Ubisoft improves its net profit by more than 14% in fiscal year 2015-2016
Ubisoft has just published financial results which could confirm Vivendi’s appetite for the video game publisher. The company posted a turnover of 1.39 billion euros for its 2015-2016 financial year, down 4.7% over one year. A performance that remains above the target, which was to exceed 1.36 billion. For its part, the net income (non-IFRS) reached 129 million euros, against 112.6 million a year earlier, an increase of 14.5% over the period. In the end, earnings per share (non IFRS) stood at 1.13 euros, against 1 euro previously.
32% of digital revenues
Moreover, Ubisoft indicates that the “digital segment” now represents 32% of its revenues, or more than 446 million euros, against 26.1% in the previous fiscal year. Back-catalog titles continued to bring in 354.6 million euros (+ 45.6%), now representing 25.4% of sales. In question, the growth of securities Far Cry Primal or even Tom Clancy’s Rainbow Six Siege.
One of Ubisoft’s strategic axes is to strengthen itself in multiplayer with a view to improving engagement… and company results. “The Division has 9.5 million registered users, with currently 3 hours (as of May 08, 2016) played on average daily by active players. These successes translate into an outperformance of the digital segment and have a positive impact on our profitability ”, declared Yves Guillemot, CEO of Ubisoft in a press release.
Vivendi rises in the capital
In this context, Ubisoft has also delivered its financial forecasts for the current fiscal year. The publisher expects a turnover of “approximately” 1.7 billion euros, for an operating result (non IFRS) of 230 million euros. He also hopes that digital will represent more than 35%, and the back-catalog 30%. “We are thus entering a new phase of expansion and strong value creation for our shareholders, with an operating margin target of 20% and free cash flow of around 300 million euros for 2018-19” , assures Yves Guillemot.
These results come as Vivendi has been eyeing Ubisoft for several months. Vincent Bolloré’s group recently rose to more than 17% of the company’s capital – granting itself at the same time more than 15% of the voting rights – with a view to requesting a reorganization of the board of directors.