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(AOF) – Ubisoft has published a turnover of 400 million euros for its first quarter 2018-2019. In detail, the net bookings amounted to 381.5 million euros over the period, up sharply by 88.8%. The video game publisher says it has exceeded its target (about 350 million euros). Net digital bookings increased by 76.7% to 287 million euros. In its press release, Ubisoft welcomed a "solid performance, driven by a back-catalog in strong progression and the continuation of digital dynamics."
Regarding its outlook, the group aims for a turnover of between 345 and 355 million euros for its second quarter 2018-2019. Net bookings are expected around 345 million. Lastly, Ubisoft has confirmed its annual targets for 2018-2019 with sales of around € 2 billion and a free cash flow of around € 300 million.
AOF – KNOWLEDGE PLUS
Highlights of the Value
-Third Independent Worldwide Video Game Publisher with Assbadin's Creed's Leading Franchises, Just Dance, Watch Dogs and Far Cry and the Tom Series Clancy (Ghost Recon, Rainbow 6, The Division …)
– Strong positioning on open-world games (Watch Dogs, Assbadin's Creed, Far Cry …) whose share is growing rapidly in the industry -the 2 / 3 of the market today against 16% in 2008;
– Presence in all segments of the video game, with powerful licenses: consoles with AAA blockbusters (Assbadin's Creed, Far Cry …); Free To Play on PC with for example Ghost Recon Online; mobile games with Rayman;
– Heavy investments in digital, which already accounts for 75% of turnover, of € 1.46 billion;
– Doubling in one year of market share in the States (10.1%) and strong growth of that in Europe (14.3%)
– Positive effects of the integration of Ketchapp and the partnership with the Chinese Tencent
– Solid balance sheet allowing to support loss-making exercises and shareholders' share buyback program
Weaknesses in value
– Difficulty in anticipating Ubisoft's results and very strong market consensus dispersed;
– highly competitive sectoral environment, price pressures on the "casual" segment, inflation of production costs;
– Delay in launching AAA games in the 2018 schedule (notably The Crew 2); [19659002] – Value deemed expensive by investors after its stock market rise fueled by the entry of Vivendi into the capital.
How to track the value
– High exposure of the results to postponements of the games launches;
– Strong seasonality of the activity: most of the sales between September and January (with a peak for the end-of-year holidays), hence a closing of accounts at the end of March;
– Development strategy focused on "core gaming"
– Ambitious three-year plan: € 2.2 billion in revenues, operating income of € 440 million and cash flow of € 300 million, aimed at convincing shareholders to maintain the group's independence, threatened by Vivendi
– Reception reserved for new licenses like Skull & Bones, and the return of the Beyond Good and Evil license
– Achievement of 2017-2018 targets of € 1.7 billion in sales and sales current profit up sharply to € 270 million and for 2018-2019 , a profit of 440 M €
– Faced with the hostile entry of Vivendi, to nearly 28% of the capital, strengthening of their position by the founding brothers and the family Guillemot to 15.7% of the titles and 21.61% of the voting rights, together with financial partners.
Computers – Video Games
At the World Video Game Show in Los Angeles (E3), new games and e-sports tournaments were honored, in the meantime the cloud shift for consoles in 2020. E-sport offers tremendous opportunities for the industry, and the current "Battle Royale" (100 players compete for one winner) should help popularize it . Epic Games, the publisher of the "Fortnite" video game, has announced a $ 100 million endowment for next season. Other publishers wishing to confirm or reinforce their place in e-sport include Riot Games, the world leader in e-sports and creator of the competitive game "League of Legends"; Nintendo, who presented in detail during the last E3 its flagship game of the year, Super Smash Bros Ultimate, based on the fight, including online, all its flagship characters; or Ubisoft, which wants to impose its franchise "Rainbow Six" among the most followed competitions.
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