Ubisoft Full-Year 2018-19 Earnings Results

Key insights

7 takeaways

01
Ubisoft achieved record financial performance in fiscal year 2018-19, with net bookings rising 17.1% to €2,028.6 million and non-IFRS operating income increasing 49% to €446 million.See it on page 1
02
Digital net bookings grew 39% to represent 68.8% of total revenue, successfully surpassing the company's 65% target.See it on page 1
03
Player Recurring Investment (PRI) from DLC, season passes, and subscriptions rose 33.4%, now accounting for 31.7% of total net bookings.See it on page 1
04
The back catalog remains a primary revenue driver, contributing 56.5% of total net bookings for the fiscal year.See it on page 1
05
Rainbow Six Siege reached a major milestone by surpassing €1 billion in cumulative net bookings, supported by a record 100 million active unique players across the company's portfolio.See it on page 1
06
Regional and platform expansion was significant, with PC net bookings increasing 78.7% and Asian market net bookings rising 62.4%.See it on page 7
07
For fiscal year 2019-20, Ubisoft projects further growth with a target of €2,185 million in net bookings and €480 million in non-IFRS operating income, supported by four upcoming AAA title releases.See it on page 4

Summary

Ubisoft achieved record financial performance for the 2018-19 fiscal year, characterized by significant growth in digital engagement and recurring revenue streams. The company reported net bookings of €2,028.6 million, a 17.1% increase over the previous year, and a 49% rise in non-IFRS operating income to €446 million. This growth was supported by a record 100 million active unique players and strong performance from key franchises, including Rainbow Six Siege, which surpassed €1 billion in cumulative net bookings, and Assassin’s Creed Odyssey.

The company’s strategic shift toward a more recurring business model proved successful, with digital net bookings rising 39% to reach 68.8% of total net bookings, exceeding the 65% target. Player Recurring Investment (PRI)—comprising DLC, season passes, and subscriptions—grew by 33.4%, accounting for 31.7% of total net bookings. Additionally, the back catalog demonstrated robust performance, contributing 56.5% of total net bookings. Geographically, the company saw notable expansion, with PC net bookings increasing by 78.7% and Asian market net bookings rising by 62.4%.

Management attributes these results to the quality of live services and the ability to engage players across multiple platforms and regions. The company’s financial position strengthened, with free cash flow reaching €310.3 million and a reduction in net debt to €293.8 million. Looking ahead to the 2019-20 fiscal year, Ubisoft projects continued growth with a target of €2,185 million in net bookings and €480 million in non-IFRS operating income. The company plans to sustain this momentum through the release of four AAA titles and continued investment in its internal studio network and digital distribution platform, Uplay, to capitalize on the evolving global gaming landscape.