HomeMain MenuPress ReleasesUBISOFT REPORTS FULL-YEAR 2017-18 SALES AND EARNINGS FIGURES

UBISOFT REPORTS FULL-YEAR 2017-18 SALES AND EARNINGS FIGURES

UBISOFT REPORTS FULL-YEAR 2017-18 SALES AND EARNINGS FIGURES

 

Very solid performance for the fourth quarter and continued excellent execution across the board

 

2017-18: higher-THAN-EXPECTED PERFORMANCE AND new record-level PROFITABILITY

 

  • Total annual sales of €1,731.9 million, up 18.6% year on year, outstripping target of around €1,640.0 million.

 

  • Continued excellent execution across the board:

 

    • Far Cry® 5: Ubisoft’s second biggest release ever with USD 310 million total players spending in the release week[1]

 

    • Assassin’s Creed® Origins: record performance for an Assassin’s Creed game in a fourth fiscal quarter

 

    • Rainbow Six® Siege: more than 30 million registered players, record engagement in fourth-quarter 2017-18 and esports viewership up by approximately 300.0% for the Six Invitational[2]

 

    • The Division®: more than 20 million registered players

 

    • Ghost Recon® Wildlands: more than 10 million registered players

 

    • Record peak concurrent users for the Group in fourth-quarter 2017-18

 

    • Annual digital revenue up 37.8% to €1,004.7 million (representing 58.0% of total sales versus 50.0% for the previous fiscal year)

 

      • Sharp increase in PRI[3]: up 58.7% to €482.5 million (27.9% of total sales against 20.8% in 2016-17)

 

        • Mobile revenue up 66.2%

 

    • Annual back-catalog sales up 27.2% to €826.0 million (47.7% of total sales compared with 44.5% in 2016-17), confirming the increasingly recurring profile of the Group’s business.

 

  • Non-IFRS operating income up 26.2% to €300.1 million, exceeding target of €270.0 million.

                                           

    • Non-IFRS operating margin reaches a record high at 17.3% (16.3% in 2016-17)

 

 

TARGETS FOR 2018-19: THE GROUP IS STANDING BY ITS TARGETS FOR NON-iFRS OPERATING INCOME AND FREE CASH FLOW

 

Sydney, Australia May 18, 2018 – Today, Ubisoft released its sales and earnings figures for the fiscal year ended March 31, 2018.

 

Yves Guillemot, Co-Founder and Chief Executive Officer stated, “Ubisoft ended the fiscal year on a very positive note, with continued excellent execution across the board. The Group further strengthened its brands thanks to the quality of its games, strong live services and a deep commitment to player communities. During the fourth quarter, we reached a record of peak concurrent users thanks to record engagement levels and esports viewership for Rainbow Six Siege, the successful launch of Far Cry 5 – the second biggest launch in Ubisoft’s history – and continued strong performance by Assassin’s Creed Origins, Mario + Rabbids Kingdom Battle and our back-catalog titles. As a result, we have outperformed our financial targets, with record-high sales, digital and back-catalog revenues, and profitability.

 

In the short and medium term, Ubisoft has many growth opportunities to tap and expects further profitability increases. Our digital transformation is progressing at a faster pace than we anticipated. Our potential in the PC and mobile markets is massive, notably in China. Finally, we are continuing to develop and structure our esports offering, which represents a significant opportunity.

 

Over the longer term, new forms of gaming, enabled notably by streaming, will allow our brands to reach a much wider audience. Consequently, we are investing in our online services platform – which boasted 88 million unique active players[4] – as well as in artificial intelligence in order to better tailor the game experience to each player’s profile and therefore offer them ever-richer experiences.”

 

Note

Unless stated otherwise, all of the figures in this press release correspond to non-IFRS data, adjusted to exclude non-operating items. The Group presents these 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 with a description of the applicable adjustments, as well as a reconciliation table between the IFRS consolidated income statement and the non-IFRS consolidated income statement are provided in an appendix to this press release.

 

 

Income statement and key financial data

 

In € millions2017-18%2016-17%
IFRS Sales1,731.91,459.9
IFRS Gross margin1,435.182.9%1,189.081.4%
Non-IFRS R&D expenses(661.1)(38.2)%(521.7)(35.7)%
        Non-IFRS selling expenses(335.9)(19.4)%(313.1)(21.4)%
        Non-IFRS G&A expenses(138.0)(8.0)%(116.4)(8.0)%
Total non-IFRS SG&A expenses(473.9)(27.4)%(429.5)(29.4)%
Non-IFRS operating income300.117.3%237.716.3%
IFRS operating income222.3 175.8 
Non-IFRS diluted EPS (in €)1.801.46 
IFRS diluted EPS (in €)1.18 0.92 
Non-IFRS cash flows from operating activities*169.9 149.1 
R&D investment expenditure**720.2 610.5 
Net cash/(debt) position(548.1) (80.4) 
* Based on the consolidated cash flow statement for comparison with other industry players (not audited)
** Including royalties but excluding future commitments

 

 

Sales

 

Full-year sales for 2017-18 came to €1,731.9 million, outstripping the Group’s target of around €1,640.0 million and up €18.6% (or 22.9% at constant exchange rates[5]) compared with the €1,459.9 million recorded for 2016-17.

 

Sales in the fourth quarter of 2017-18 – a period that saw the release of one major game, Far Cry 5 – totaled €540.7 million, exceeding the target of approximately €449.0 million. This fourth-quarter sales figure represents a 16.6% decrease (or 11.2% at constant exchange rates5) versus the €648.6 million recorded for the same period of 2016-17, when two major games were released (Ghost Recon Wildlands and For Honor®).

 

 

Main income statement items[6]

 

Gross margin rose to 82.9% of sales and €1,435.1 million in absolute value terms (compared with 81.4% and €1,189.0 million in 2016-17).

