Ubisoft Reports Third-Quarter 2013-14 Sales

Key insights

6 takeaways

01
Ubisoft reported Q3 fiscal 2013-14 sales of €520 million, representing a 35.2% decline compared to the same period in the previous year due to the console generation transition.See it on page 1
02
The company adjusted its full-year 2013-14 sales target to approximately €1,000 million, with an anticipated non-IFRS operating loss of €65 million.See it on page 2
03
Assassin’s Creed IV Black Flag was a primary performance driver with 10 million sell-in units, while the Just Dance franchise contributed 6 million units.See it on page 1
04
Ubisoft projects a return to profitability in fiscal 2014-15 with an anticipated operating income of at least €150 million, driven by upcoming titles like Watch Dogs and The Crew.See it on page 2
05
While quarterly digital sales contracted by 4%, digital revenue for the first nine months of the fiscal year grew by 12%, bolstered by free-to-play titles and downloadable content.See it on page 1
06
North America remains Ubisoft's dominant market, accounting for 52% of quarterly sales, followed by Europe at 40%.See it on page 4

Summary

Ubisoft’s third-quarter fiscal 2013-14 sales report outlines the company’s financial performance during a period of significant industry transition. The primary objective is to communicate quarterly results, update full-year financial targets, and provide insight into the impact of the PlayStation 4 and Xbox One console launches. The company reported quarterly sales of €520 million, a 35.2% decline compared to the same period in the previous fiscal year, reflecting the broader market shift between console generations.

Key performance drivers included the strong reception of Assassin’s Creed IV Black Flag, which achieved 10 million sell-in units, and the continued success of the Just Dance franchise, which moved 6 million units. Conversely, Rocksmith 2014 underperformed relative to expectations. While digital sales contracted by 4% for the quarter, the first nine months of the fiscal year showed a 12% increase in digital revenue, supported by free-to-play titles and downloadable content. Geographically, North America remained the company's largest market, accounting for 52% of quarterly sales, followed by Europe at 40%.

Looking ahead, Ubisoft has adjusted its full-year 2013-14 sales target to approximately €1,000 million, with an anticipated non-IFRS operating loss of €65 million. Despite the current market volatility, the company maintains a positive outlook for fiscal 2014-15, projecting an operating income of at least €150 million. This optimism is anchored by a robust upcoming release schedule, including titles such as The Crew and Watch Dogs, and the expectation that the maturing console market will provide a more favorable environment for growth.