Ubisoft Third-Quarter 2017-18 Sales Results

Key insights

6 takeaways

01
Ubisoft reported Q3 2017-18 sales of €725.0 million, representing a 36.8% year-on-year increase that surpassed internal targets.See it on page 2
02
Digital revenue grew 75.0% to €670.3 million over the first nine months of the fiscal year, now accounting for 56.3% of total sales.See it on page 1
03
Player Recurring Investment, including DLC and subscriptions, rose by 87.4%, while back-catalogue sales increased by 31.5%.See it on page 1
04
The company successfully completed a €500 million bond issuance to extend its debt maturity profile and support future growth strategies.See it on page 3
05
North America remains the company's largest market at 47% of sales, and Ubisoft has established itself as the leading third-party publisher on the Nintendo Switch.See it on page 4
06
Management projects that digital distribution will account for approximately 60% of total sales by the end of the 2018-19 fiscal year.See it on page 3

Summary

Ubisoft’s third-quarter sales results for the 2017-18 fiscal year demonstrate significant financial growth and a successful transition toward a more recurring, digital-first business model. The company reported quarterly sales of €725.0 million, a 36.8% year-on-year increase that exceeded both original and revised internal targets. This performance was driven by strong execution across major franchises, including Assassin’s Creed Origins, Tom Clancy’s Rainbow Six Siege, and Ghost Recon Wildlands, alongside a notable expansion in the mobile sector through a strategic partnership with Tencent.

The company’s digital transformation remains a primary driver of its current financial trajectory. Over the first nine months of the fiscal year, digital revenue surged 75.0% to €670.3 million, now accounting for 56.3% of total sales. Player Recurring Investment—comprising DLC, season passes, and subscriptions—grew by 87.4%, signaling increased long-term engagement with live-service titles. Furthermore, back-catalogue sales rose by 31.5%, reinforcing the stability of the company’s recurring revenue profile. Geographically, North America remains the largest market, contributing 47% of sales, while the Nintendo Switch has emerged as a key platform, establishing Ubisoft as the console’s leading third-party publisher.

Looking ahead, the company has reaffirmed its financial targets for the full 2017-18 and 2018-19 fiscal years. Future growth strategies prioritize high-quality blockbuster releases, continued investment in live operations to maintain community engagement, and a shift toward digital distribution, which is expected to represent approximately 60% of total sales by the end of the 2018-19 period. To support these objectives and optimize its capital structure, the company successfully completed a €500 million bond issuance, effectively extending its debt maturity profile.