Q1-2016: Ubisoft: Rest of the world, PC and other platform games share grows, as sales drop 73 percent

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BENGALURU: Ubisoft sales for the first quarter of fiscal 2015-16 (Q1-2016, current quarter) came to € 96.6 million, down 73.2 per cent (75.6 percent at constant exchange rates) compared to € 360.1 million for Q1-2015 which saw the release of Watch­_Dogs ,while QoQ sales declined 43.1 per cent as compared to the € 169.9 million in Q4-2015. Digital segment revenues totalled € 54.1 million and represented 56.0 per cent of total sales versus 23.2 per cent the prior year.

Company speak

Ubisoft CEO Yves Guillemot said, “E3 2015 confirmed that the video games industry is in excellent shape. Gamers’ immense enthusiasm for the games presented at the show promises to maintain the current strong growth dynamic in the PC and console market. Ubisoft presented its strongest line-up ever, garnering very positive gamer feedback for our franchises’ latest opuses, including Assassin’s Creed Syndicate, Ghost Recon Wildlands and Rainbow Six Siege, as well as for our new brands For Honor and The Division. Fans told us that they particularly appreciated that most of our games could be played hands-on at our booth. E3 also was an opportunity to showcase our advances in multiplayer games, which should have a favorable impact on our digital revenues growth and on our profitability.”

The company says that first-quarter 2016 sales figure was higher than the target of around € 80 million announced when Ubisoft released its fiscal 2014-15 results, due to a strong 59.3 per cent increase in back-catalogue sales to € 91.6 million, led in particular by a better-than-expected performance by Assassin’s Creed Unity and sustained demand for Far Cry 4, The Crew and Watch_Dogs.

Sales by geography

Share of sales from rest of the world increased to 20 per cent in the current quarter as compared to the 12 per cent in the corresponding year ago quarter and 15 per cent in the immediate trailing quarter. Share of sales from North America declined 37 per cent in Q1-2016 as compared to 44 per cent in Q1-2015 and 40 per cent in Q4-2015. Europe’s share sales also declined by 100 basis points to 43 per cent in Q1-2015 as compared to 44 per cent in Q1-2015 and by 2 per cent from the 45 per cent reported for the immediate trailing quarter.

Sales by Platform

PC games

PC games increased its share of sales to 23 per cent in Q1-2016 as compared to 14 per cent in the corresponding year ago quarter. PC games share of sale was the same at 23 per cent in Q4-2015.

Other (Mobile, ancillaries) games

This is another Platform that has witnessed a larger contribution to Ubisoft’s overall sales. Other’s platform games sales contributed 14 per cent to the company’s overall sales as compared to the 1 per cent in Q1-2015 and 12 per cent in Q4-2015.

Nintendo games

Wii and Wii U games share to sales improved to 3 per cent from 1 per cent in Q1-2015. For Q4-2016, the individual breakup of share of sales by these two Nintendo platforms was Wii – 4 per cent and Wii U was 1 per cent.

PlayStation games

Though sales of PlayStation (PS) games contribution is still the biggest, their ratio in Ubisoft’s overall sales pie has dropped considerably in the current quarter when compared to Q1-2015, but was significantly higher when compared to the immediate trailing quarter. PS4 games contribution to Ubisoft’s  sales however showed a QoQ improvement in Q1-2016.

Sales of Play Station games contributed to 38 per cent of total sales in Q1-2016 as compared to 53 per cent in Q1-2015 and 31 per cent in Q4-2015.

PS3 games sales declined to 11 per cent of overall sales in the current quarter as compared to the 17 per cent in Q1-2015. Sales PS3 games were 8 per cent of overall sales in Q4-2015. Sales of PS4 games contributed to 27 per cent of Ubisoft Q1-2016 sales, as compared to 36 percent in Q1-2015 and 23 percent in Q4-2015.

Xbox games

Contribution by sales of Xbox games to Ubisoft’s overall revenues has also dropped YoY as well as QoQ in Q1-2016. Xbox games sales contribution to Ubisoft’s overall sales dropped to 22 per cent in the current quarter as compared to 31 per cent in the corresponding year ago quarter and 29 per cent in the immediate trailing quarter.

Both Xbox One and Xbox 360 games contributed 11 per cent each to Ubisoft’s overall sales in Q1-2016. Xbox 306’s contribution to Ubisoft’s overall sales in Q1-2015 and Q4-2015 was 14 per cent and 10 per cent respectively. Xbox One’s contribution to Ubisoft’s overall sales in Q1-2015 and Q4-2015 was 17 per cent and 19 per cent respectively.

Releases Scheduled for Q2-2016 

Packaged goods

Might & Magic Heroes VII for PC

Digital

Rabbids Appisodes for Android, iOS and Toy Soldiers War Chest for PC, PS4, Xbox One

Outlook

Second-quarter 2015-16 sales

The Group expects second-quarter 2015-16 sales to come in at approximately €90 million.

Full-Year 2015-16

Ubisoft confirms its previously announced targets for full-year 2015-16, with sales expected to be stable compared with full-year 2014-15 and non-IFRS operating income projected to represent at least €200 million.

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