Ubisoft Updates Financial Targets and Release Schedule for 2019-20: Communication of Initial Targets for 2020-21

Key insights

6 takeaways

01
Ubisoft slashed its 2019-20 net bookings target from €2,185 million to €1,450 million and reduced non-IFRS operating income projections from €480 million to a range of €20 million to €50 million.See it on page 1
02
The company delayed the releases of Watch_Dogs Legion, Gods & Monsters, and Rainbow Six Quarantine to the 2020-21 fiscal year to allow for additional development time and gameplay refinement.See it on page 2
03
Management attributed the financial downturn to the underperformance of Ghost Recon Breakpoint and The Division 2, noting difficulties in maintaining momentum for live-service sequels and a lack of product differentiation.See it on page 2
04
Ubisoft set ambitious initial targets for 2020-21, projecting €2,600 million in net bookings and €600 million in non-IFRS operating income, supported by a planned lineup of five AAA titles.See it on page 1
05
Despite recent setbacks, the company’s back-catalog remains a stable revenue driver, with Rainbow Six Siege and Assassin's Creed Odyssey continuing to exceed performance expectations.See it on page 2
06
Future growth strategy focuses on expanding into mobile markets, Asian territories, and esports, while leveraging the company's portfolio for streaming and multi-platform environments.See it on page 2

Summary

Ubisoft has significantly revised its financial outlook for the 2019-20 fiscal year, citing disappointing commercial performance from recent AAA releases and a strategic decision to delay several high-profile titles. The company lowered its net bookings target for 2019-20 from approximately €2,185 million to €1,450 million, while non-IFRS operating income projections were reduced from €480 million to a range of €20 million to €50 million. This downward adjustment is primarily attributed to the underperformance of Ghost Recon Breakpoint and The Division 2, alongside the postponement of Gods & Monsters, Rainbow Six Quarantine, and Watch_Dogs Legion.

The decision to delay these three titles into the 2020-21 fiscal year is intended to provide development teams with additional time to refine gameplay innovations and ensure optimal player experiences. Management identified three core factors contributing to recent struggles: the difficulty of maintaining momentum for sequels to live-service games, the necessity for flawless implementation of new gameplay mechanics, and a lack of sufficient differentiation in recent product offerings. Despite these setbacks, the company maintains a strong back-catalog, with titles such as Rainbow Six Siege and Assassin's Creed Odyssey continuing to exceed performance expectations.

Looking ahead, the company has established ambitious initial targets for the 2020-21 fiscal year, projecting net bookings of approximately €2,600 million and non-IFRS operating income of €600 million. This optimism is anchored by a planned lineup of five AAA games and a broader strategy to capitalize on industry growth through expansion into mobile markets, Asian territories, and esports. By prioritizing long-term brand value over immediate release schedules, the company aims to stabilize its development model and leverage its portfolio across emerging streaming and multi-platform environments.