UBISOFT REPORTS THIRD-QUARTER 2021-22 SALES
UBISOFT REPORTS
THIRD-QUARTER
2021-22 SALESRecent
industry news cast a positive light on Ubisoft’s
organic model and asset strengths
Q3 performance in line with
expectations Robust
back-catalog trends
Ubisoft FY22 Q3 Sales
Net bookings for the first nine months
of fiscal 2021-22
|
In €m9
months2021-22 |
Reported change
vs.2020-21 |
% of total net bookings |
|
9 months
2021-22 |
9 months 2020-21 |
IFRS 15 sales |
1,417.2 |
-17.7% |
NA |
NA |
Net bookings |
1,464.3 |
-16.6% |
NA |
NA |
Digital net bookings |
1,087.6 |
-12.6% |
74.3% |
70.8% |
PRI net bookings |
535.7 |
-9.2% |
36.6% |
33.6% |
Back-catalog net bookings |
937.0 |
-7.7% |
64.0% |
57.8% |
-
Third fiscal quarter: Net
bookings of €746.1 million, in line with the target range
-
Back-Catalog up 10% YoY and up 37% vs. Q3 FY20,
together with back-catalog PRI growth, highlighting the strength of
Ubisoft’s recurring business
- Assassin’s
Creed® Valhalla life-to-date net bookings
and PRI were up respectively over 70% and over 80% vs. Assassin’s
Creed Odyssey
- Tom
Clancy’s Rainbow® Six
Siege reached 80 million unique active players
life-to-date, adding 10 million players over the past twelve
months
- Far
Cry® 6 ranked in
the Top
51 of
2021 calendar year new releases and saw playtime per
player and PRI per player
increase respectively
45% and 30% vs. Far Cry
5
- Strong
player reception for Riders
Republic® with playtime per player
and PRI up respectively 60%
and 4x vs.
Steep™
Tom Clancy’s Rainbow
Six Extraction reached 5
million unique active
players, expanding the Rainbow Six
franchise
2021-22 targets
confirmed
Paris,
February 17,
2022 – Today, Ubisoft released
its sales figures for the third quarter of fiscal 2021-22, i.e. the
three months ended December 31, 2021.
Yves Guillemot, Co-Founder and Chief Executive
Officer, said “The beginning of the year offered a striking
confirmation of both the great appeal of the videogame industry and
of the scarcity of high-quality assets. The multiplication of
platforms offers great opportunities for IP creators like Ubisoft.
With our long-term approach and appetite for taking creative risks,
we have developed internally some of the industry’s strongest
proprietary brands as well as the industry’s deepest and most
diversified portfolio. Along the way, we have also built the most
significant production and creative capabilities, cutting-edge
technologies and a strong community of engaged players. This makes
us exceedingly confident about Ubisoft’s future and our capacity to
take full advantage of the industry’s powerful momentum.”
Frédérick Duguet, Chief Financial Officer, said
“Our Q3 performance is once again a demonstration of the robustness
of our model. It is based both on new releases continuously feeding
the deep and diversified stream of revenues from our back-catalog
and on our capacity to leverage the strength of our brands. Q4 will
see very strong growth with very dynamic back-catalog trends,
high-quality new releases, partnerships and significant post-launch
content delivery throughout our brands.”
Yves Guillemot concluded “Looking forward, we
have unmatched production scale and creative firepower. We are
investing in promising new technologies, and we have increasing
access to all distribution venues, platforms, geographies and
business models leveraging the strength of our brands. We could not
be prouder of our teams’ work on what is the richest pipeline of
games in Ubisoft’s history."
An asset-based
model
Value of Ubisoft’s organic model
In a fast-moving IP-based industry with regular
technology, platform and business model breakthroughs, companies
can build a powerful portfolio of assets and strong value by
relying on a range of strategies from organic investments,
partnerships, M&A and licensing to outsourcing. Each approach
requires very large investments. Against this backdrop, the
beginning of the year offered a striking confirmation of both the
great appeal of the videogame industry and of the scarcity of
high-quality assets. It is now very clear that, while the organic
model requires time and iterations, M&A requires unprecedented
levels of investments.
