Ubisoft surpasses expectations, thanks to spending regular players

On the twelve-month period ending at the end of march, the turnover of the group of brothers Guillemot has increased from 18.6% to 1.73 billion euros, a level higher than the consensus of analysts surveyed by the provider of financial information, Factset, who had forecast, on average, on 1.66 billion euros. “We exceeded our financial targets with new records in terms of sales, income +digital+ of +back catalog+ (back catalogue ED) and profitability,” said the group CEO, Yves Guillemot, was quoted in a press release.

The leader explains the good performance of the publisher by “the new records of audience and e-sports and commitment to Rainbow Six Siege, the successful launch of Far Cry 5, the continued strong performance of Assassin’s Creed Origins, Mario + Rabbids Kingdom Battle.” The expenses of the players within the games (the”investment recurring players”, PRI) are in a very strong increase, from 58.7%, and now represent 28% of overall group sales.

“The PRI has been the main engine of our growth,” said the group’s chief financial officer, Alain Martinez, during a press conference call. These expenses support the growth of sales in digital, which now represents 58% of the total sales of the group, allowing Ubisoft to have incomes less volatile, a function of new game releases.

The share jumped by almost 6%

For the current fiscal year, Ubisoft expects a turnover of around 2 billion euros, with an operating profit confirmed to be approximately 440 million euro, while gross operating surplus is expected to around 300 million euros.

The publisher also announces the postponement of the game’s Skull & Bones in the fiscal year 2019/20, reducing from four to three its launches anticipated games to more big budget (AAA), for an expected total of 19 million units, from 23 million expected initially.

Action Ubisoft jumped nearly 6% Friday morning at the Paris stock Exchange, after the publication of an annual net income increase of nearly 30% for its non-calendar fiscal year 2017/18. Has 10H04 (08H04 GMT), the title was 5,94% 89,58 euros in a market down 0.25%.

(with AFP)

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