Ubisoft Full-Year 2017-18 Sales and Earnings Figures

Key insights

7 takeaways

01
Ubisoft achieved record profitability in fiscal year 2017-18, with total sales rising 18.6% to €1,731.9 million and non-IFRS operating income increasing 26.2% to €300.1 million.See it on page 1
02
Digital revenue grew 37.8% to €1,004.7 million, now representing 58% of total annual sales, signaling a successful transition toward a digital-first business model.See it on page 4
03
Player Recurring Investment (PRI) surged by 58.7%, driven by digital items, subscriptions, and season passes, while back-catalog sales grew by 27.2%.See it on page 1
04
Growth was anchored by the successful launch of Far Cry 5, the company's second-largest release ever, alongside sustained performance from Assassin’s Creed Origins and Rainbow Six Siege.See it on page 2
05
Rainbow Six Siege experienced significant growth in esports viewership and player registration, contributing to a record peak in concurrent users during the fourth quarter.See it on page 1
06
North America remains the dominant market at 47% of total sales, followed by Europe at 37%.See it on page 6
07
Future strategic priorities include expanding into PC and mobile sectors in China, further developing esports and online services, and investing in artificial intelligence.See it on page 2

Summary

Ubisoft achieved record-level profitability and strong financial growth for the 2017-18 fiscal year, exceeding its initial performance targets. Total annual sales reached €1,731.9 million, representing an 18.6% year-on-year increase. This growth was driven by the successful launch of major titles, including Far Cry 5—the company’s second-largest release ever—and sustained engagement for established franchises like Assassin’s Creed Origins and Rainbow Six Siege. The latter saw significant growth in esports viewership and player registration, contributing to a record peak in concurrent users during the fourth quarter.

The company’s financial performance reflects a successful digital transformation, with annual digital revenue rising 37.8% to €1,004.7 million, now accounting for 58% of total sales. Player Recurring Investment (PRI), which includes digital items, subscriptions, and season passes, grew by 58.7%, while back-catalog sales increased by 27.2%. These figures underscore a shift toward a more recurring business model. Consequently, non-IFRS operating income rose 26.2% to €300.1 million, achieving a record operating margin of 17.3%.

Geographically, North America remained the primary market, contributing 47% of total sales, followed by Europe at 37%. The company’s strategic focus for the future includes expanding its presence in the PC and mobile sectors, particularly in China, and further developing its esports and online services platforms. To maintain transparency during a transition to new revenue recognition standards (IFRS 15), the company has introduced "Net Bookings" as a key performance indicator. Looking ahead to 2018-19, Ubisoft maintains its targets for operating income and free cash flow, supported by a robust pipeline of upcoming AAA titles and continued investment in artificial intelligence and online infrastructure.