Ubisoft’s assets have never been so
strong at a time when the value of assets has never been so
highOver our 35 years of existence, Ubisoft has developed
the culture, the skills and the organization to create value
organically for our players, talents and shareholders. We believe
the recent industry news has cast a very positive light on what
makes them so valuable. With our long-term approach and appetite
for taking creative risks, we have built some of the strongest
assets in the industry:
- A production
powerhouse, strong of 17,000 talents, structured around the
seasoned Lead & Associate organization of Ubisoft’s global
network of more than 45 studios, which bring together high AAA
production standards with world class creative and engineering
talents.
- The deepest and
most diverse portfolio of proprietary brands in the industry,
including some of the most beloved franchises in videogames:
Assassin’s Creed, Beyond Good & Evil™, Brawlhalla®, The Crew®,
Tom Clancy’s The Division®, Far Cry, For Honor®, Tom Clancy’s Ghost
Recon®, Hungry Shark®, Idle Miner Tycoon™, Immortals Fenyx Rising,
Just Dance®, Mario + Rabbids®, Might & Magic®, Rainbow Six,
Riders Republic and Watch Dogs®.
- Robust proprietary
technologies, from cutting-edge engines (Anvil and Snowdrop) and a
comprehensive online services and distribution platform (Ubisoft
Connect) to i3D.net, Ubisoft’s thriving video game hosting
business. This is in addition to investments in promising new
technologies, including cloud computing, artificial intelligence,
Web3, UGC, voxel and VR.
Benefits of the vertically
integrated organization
Growing in an organic manner requires not only a
different mindset but also a dependable organization, unique in its
structure and strategically vertically integrated. While other
models rely heavily on outsourcing that proves to be increasingly
expensive, we internalize most of our tasks and the several
thousands of jobs that come with them. This offers better control
of the production process and editorial direction at a time when
projects are enormously complex. It also allows for control and
ownership of technological investments and innovations. Finally,
this model leverages our diverse portfolio through synergies and
economies of scale. This is how Ubisoft has been able to deliver
more high-quality content than any other developer in the context
of major challenges related to the global pandemic.
The richest pipeline of games in Ubisoft’s
history
Additionally, our organic investments – to
expand our premium portfolio and bring our established franchises
to a significantly wider audience through free-to-play – require
several thousand talents to work on new technology and game
projects for several years before generating revenues. While it
takes time, this is how, over its history, Ubisoft has delivered
major topline growth and massive shareholder value. As we develop
our own capabilities across platforms for free-to-play, we are also
partnering with Tencent, one of the most prolific developers of
mobile games for core audiences. This partnership is getting closer
to bear meaningful fruits. Equally, our ambitious roadmaps for our
biggest franchises, combined with our investments in Avatar:
Frontiers of Pandora™, Beyond Good and Evil 2, Skull & Bones™,
the Star Wars game and unannounced new IPs are expected to expand
our premium portfolio in a significant way.
The
multiplication
of platforms benefits IP
creators
Looking ahead, the multiplication of platforms
offers great opportunities for IP creators like Ubisoft. As
demonstrated by our recent partnerships, there is a growing need to
bring high-quality content and engaged communities to all
platforms. We have therefore been increasingly valuing the
strengths of our IPs and the depth and diversity of our
portfolio.
Q3 & FY22
commentary
New releases
Players continue to have a great time in Far Cry
6 – which ranked in the top 52 biggest new releases in calendar
2021 – and its post-launch content released over the quarter that
included the Vaas: Insanity DLC, Far Cry 3 Blood Dragon and the
Danny Trejo live event. Playtime per player is now up 45% when
compared with Far Cry 5, with PRI per player up 30%. Far Cry 6 will
continue to deliver exciting new content, including the recent
Rambo live event and upcoming Stranger Things crossover mission.
Riders Republic launched on October 28th with a positive reception
from press and the community, with playtime per player and PRI up
60% and 4x respectively versus Ubisoft Annecy’s previous game
Steep. The launch of the Winter Bash mid-December and the
introduction of the season progression, new sponsors, new gear, and
live events drove acquisition and engagement throughout December.
Just Dance 2022 continues to leverage Switch momentum and delivered
a third consecutive year of strong performance.
Back-catalog
With third quarter back-catalog bookings up 10%
year-on-year and 37% vs. 2 years ago, Ubisoft’s deep portfolio of
games continues to deliver a solid performance, highlighting its
recurrence and resilience. The main drivers were Assassin’s Creed
Valhalla and Odyssey, Brawlhalla, The Crew 2, Far Cry 5, Ghost
Recon Breakpoint, For Honor, Immortals Fenyx Rising, Mario +
Rabbids Kingdom Battle, Rainbow Six Siege and Watch Dogs
Legion.
