Today, Ubisoft released its sales and earnings figures for the six months ending September 30, 2015, sales for the first half of the year reached €207.3 million with an excellent showing from major franchises with a 53.1% jump in back-catalog sales to €184.3 million. Digital sales came in at 100.1 million, representing 48.3% of total sales which is increased from last years statement which showed digital sales at 27.8%
Confirmation of targets for full-year 2015-16
Sharp increase in sales expected in the second half thanks to the launch of five major titles – Assassin’s Creed Syndicate, Far Cry Primal, Just Dance 2016, Rainbow Six Siege and The Division, compared with four last year.
Yves Guillemot, Co-Founder and Chief Executive Officer for Ubisoft, stated, “The quality of our back-catalog and the growing digitisation of our business enabled us to deliver a solid performance in the first half of the year, even though – as planned – we did not release any major titles during the period. The fact that more than 80% of our annual sales are expected to be generated in the second half of the year mechanically weighed on our earnings for the first six months.”
He then continued by saying, “The outlook for our industry continues to be very promising, with a return to growth, a healthier competitive environment, and the favourable impact of digital. Against this backdrop, Ubisoft has unique value-creating potential. We are ideally positioned in open-world games, whose market share is increasing. We also own our brands and have the in-house skills and expertise to create them. These two significant characteristics offer our shareholders an unrivalled level of long term visibility and security. In addition, the release of numerous multi-player games such as For Honor, Ghost Recon Wildlands, Rainbow Six Siege and The Division represent a major opportunity to develop players’ engagement and grow our highly-profitable digital segment. And lastly, we are pioneers in leveraging our brands in areas beyond video games, as demonstrated by the agreements we have signed with the most powerful international partners such as Columbia, Fox New Regency, Nickelodeon and Warner.”
Guillemot finished by saying, “We continue developing Ubisoft’s business with the aim of becoming one of the highest-performing groups in the video game industry and a leader in the overall entertainment sector. In doing so, we are offering our shareholders significant value-creation potential for the coming years.”
Non-IFRS income statement and key financial data
|In € millions||H1 2015-16||%||H1 2014-15*||%|
|General and administrative expenses||(51.5)||-24.9%||(44.9)||-9.3%|
|Total SG&A expenses||(162.6)||-78.4%||(172.1)||-35.5%|
|Non-IFRS operating income/(loss)||(107.8)||-52.0%||24.9||5.1%|
|Non-IFRS net income/(loss)||(65.7)||17.5|
|Non-IFRS diluted earnings/(loss) per share (in €)||(0.57)||0.15|
|Cash flows from operating activities**||(334.7)||(19.5)|
|R&D investment expenditure***||(270.6)||(250.0)|
|Net cash/(debt) position||(155.5)||(40.3)|
- Restated to reflect the impact of IFRIC 21
** Based on the consolidated cash flow statement for comparison with other industry players (unreviewed)
*** Including royalties but excluding future commitments
Sales for the first half of 2015-16 came to €207.3 million, down 57.2% (or 60.3% at constant exchange rates) compared with the €484.2 million recorded for first-half 2014-15, which saw the release of Watch Dogs.
Sales in the second quarter of 2015-16 totaled €110.7 million versus €124.1 million in the corresponding prior-year period, representing a decrease of 10.8% (or 16.8% at constant exchange rates). This second-quarter showing was higher than the target of approximately €90.0 million issued when Ubisoft released its sales figures for the first quarter 2015-16.
Ubisoft’s sales performance in first-half 2015-16 reflects the excellent staying power of major franchises (Assassin’s Creed, Far Cry, Just Dance, The Crew and Watch Dogs), which drove up back-catalog sales by 53.1% to €184.3 million not to mention the ever-growing importance of the digital segment, whose revenues amounted to €100.1 million, representing 48.3% of Ubisoft’s total sales for the period versus 27.8% in first-half 2014-15.
Ubisofts Sales Outlook for the third quarter of 2015-16
The third quarter of 2015-16 will see the following main releases:
Assassin’s Creed Syndicate for PC, PLAYSTATION 4 and Xbox One
Just Dance 2016 for PLAYSTATION 3, PLAYSTATION 4, Xbox 360, Xbox One, Wii and Wii U
Rayman Adventures for iOS, Apple TV, Google Play and Amazon
The Crew Wild Run (expansion) for PC, PLAYSTATION 4 and Xbox One
Tom Clancy’s Rainbow Six Siege for PC, PLAYSTATION 4 and Xbox One
Ubisoft expects third-quarter 2015-16 sales to amount to around €600 million, down 26% on the third quarter of 2014-15.