise in monthly active users.See it on page 1
05
Total annual sales rose 4.7% to €1,459.9 million, driven by the performance of key titles including Tom Clancy’s Ghost Recon Wildlands and For Honor.See it on page 1
06
The company set a sales target of approximately €1,700 million for 2017-18 and raised its 2018-19 operating margin projection to 21%.See it on page 1

Summary

Ubisoft’s fiscal year 2016-17 financial results demonstrate the successful execution of a strategic shift toward a more profitable, recurring business model. The company achieved record-high non-IFRS operating income of €237.7 million, a 40.7% increase over the previous year, and reached a record operating margin of 16.3%. Total annual sales rose 4.7% to €1,459.9 million, aligning with company targets. This performance was driven by significant growth in digital revenue, which reached €729.3 million—representing 50% of total sales compared to 32% in the prior year—and a substantial 131.2% surge in player recurring investment to €304 million.

The company’s transformation is further evidenced by the strength of its back-catalog, which accounted for 44.5% of total sales, up from 25.7% in 2015-16. This growth was supported by high player engagement, with monthly active users increasing by 26.7%. Key titles such as Tom Clancy’s Ghost Recon Wildlands and For Honor were instrumental in these results, helping the company maintain a leading position as a global publisher throughout early 2017.

Looking ahead, the company has set a sales target of approximately €1,700 million for 2017-18. Furthermore, it has revised its 2018-19 strategic targets to reflect the positive impact of its recurring revenue model, now projecting an operating margin of 21%. The strategy focuses on leveraging established franchises, expanding digital transformation, and increasing the lifetime value of games. These financial figures are based on non-IFRS data, which the company utilizes to provide a clearer view of its operational performance, supplemented by audited IFRS consolidated statements covering global operations across major markets including the US, Europe, Japan, and Australia.