Assassin’s Creed
Assassin’s Creed Valhalla posted a remarkable
performance in Q3 with overall engagement now up more than 30% when
compared to Assassin’s Creed Odyssey life-to-date. This solid
performance coupled with a stronger post-launch program delivered
impressive life-to-date net bookings and PRI growth of respectively
over 70% and over 80%. On March 10, Ubisoft Sofia, the team behind
Assassin’s Creed Rogue, will be bringing the Dawn of Ragnarök
expansion, Ubisoft’s biggest ever expansion.
Elsewhere in the Assassin’s Creed universe, the
introduction of the Crossover stories in December, bringing new
free content to both Valhalla and Odyssey, drove Odyssey’s
strongest month of the year in terms of engagement. Ubisoft is
bringing today The Ezio Collection to Switch, allowing fans to step
into the legendary footsteps of Master Assassin, Ezio.
Altogether, the Assassin’s Creed brand confirms
its status as a powerful evergreen franchise.
Tom Clancy’s Rainbow Six
Despite intense competition, Rainbow Six Siege
recently passed the 80 million player mark, adding 10 million
players over the past twelve months, and continues to be one of the
biggest multiplayer shooters on the market. In esports, the Six
Invitational, the game’s biggest competition of the year, is in
full swing this week, with the Grand Final scheduled on February 20
and with exciting reveals for Year 7 of the game. Players will have
a lot to look forward with the most ambitious year of new features
and content to date.
Rainbow Six Extraction was released on January
20 and expands the Rainbow Six franchise with a co-op focused
experience IGN calls “one of the boldest games in recent Ubisoft
history.” Extraction has already exceeded 5 million unique players
to date, bringing in new players to the franchise and Siege’s
engaged fans, as well as a significant number of reactivated lapsed
franchise players. An innovative Buddy Pass system that allows
players to let their friends play free for up to two weeks will
continue to fuel the game’s growth along with the title’s inclusion
in Game Pass. There is more to come for Extraction players
post-launch, which will be revealed during the Six Invitational
broadcast tomorrow.
Building the future of
Ubisoft
FY23 game pipeline
In line with Ubisoft’s commitment to
significantly expand its offering, the next fiscal year will
notably include the releases of Avatar: Frontiers of Pandora, Mario
+ Rabbids: Sparks of Hope, Skull & Bones as well as more
exciting games.
Ubisoft continues to progress towards its
ambition to extend its brands’ reach to a significantly larger
audience through free-to-play across all geographies and
platforms.
Splinter Cell remake development
underwayUbisoft announced that the development of a
Splinter Cell® remake is underway. The project is led by the team
at Ubisoft Toronto and will leverage the power of Ubisoft’s
Snowdrop engine. This once again highlights the value that lies
within Ubisoft’s portfolio of iconic brands.
Building a more inclusive and welcoming
workplace
A recent interview with Anika Grant, Ubisoft’s
Chief People Officer, posted on Ubisoft News, outlines the recent
changes implemented at Ubisoft.
Bringing new,
experienced talent to the Editorial department
Ubisoft appointed Fawzi Mesmar as the newest VP
of Editorial, a veteran game designer with more than 18 years of
experience. Most recently the Head of Design at DICE, Fawzi will
work closely with Ubisoft’s worldwide production teams to help
shape the creative vision of Ubisoft’s vast portfolio of games and
franchises. He will also partner with teams across Ubisoft to
ensure they are including diverse perspectives throughout the
production process.
TAFEP concludes
investigation into Ubisoft Singapore
The Tripartite Alliance for Fair and Progressive
Employment Practices (TAFEP) in Singapore completed its
investigation into the Ubisoft Singapore studio and concluded that
the studio has a structured system in place to handle any workplace
misconduct reports, that past reports were handled appropriately
and that salaries are performance-based.
New studio in Sherbrooke
and extension of the
partnership with Québec to 2030
25 years after its first steps in Québec,
Ubisoft announced in November the opening of a fourth video game
development studio in the province, in the city of Sherbrooke, as
well as an extension of its partnership with the province to 2030.
