Ubisoft Reports Third-Quarter 2016-17 Sales

Key insights

6 takeaways

01
Digital revenue reached €383.0 million for the first nine months of the 2016-17 fiscal year, representing 47.2% of total sales compared to 27.0% in the previous year.See it on page 2
02
Player recurring investment—including season passes, subscriptions, and digital items—grew by 140.1% during the nine-month period.See it on page 1
03
Monthly active users increased by 33.1% over the nine-month period, driven by the performance of Tom Clancy’s Rainbow Six Siege and Tom Clancy’s The Division.See it on page 1
04
Ubisoft lowered its full-year sales target to between €1,455 million and €1,495 million due to the delayed release of South Park: The Fractured But Whole and soft Watch_Dogs 2 sales.See it on page 1
05
The company confirmed its full-year non-IFRS operating income target of €230 million to €250 million while raising its operating margin guidance to 15.8%–16.7%.See it on page 2
06
Tom Clancy’s Rainbow Six Siege reached 15 million registered players, while Tom Clancy’s The Division saw a 152.3% increase in daily active users following game updates.See it on page 1

Summary

Ubisoft’s third-quarter 2016-17 financial results demonstrate a successful strategic transition toward a more recurring and profitable business model. Despite a contraction in quarterly sales to €529.9 million—partially attributed to the delayed release of South Park: The Fractured But Whole and a softer-than-expected launch for Watch_Dogs 2—the company is ahead of schedule in its digital transformation. This shift is evidenced by record digital revenue, which reached €383.0 million for the first nine months, accounting for 47.2% of total sales compared to 27.0% in the prior year.

Key performance indicators highlight a significant surge in player engagement, with monthly active users increasing by 33.1% over the nine-month period. Titles such as Tom Clancy’s Rainbow Six Siege and Tom Clancy’s The Division served as primary drivers, with the former reaching 15 million registered players and the latter experiencing a 152.3% jump in daily active users following key updates. This heightened engagement fueled a 140.1% increase in player recurring investment, which includes digital items, season passes, and subscriptions.

Reflecting these structural improvements, the company confirmed its full-year non-IFRS operating income target of €230 million to €250 million while revising its operating margin guidance upward to a range of 15.8% to 16.7%. Although the full-year sales target was lowered to between €1,455 million and €1,495 million, management remains confident in its long-term strategic plan. The company continues to focus on its global portfolio across consoles, PC, and mobile, with upcoming releases and expansions for major franchises like For Honor and Ghost Recon Wildlands intended to sustain momentum through the remainder of the fiscal year.