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Ubisoft reports first-quarter 2018-19 sales

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Ubisoft reports first-quarter 2018-19 sales
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A solid performance, led by sharp back-catalog growth and continued strong momentum for digitalales : 400.0 M€

Ubisoft released its sales figures for the first quarter of fiscal 2018-19, i.e. the three months ending on June 30, 2018.
Yves Guillemot, Co-Founder and Chief Executive Officer, stated “We had a record first quarter, which exceeded our expectations. This performance was fueled by steady growth for our back-catalog and an excellent momentum for PRI, once again confirming the increasingly recurring profile of our business and the ever-greater success of our digital transformation.
Our teams are continuing to deliver on our strategic plan of ramping up our franchises.

Assassin’s Creed Odyssey and The Division 2 were very well received at E3, confirming their full potential in a highly competitive environment. Our new creation, Skull & Bones, also made a very good impression due to its innovative gameplay combining naval battles with a multi-player experience.

Thanks to its numerous growth drivers, brisk digital trajectory and close-knit relations with its gamer communities, as well as the fact that it directly owns its brands, Ubisoft is ideally positioned to meet its targets for full-year 2018-19 and continue to grow and increase its profitability over the long term.”

The Group applied the IFRS 15 new revenue norm for the first time in its quarterly financial statements for the three months ended June 30, 2018. As a result of applying this standard, a portion of revenue generated from games is now recognized after the initial delivery date of the game concerned. As the Group has elected to use the cumulative catch-up method for applying IFRS 15, the revenue figure for the first quarter of the previous fiscal year have not been restated.

Sales and net bookings

In M€ Q1 2018-19
Sales 400.0
Deferred services -18.5
Net bookings 381.5
Sales for the first quarter of fiscal 2018-19 amounted to €400.0 million (415.4 million at constant exchange rates[2]).

First-quarter 2018-19 net bookings came to €381.5 million, representing an increase of 88.8% (+ 96.1% at constant exchange rates2) on the €202.1 million reported for first-quarter 2017-18.

Outlook

Second-quarter 2018-19 sales and net bookings

The Group expects second-quarter 2018-19 sales of between €345.0 million and €355.0 million and net bookings to amount to around €345.0 million (versus €264.2 million for the second quarter of 2017-18). This year-on-year expected increase is due to the back-catalog momentum and initial in-stores shipments for Assassin’s Creed® Odyssey.

Full-year 2018-19

Ubisoft is standing by its targets of:

Sales of around €2,000.0 million

Net bookings of around €2,050.0 million.

Non-IFRS operating income (based on net bookings) of around €440.0 million.

Free cash flow of around €300.0 million.

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 05/17/18 and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on June 06, 2018 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, Far Cry, For Honor, Just Dance, Watch_Dogs & Tom Clancy’s video game series, including Ghost Recon, Rainbow Six and The Division. 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 2017-18 fiscal year Ubisoft generated sales of €1,732 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

 

Definitions of Non-IFRS Financial Indicators

Net Bookings: corresponds to the prior sales standard.

Non-IFRS operating income corresponds to operating income less the following items:

Stock-based compensation expense arising on free share plans, group savings plans and stock options.
Depreciation of acquired intangible assets with indefinite useful lives.
Non-operating income and expenses resulting from restructuring operations within the Group.

Non-IFRS operating margin corresponds to the ratio between the Non-IFRS operating income and sales. This ratio reflects the economic performance.

Free cash flow corresponds to cash flows from operating activities after cash inflows/outflows arising on the disposal/acquisition of other intangible assets and property, plant and equipment.

 

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BOS agrees with KV’s/KO’s advertising assessment of “Trisskrapet” in TV4

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The Swedish Trade Association for Online Gambling (BOS) agrees with the Swedish Consumer Agency’s (KV) and the Consumer Ombudsman’s (KO) assessment that the daily scratch card commercial “Trisskrapet” in TV4 is an advertising feature, and thus not an editorial feature. BOS welcomes that KO is now ending that part of the process.

If Svenska Spel does not stop the advertising elements, BOS looks forward to KV following up on its earlier call to Svenska Spel to comply with the provisions on advertising identification and broadcaster declaration in section 9 of the Marketing Act and the information obligation in ch. 15. Section 3 of the Gambling Act with information on the 18-year-old age limit and where to turn in case of gambling problems.

– The Swedish gambling market must be characterized by a high level of consumer protection. A cornerstone of good consumer protection is that people are clear about what constitutes gambling advertising, i.e. that they are not tricked into thinking that an advertising feature would instead be an editorial feature. The daily “Trisskrapet” on TV4 has been anything but clear on that point, and we welcome that KO now finally establishes that the features constitute advertising and nothing else, says Gustaf Hoffstedt.

– Now it remains for Svenska Spel to introduce the mandatory consumer protection labelling of Trisskrapet. Since the company has not shown any excessive eagerness to introduce this voluntarily, KO should ensure that this happens as soon as possible. Every day and every “Trisskrapet” that does not contain the mandatory consumer protection label is another lost day for a safe and secure gambling market, Gustaf Hoffstedt concludes.