This new studio reaffirms Ubisoft’s commitment as a major economic
player serving the province’s workforce, communities and ecosystems
and it will leverage the city’s hotbed of talent and high-tech
expertise as well as its burgeoning digital ecosystem. This
partnership is yet another example of the virtues of Ubisoft’s Lead
& Associate organization, enabling a regional and international
footprint to attract the best talents all over the world in order
to deliver its organic growth opportunities.
Note The Group presents
indicators which are not prepared strictly in accordance with IFRS
as it considers that they are the best reflection of its operating
and financial performance. The definitions of the non-IFRS
indicators are appended to this press release.
Sales and net bookings
In € millions |
Q3 |
9 months |
2021-22 |
2020-21 |
2021-22 |
2020-21 |
IFRS 15 sales |
665.9 |
965.1 |
1,417.2 |
1,722.1 |
Deferred revenues related to IFRS 15 |
80.2 |
35.9 |
47.1 |
33.6 |
Net bookings |
746.1 |
1,001.0 |
1,464.3 |
1,755.7 |
Digital net bookings |
530.2 |
588.4 |
1,087.6 |
1,243.8 |
PRI net bookings |
187.1 |
218.4 |
535.7 |
589.9 |
Back-catalog net bookings |
340.8 |
308.5 |
937.0 |
1,015.2 |
IFRS 15 sales for the third quarter of 2021-22
came to €665.9 million, down 31.0% (31.8% at constant exchange
rates3) compared with the €965.1 million generated in third-quarter
2020-21.For the first nine months of 2021-22, IFRS 15 sales
amounted to €1,417.2 million, down 17.7% (17.3% at constant
exchange rates) compared with the €1,722.1 million figure for the
first nine months of 2020-21.
Net bookings for third-quarter 2021-22 totaled
€746.1 million, in line with the Group’s target of between €725.0
million and €780.0 million and representing a decrease of 25.5%
(26.1% at constant exchange rates) compared with the €1,001.0
million recorded for the third quarter of 2020-21.For the first
nine months of 2021-22, net bookings stood at €1,464.3 million,
down 16.6% (16.2% at constant exchange rates) on the €1,755.7
million generated in the first nine months of 2020-21.
Outlook
Full-year 2021-22
The Company confirms its Net bookings target of
between flat to slightly down and its non-IFRS operating income
target of between €420 million and €500 million.
Conference call
Ubisoft will hold a conference call today, Thursday February 17,
2021, at 6:15 p.m. Paris time/5:15 p.m. London time/12:15 p.m.
New York time. The conference call can be accessed live and via
replay by clicking on the following link:
https://edge.media-server.com/mmc/p/a3wsxdhw
Contacts
Investor RelationsJean-Benoît
RoquetteSVP Investor Relations+ 33 1 48 18 52
39Jean-benoit.roquette@ubisoft.com
Alexandre Enjalbert
Senior Investor Relations Manager +33 1 48 18 50 78
Alexandre.enjalbert@ubisoft.com |
Press Relations Michael Burk
Senior Director of Corporate Public Relations + 33 1 48 18 24 03
Michael.burk@ubisoft.com
DisclaimerThis press release
may contain estimated financial data, information on future
projects and transactions and future financial results/performance.
Such forward-looking data are provided for information 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 not been reviewed by
the Statutory Auditors. (Additional information is provided in the
most recent Ubisoft Registration Document filed on June 10, 2021,
with the French Financial Markets Authority (l’Autorité des Marchés
Financiers)).
About UbisoftUbisoft is a
creator of worlds, committed to enriching players’ lives with
original and memorable entertainment experiences. Ubisoft’s global
teams create and develop a deep and diverse portfolio of games,
featuring brands such as Assassin’s Creed®, Brawlhalla®, For
Honor®, Far Cry®, Tom Clancy’s Ghost Recon®, Just Dance®, Rabbids®,
Tom Clancy’s Rainbow Six®, The Crew®, Tom Clancy’s The Division®,
and Watch Dogs®. Through Ubisoft Connect, players can enjoy an
ecosystem of services to enhance their gaming experience, get
rewards and connect with friends across platforms. With Ubisoft+,
the subscription service, they can access a growing catalog of more
than 100 Ubisoft games and DLC. For the 2020–21 fiscal year,
Ubisoft generated net bookings of €2,241 million. To learn more,
please visit: www.ubisoftgroup.com.
