Ubisoft posted a new financial report for the full fiscal year 2015-2016, and the PS4 was still at the top of the company’s software sales, followed by Xbox One and PC. Interestingly, both consoles have gained strong momentum from the past fiscal year, at the expense of the PS3/Xbox 360 generation and PC as well.
On top of that, we also get a by-region breakdown, with Europe and North America sharing a very similar share of the publisher’s sales, even if North America increased in share since last year.
Overall financial results are as follows:
The press release included a statement by CEO Yves Guillemot, describing the current situation of the company and talking about the performance of Tom Clancy’s The Division, that currently has 9.5 million registered users:
“We ended fiscal 2015-16 on a very positive note, having effectively executed our plan: the performances delivered by The Division and Far Cry Primal exceeded our expectations, we continued our major come-back in the multiplayer segment and we saw a significant increase in player engagement levels for our games.
The Division currently has 9.5 million registered users, and active players are playing the game an average of three hours1 per day. These successes resulted in our digital segment outperforming our targets for the fiscal year and positively impacted our profitability.” Guillemot went on to say “Since our initial public offering 20 years ago, we have built one of the world’s leading players in the entertainment industry and have created significant value for our shareholders, with a 14-fold increase in the Company’s share price.
Over the past few years, we have considerably strengthened our portfolio of owned brands. For example, we have tripled the audience for Far Cry, doubled it for Rainbow Six, and launched The Division and Watch Dogs which were the first and third-largest releases ever for a new video game brand. In parallel, we have increased the sales weighting of our digital segment to 32%, primarily through organic growth. Thanks to these repeated successes, we have demonstrated our capacity to effectively implement and execute our strategic plan.
As a result, we are now entering a new phase of expansion and strong value creation for our shareholders, with 2018-19 operating margin targeted to reach 20% and free cash flow expected to come in at around €300 million.”
Incidentally, during the following conference call, CFO Alain Martinez explained that the 9.5 million figure for Tom Clancy’s The Division is not exactly the sell-through number, as some user may have multiple accounts.
The company also posted its financial outlook for the current quarter and fiscal year, mentioning that there will be a total of five AAA games released in the current fiscal year, ending on March 31st, 2017:
Sales for the first quarter of 2016-17
The Group expects first-quarter 2016-17 sales to amount to approximately €125.0 million, up 29% on first-quarter 2015-16.
Ubisoft is standing by its targets for full-year 2016-17, namely sales of around €1,700 million, non-IFRS operating income of approximately €230 million and solid free cash flow generation. Sales growth for the fiscal year will be driven by:
- A rise in revenues from new games releases, with a larger number of AAA title releases (five compared with four),
- Further strong growth for the back-catalog which is expected to account for around 30% of total sales, fueled by the success of Tom Clancy’s The Division, Far Cry Primal and Tom Clancy’s Rainbow Six Siege,
- Another sharp increase in recurring digital revenues, with the digital segment representing over 35% of total sales.
Last but not least, we get a breakdown of the upcoming releases for this quarter (ending on June 30th), including three expansions for The Division: