UBISOFT REPORTS THIRD-QUARTER 2017-18 sales
Company records very solid performance for the quarter,
with great execution across the board
Q3 2017-18: STRONG RISE IN SALES, outstripping targets
TARGETS[4] FOR full-year 2017-18 AND 2018-19 CONFIRMED
Paris, February 12, 2018 - Today, Ubisoft released its sales figures for the third fiscal quarter of 2017-18, ended December 31, 2017.
Yves Guillemot, Co-Founder and Chief Executive Officer, stated: "Our very strong third-quarter performance highlights two areas in which we have made major strides. First, our games' live operations are making steady progress. This has fueled momentum for digital and back catalogue, which both hit record highs this quarter. Second, the increasingly recurring profile of our business has had a very positive impact on our new releases. By taking additional time to develop our games, we have been able to deliver three top-quality titles since August, including the grand return of Assassin's Creed."
"These successes demonstrate that our differentiating strategy of combining long-term investment in our talented teams and our multi-studios collaboration model is paying off. This strategy enables us to deliver high-quality blockbusters while keeping our communities engaged through regular major updates. As a result, Ubisoft is perfectly positioned to reach its targets for fiscal 2017-18 and 2018-19."
Sales
Sales for the third quarter of fiscal 2017-18 amounted to €725.0 million, outstripping the target of around €700.0 million that was recently revised upwards from an original target of around €630.0 million, and up 36.8% (41.0% at constant exchange rates) compared with €529.9 million for third-quarter 2016-17. For the first nine months of fiscal 2017-18, sales totaled €1,191.2 million, up 46.8% (50.1% at constant exchange rates) on the €811.3 million recorded in the corresponding prior-year period.
Outlook
Full-year 2017-18
Ubisoft is standing by its targets[5] for full-year 2017-18, namely sales of around €1,640.0 million and non-IFRS operating income of approximately €270.0 million.
Sales for the fourth quarter of 2017-18
Ubisoft expects fourth-quarter 2017-18 sales to come in at approximately €449.0 million, compared with €648.6 million for the same period of 2016-17 (which saw the releases of Ghost Recon Wildlands and For HonorTM). Fourth-quarter 2017 will see the following main releases:
Targets[6] for 2018-19
Ubisoft is standing by its targets for fiscal 2018-19, namely sales of around €2,100.0 million, non-IFRS operating income of around €440.0 million and free cash flow of approximately €300.0 million. As announced on December 7, 2017 when Ubisoft updated its targets for fiscal 2017-18, the company is updating today the assumptions underlying its revenue target for fiscal 2018-19:
Recent significant events
Partnership between Tencent and Ketchapp: Ubisoft and Tencent have announced a strategic partnership to bring a selection of Ketchapp games to Tencent's newly-launched mobile Weixin mini-game application. Weixin is WeChat's mirror application for Mainland China users, with 980 million active user accounts (MAU).
€500 million bond issue: Ubisoft has successfully placed €500 million worth of five-year bonds maturing in January 2023 and carrying an annual coupon of 1.289%. The order book reached over €2.2 billion and was more than 4.4 times oversubscribed. The net proceeds from the issue will be used for general corporate purposes, including to refinance certain existing debt. The bond offering has enabled Ubisoft to extend its debt maturity profile at a more attractive cost compared with existing financial instruments, and to further diversify its debt investor base.
Contact
Investor Relations Jean-Benoît Roquette SVP Investor Relations + 33 1 48 18 52 39 Jean-benoit.roquette@ubisoft.com |
Press Relations
Michael Burk
Senior Director of Corporate Public Relations
+ 33 1 48 18 24 03
michael.burk@ubisoft.com
Disclaimer
This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly compared with the actual results that will be published. The estimated financial data have been presented and approved by the Board of Directors on 05/16/17 and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on July 21, 2017 with the French Financial Markets Authority (l'Autorité des Marchés Financiers)).
About Ubisoft
Ubisoft is a leading creator, publisher and distributor of interactive entertainment and services, with a rich portfolio of world-renowned brands, including Assassin's Creed, Just Dance, Watch_Dogs, Tom Clancy's video game series, Rayman and Far Cry. The teams throughout Ubisoft's worldwide network of studios and business offices are committed to delivering original and memorable gaming experiences across all popular platforms, including consoles, mobile phones, tablets and PCs. For the 2016-17 fiscal year Ubisoft generated sales of €1,460 million. To learn more, please visit www.ubisoftgroup.com
© 2018 Ubisoft Entertainment. All Rights Reserved. Ubisoft and the Ubisoft logo are registered trademarks in the US and/or other countries.
APPENDICES
Breakdown of sales by geographic region | |||||
% Sales | % Sales | % Sales | % Sales | ||
Q3 2017/18 | Q3 2016/17 | 9 months 2017/18 | 9 months 2016/17 | ||
Europe | 39% | 42% | 37% | 40% | |
North America | 47% | 44% | 47% | 46% | |
Rest of the World | 14% | 14% | 16% | 14% | |
TOTAL | 100% | 100% | 100% | 100% | |
| |||||
Breakdown of sales by platform | |||||
Q3 2017/18 | Q3 2016/17 | 9 months 2017/18 | 9 months 2016/17 | ||
PLAYSTATION®4 | 44% | 46% | 41% | 42% | |
XBOX One | 25% | 26% | 24% | 25% | |
PC | 15% | 13% | 16% | 16% | |
NINTENDO SWITCHTM | 6% | - | 8% | - | |
XBOX 360, PS®3, Wii(TM), Wii U(TM) | 4% | 10% | 3% | 9% | |
Others* | 6% | 5% | 8% | 8% | |
TOTAL | 100% | 100% | 100% | 100% | |
*Mobile, ancillaries. | |||||
Title release schedule 4th quarter
(January - March 2018)
PACKAGED & DIGITAL | ||||
ASSASSIN'S CREED® ROGUE REMASTERED | PlayStation®4, Xbox One | |||
FAR CRY® 5 | PC, PlayStation®4, Xbox One | |||
Digital ONLY | |||
DISCOVERY TOUR BY ASSASSIN'S CREED® - ANCIENT EGYPT | PC, PlayStation®4, Xbox One | ||
ASSASSIN'S CREED® ORIGINS - THE CURSE OF THE PHARAOHS | PC, PlayStation®4, Xbox One | ||
ASSASSIN'S CREED® ORIGINS - THE HIDDEN ONES | PC, PlayStation®4, Xbox One | ||
FOR HONOR® SEASON 5 AGE OF WOLVES | PC, PlayStation®4, Xbox One | ||
SOUTH PARKTM THE FRACTURED BUT WHOLE - FROM DUSK TILL CASA BONITA | PC, PlayStation®4, Xbox One | ||
TOM CLANCY'S RAINBOW SIX® SIEGE OPERATION CHIMERA | PC, PlayStation®4, Xbox One |
[1] Sources NPD, GFK, GSD, internal estimates, in value term, physical & digital sales
[2] Playtime projection over the 1st year, compared with the average for the franchise's other games (excluding AC4 Blackflag)
[3] Player Recurring Investment includes sales of digital items, DLC, season passes, subscriptions and advertising
[4] Targets based on currently-applicable IFRS
[5] Targets based on currently-applicable IFRS
[6] Targets based on currently-applicable IFRS