© 2022 Ubisoft Entertainment. All Rights
Reserved. Ubisoft and the Ubisoft logo are registered trademarks in
the US and/or other countries.
APPENDICES
Definition of non-IFRS financial
indicators
Net bookings corresponds to sales restated for
the services component and including unconditional amounts related
to license or distribution agreements recognized independently of
the achievement of performance obligations.
Player Recurring Investment (PRI) corresponds to
sales of digital items, DLC, season passes, subscriptions and
advertising.
Non-IFRS operating income calculated based on
net bookings corresponds to operating income less the following
items:
- Stock-based compensation expense
arising on free share plans, group savings plans and/or stock
options.
- Depreciation of acquired intangible
assets with indefinite useful lives.
- Non-operating income and expenses
resulting from restructuring operations within the Group.
Breakdown of net bookings by geographic
region
|
Q32021-22 |
Q32020-21 |
9 months
2021-22 |
9 months
2020-21 |
Europe |
39% |
39% |
35% |
36% |
Northern
America |
48% |
48% |
49% |
49% |
Rest of the world |
13% |
13% |
16% |
15% |
TOTAL |
100% |
100% |
100% |
100% |
Breakdown of net bookings by
platform
|
Q32021-22 |
Q32020-21 |
9 months
2021-22 |
9 months
2020-21 |
PLAYSTATION®4 &PLAYSTATION®5* |
29% |
36% |
31% |
34% |
XBOX One™
&XBOX Series X/S™* |
16% |
23% |
18% |
21% |
PC |
29% |
21% |
25% |
23% |
NINTENDO
SWITCH™ |
14% |
13% |
11% |
11% |
MOBILE |
7% |
5% |
9% |
8% |
Others** |
5% |
2% |
6% |
3% |
TOTAL |
100% |
100% |
100% |
100% |
* Backwards compatibility allows users of new-generation
consoles to continue playing games previously purchased on the
older generation of consoles. **Ancillaries, etc.
Title release
schedule4th
quarter (January
– March
2022)
PACKAGED & DIGITAL |
|
|
|
TOM CLANCY’S RAINBOW SIX® EXTRACTION |
AMAZON LUNA, PC, PLAYSTATION®4, PLAYSTATION®5, STADIA, XBOX
ONE, XBOX SERIES X/S |
|
|
|
|
|
|
|
ASSASSIN'S CREED®
VALHALLA: DAWN OF RAGNARÖK |
|
|
|
AMAZON LUNA, PC, PLAYSTATION®4, PLAYSTATION®5, STADIA, XBOX ONE,
XBOX SERIES X/S |
|
THE SETTLERS® |
|
|
|
PC |
|
|
|
|
|
|
|
|
DIGITAL
ONLY |
|
|
ASSASSIN’S CREED®: THE EZIO COLLECTION |
NINTENDO SWITCHTM |
CLASH OF BEASTS™ |
IOS, ANDROID |
FAR CRY® 6: DLC – EPISODE 2: CONTROL |
AMAZON LUNA, PC, PLAYSTATION®4, PLAYSTATION®5, STADIA, XBOX
ONE, XBOX SERIES X/S |
FAR CRY® 6: DLC - EPISODE 3: COLLAPSE |
AMAZON LUNA, PC, PLAYSTATION®4, PLAYSTATION®5, STADIA, XBOX
ONE, XBOX SERIES X/S |
FOR HONOR®: YEAR 6 – SEASON 1 |
PC, PLAYSTATION®4, XBOX ONE |
ODDBALLERS™ |
AMAZON LUNA, PC, PLAYSTATION®4, PLAYSTATION®5, STADIA, XBOX
ONE, XBOX SERIES X/S |
TOM CLANCY’S RAINBOW SIX® SIEGE: YEAR 7 – SEASON 1 |
AMAZON LUNA, PC, PLAYSTATION®4, PLAYSTATION®5, STADIA, XBOX
ONE, XBOX SERIES X/S |
1 Premium new releases on PlayStation and Xbox based on NPD, GSD
and Company estimates2 Premium new releases on PlayStation and Xbox
based on NPD, GSD and Company estimates
3 Sales at constant exchange rates are
calculated by applying to the data for the period under review the
average exchange rates used for the same period of the previous
year.
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