Ubisoft Reports Third-Quarter 2015-16 Sales

Key insights

6 takeaways

01
Ubisoft is pausing the annual release cycle of the Assassin's Creed franchise to focus on creative revitalization.See it on page 1
02
The company revised its full-year 2015-16 sales target to €1,360 million and set a fiscal 2016-17 sales target of €1,700 million.See it on page 2
03
Digital revenue grew to represent 27% of total sales for the first nine months of fiscal 2015-16, while back-catalog sales increased by 42.6%.See it on page 2
04
Third-quarter sales reached €561.8 million, missing the company's internal target of €600 million.See it on page 2
05
Tom Clancy's Rainbow Six Siege emerged as a primary growth driver, validating the company's strategic shift toward multiplayer experiences and live services.See it on page 1
06
Future growth will rely on a portfolio including The Division, For Honor, and Ghost Recon Wildlands to establish more stable, recurring revenue streams.See it on page 1

Summary

Ubisoft’s third-quarter fiscal 2015-16 results highlight a strategic pivot toward long-term player engagement and digital revenue growth. While third-quarter sales reached €561.8 million, falling short of the €600 million target, the company reported significant progress in its digital segment, which grew to represent 27% of total revenue for the first nine months of the fiscal year. Back-catalog sales also saw a substantial increase of 42.6% during this period, signaling the success of the company’s efforts to maintain active player bases for its existing titles.

The company’s performance was characterized by a mixed retail landscape. Although the launch of Assassin's Creed Syndicate was slower than anticipated due to intense market competition, the title achieved high player engagement. Conversely, Tom Clancy's Rainbow Six Siege emerged as a key driver of success, demonstrating the viability of the company’s focus on multiplayer experiences. Consequently, Ubisoft has revised its full-year 2015-16 sales target to approximately €1,360 million, with a non-IFRS operating income of €150 million.

Looking ahead to fiscal 2016-17, Ubisoft has set a sales target of €1,700 million and an operating income of €230 million. A central component of this forward-looking strategy is the decision to pause the annual release cycle of the Assassin's Creed franchise to allow for creative revitalization. The company plans to rely on a robust portfolio of new and existing brands, including The Division, For Honor, and Ghost Recon Wildlands, to drive growth. By prioritizing digital live services and recurring revenue streams, the company aims to establish a more stable and profitable financial profile across its global operations.