Ubisoft Q1 2019 Report

Transcript:

How’s it going everybody, Adrian Simple here from The Gaming Observer. It is July 17th, 2019, and Ubisoft just released their Q1 financials, so let’s take a look here. Thegamingobserver.com for links and a transcript.

The whole report is led by their net bookings, which is down 17% year over year, but is actually higher than their predictions. They originally forecasted €270 million, and they came about 45 million above that. Not only that, but Player Recurring Investments were close to 50% of the bookings, so they’ve got a lot of user investment, which is up 20% year-over-year. That’s a really good sign for Ubisoft, and that number will probably only go up with the announced Uplay+.

They credit their bookings to a couple of games here, Assassin’s Creed Odyssey, Rainbow Six Siege, and The Division 2. They called Siege “one of the industry’s top-ten best-selling titles over the last five years”, which is for any games sold at $60, so obviously it won’t include free-to-play games. That’s an interesting one, I can’t say I would have predicted that one. Obviously it has seen success thanks to the constant interest over the years, but there are a lot of titles that could pull that off that aren’t yearly releases. Look at the Nintendo games, or things like The Witcher 3, Destiny 2. I mean, they’re all probably in that stat as well, but I’d be curious to know where in the top 10 Siege would be. They call The Division 2 the best selling game since the beginning of the year, which probably makes sense. It would be competing with Kingdom Hearts III, Mortal Kombat 11, and probably Crash Team Racing if it had a bit more time.

Sales, which under IFRS is basically revenue, is down 9%. They didn’t have a runaway game this quarter, as you can see with 86% of their bookings being from the back-catalog, so this isn’t a bad stat at all.

CEO Yves Guillemot calls their fiscal year lineup the strongest in the last five years, which includes Rainbow Six Quarantine, Gods & Monsters, Watch_Dogs Legion, and Ghost Recon Breakpoint. He’s probably right, I took a look at the last five years and I can’t say that one is definitely better. 2016-2017 is close, it had Trials of the Blood Dragon, Watch Dogs 2, AC: Origins, and For Honor. In terms of revenue though, it’s no contest.

In terms of predictions, they’re expecting a 15% downgrade on bookings, which is apt considering their lineup for Q2. They’ve got a whole bunch of DLC coming up, with two pretty minor releases. So they’re gonna ride on the 50% PRI this quarter, but Q3 and Q4 will be much better for them with the lineup they’ve got, and with the Uplay+ launch in September.

The only significant note in the breakdowns is that PC jumped up 10% this quarter, though that can be attributed to the Anno 1800 release. There was speculation that this may rise even more with Uplay+. Otherwise, things are pretty standard across regions and platforms.

Okay, so that is Ubisoft’s Q1 2019. Let me know if you enjoy this kind of content on the YouTube channel, and if you’d like to see more of it. I know it’s short, but it gives you an idea of where the company is at without having to do all of the research yourself. A big thanks to Brandon for supporting videos like this through Patreon. My name is Adrian Simple, see you tonight with the daily update, and happy gaming everyone.

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