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Expanse Studios Launches in Bulgaria with Inbet

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Expanse Studios, a leader in online gaming innovation, has secured a Bulgarian iGaming license and is now live on Inbet’s website. This expansion brings Expanse Studios’ popular game offerings including turn-based strategies gamified for iGaming, classic slots, traditional card games and the highly-acclaimed ones like Titan Roulette, Clown Fever Deluxe, Wild Icy Fruits, White Wild Whale and Joker Poker to Bulgarian players.

Diverse Gaming Portfolio Now Available to Bulgarian Players

With the Bulgarian market entry, Expanse Studios introduces a versatile gaming experience to Inbet’s platform. The offerings include a dynamic range of games tailored to diverse player preferences:

  • Turn-based strategy games: Leveraging gamification, these games transform traditional strategy gameplay into engaging iGaming experiences, suitable for both novice and experienced players.
  • Classic slots: Players will enjoy a variety of themed slots that combine traditional gameplay with modern graphics and sound.
  • Traditional card games: A selection of popular card games offer something for every card game enthusiast.
  • Titan Roulette: This standout feature, known for its immersive experience and innovative design, continues to be a favorite among roulette players.

Commitment to Quality and Compliance

Expanse Studios not only cultivates a diverse gaming library but also adheres to stringent regulatory standards to ensure a secure and fair gaming environment. The acquisition of the Bulgarian iGaming license is a testament to Expanse Studios’ commitment to compliance and excellence in the gaming industry.

The partnership between Expanse Studios and Inbet marks a significant milestone in Expanse Studios’ expansion efforts. By combining Expanse Studios’ innovative gaming solutions with Inbet’s established market presence, both entities are set to offer a superior gaming experience to players in Bulgaria and potentially beyond. As Expanse Studios continues to develop and release new games monthly, Bulgarian players can look forward to a continually evolving and enriching gaming landscape.

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Conferences in Europe

CasinoBeats Summit 2024: Providing the Tools to Balance Innovation and Regulation in the Digital Age

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As the industry seeks optimal methods to responsibly integrate innovative technology, the upcoming CasinoBeats Summit will provide delegates with an exploration of the latest emerging technologies, regulatory frameworks and future trends to ensure a safe yet immersive gaming experience for players.

The Industry and Leadership track will take place across both core days of the CasinoBeats Summit, May 22 to 23 at the InterContinental Malta. Panel sessions will delve into key topics such as global gaming regulations, the evolving digital payment landscape and an in-depth exploration of the world of M&A.

The panel entitled Responsible Gambling in the Digital Age will delve into the latest responsible gambling initiatives influencing the digital landscape. Expert speakers Pedro Romero (RG Consultant and psychologist, University of Gibraltar), Matthew Curtis (Head of Responsible Gaming, L&L), Georgia Wise (Head of Responsible Gaming, PlayNorth), Eduards Jakubovs (Head of Responsible Gaming, Betsson) and panel moderator Maris Catania (Senior SG Consultant, SG: Certified) will analyse the impact of landmark regulatory guidelines such as the 3.4.3 regulation on remote customer interaction and the United Kingdom’s ‘white paper’ as well as discuss the latest distinctions between regulated, grey and black markets.

The Industry Trends and Future Predictions panel will look at the future of the casino sector, examining upcoming industry trends and their potential impact. Industry leaders Itai Zak (Executive Director, Digicode, and former/ex-Chief Executive Officer, SBTech), Matthew D’Emanuele (Chief Executive Officer, Yolo Entertainment), Alexander Martin (Chief Executive Officer, SKS365), Inesa Glazaite (Chief Commercial Officer, iGaming Platform), Dmitry Starostenkov (Chief Executive Officer, EvenBet) alongside panel moderator Martyn Elliott (Project Director, SBC Media) will offer insights into key emerging markets, innovative game formats and strategies to effectively cater to evolving player needs.

Commencing the second day is the panel entitled The Evolving Landscape of Gaming Sector Payments, which will explore the current state of the industry’s payment sector. Expert speakers Sean Spiteri (Head of Payment Solutions, PressEnter), Enrico Giancaterina (Managing Director, Funtech) and Ian Perrygrove (Chief Risk Officer, Kwiff) will discuss the current payment innovations driven by the casino sector, analyse the future of digital payment methods and the potential risks of such rapid innovations.

The Navigating the Future: Global Gaming Regulations panel will explore strategies to effectively address the challenges posed by current and future global regulations. Regulator representatives Aideen Shortt, (Advisor to the Minister, Curacao), Andrew Lyman (Gambling Commissioner and Executive Director, Gibraltar), Andrew Rhodes (Chief Executive, Gambling Commission) and Brandon Debattista (Deputy Chief Regulatory Officer, Malta Gaming Authority) will provide insights into their respective markets whilst assessing the possibility of a unified global regulatory standard and the importance of cross-market collaboration.

Additionally, track attendees will have the opportunity to garner insights into the world of acquisition and investment during an exclusive IMGL-led masterclass, Acquisition Strategy: Gearing up for Investment, which is set to take place on Thursday, May 23, the second core day of the event.

For groups of three or more, you can purchase the Group Pass Ticket and gain access to all three days of the CasinoBeats Summit for the discounted price of €400 per person (a saving of €200 per ticket). Additionally, operators and affiliates can apply for a free pass to the event.

You can keep up-to-date with the latest news, speakers and exhibitor additions and conference content by subscribing to the bi-weekly CasinoBeats Summit LinkedIn newsletter.

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