 

Non-IFRS operating income came in at €300.1 million, up 26.2% on the €237.7 million recorded for 2016-17.

 

Non-IFRS net income came in at €220.6 million, representing non-IFRS diluted earnings per share (“EPS”) of €1.80, compared with non-IFRS net income of €174.3 million and non-IFRS diluted EPS of €1.46 for 2016-17.

 

IFRS net income for 2017-18 came to €139.5 million, representing IFRS diluted EPS of €1.18 versus IFRS net income of €107.8 million and IFRS diluted EPS of €0.92 in 2016-17.

 

 

Main cash flow statement[7] and balance sheet items

 

Non-IFRS cash flows from operating activities represented a net inflow of €169.9 million against €149.1 million in 2016-17. This increase reflects higher non-IFRS cash flow from operations (€214.9 million versus €110.2 million in 2016-17) and a €45.0 million increase in non-IFRS working capital requirement (€38.9 million decrease in 2016-17).

 

At March 31, 2018, Ubisoft had net debt7 of €548.1 million versus €80.4 million one year earlier. This rise mainly reflects the purchases and binding purchase commitments of own shares for €411.5 million during the fiscal year and a €100 million deposit related to a total return swap with settlement at maturity for part of the share previously owned by Vivendi. As a reminder the Company free cash flow target stands at around €300.0 million in 2018-19.

 

 

Outlook

 

Full-year 2018-19

 

Ubisoft is standing by its 2018-19 targets for non-IFRS operating income and free cash flow. As announced on May 9, 2018, in line with the recommendations of the European regulators (ESMA) and the French Financial Markets Authority (AMF), Ubisoft is today introducing a new target for sales calculated in accordance with IFRS 15 as well as a new indicator called “Net Bookings” which corresponds to its sales figure as calculated prior to the Company’s application of IFRS 15 (see Press Release in appendices):

 

  • IFRS 15 sales of around €2,000.0 million[8]

 

  • Net bookings of approximately €2,050.0 million compared with the previous target of €2,100.0 million, calculated based on:

 

    • The release of three new AAA games (The Crew® 2, The Division® 2 and an unannounced franchise title) representing 19 million units (vs the four AAA releases and 23 million units previously announced). In line with previous practices and in view of the acceleration of our digital transformation, growth in back-catalog sales and excellent momentum of recent releases, Ubisoft has decided to give itself more time to develop Skull & BonesTM to offer players an even more engaging experience. Skull & Bones is now scheduled for release in 2019-20.

 

    • Digital revenue is expected to represent around 65% of net bookings (compared with approximately 60% previously) and PRI should represent around 30% of net bookings (versus the previous target of over 25%).

 

    • Back-catalog sales are forecasted to represent approximately 50% of net bookings (versus the previous target of over 45%).

 

  • Non-IFRS operating income (based on net bookings) of around €440.0 million.

 

  • Free cash flow of approximately €300.0 million.

 

First-quarter 2018-19

 

For first-quarter 2018-19, the Group expects IFRS 15 sales to amount to around €350.0 million8 and net bookings to total approximately €350.0 million (compared with €202.0 million for the same period of 2017-18).

 

Recent significant events

 

Sale of Vivendi’s entire stake in Ubisoft, with the transaction structured as follows:

  • New long-term investors in Ubisoft, with Ontario Teachers’ Pension Plan and Tencent acquiring 3,787,878 and 5,591,469 Ubisoft shares respectively.
  • Share buybacks by Ubisoft: Ubisoft has undertaken to buy back 7,590,909 of its own shares from Vivendi through a structured transaction taking the form of (i) a forward sale of Ubisoft shares by Vivendi to Crédit Agricole Corporate and Investment Bank (CACIB), and (ii) a mechanism involving Ubisoft’s forward buyback of its own shares from CACIB, enabling Ubisoft to defer its buybacks over the period from 2018 to 2021.
  • Purchase of Ubisoft shares by Guillemot Brothers SE: Guillemot Brothers SE has undertaken to purchase 3,030,303 Ubisoft shares.
  • An accelerated private placement of 13,376,620 Ubisoft shares among qualified investors.

 

Signature of a strategic partnership agreement with Tencent: Ubisoft has signed a strategic partnership agreement with Tencent which will increase Ubisoft games’ exposure and engagement in China and enable the Company to reach millions of new players on mobile and PC.

 

Acquisition of 1492 Studio, a game development studio specialized in the development of free-to-play episodic and interactive stories on mobile.

 

Acquisition of Blue Mammoth Games, a game development studio specialized in free-to-play multi-player games on PC and the PS4.

 

Announcement of new studios openings in India, Ukraine and Canada: The Mumbai and Odessa studios will be focused on jointly developing AAA games and post-release game support. The Winnipeg studio will play a strategic role in jointly developing AAA titles and will be dedicated to developing tools and technology.

 

 

Disclaimer

This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation 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 been presented and approved by the Board of Directors on 05/17/18 and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on July 21, 2017 with the French Financial Markets Authority (l’Autorité des Marchés Financiers)).

 

About Ubisoft

Ubisoft is a leading creator, publisher and distributor of interactive entertainment and services, with a rich portfolio of world-renowned brands, including Assassin’s Creed, Just Dance, Watch_Dogs, Tom Clancy’s video game series, Rayman and Far Cry. The teams throughout Ubisoft’s worldwide network of studios and business offices are committed to delivering original and memorable gaming experiences across all popular platforms, including consoles, mobile phones, tablets and PCs. For the 2017-18 fiscal year Ubisoft generated sales of €1,732 million. To learn more, please visit www.ubisoftgroup.com


© 2018 Ubisoft Entertainment. All Rights Reserved. Ubisoft and the Ubisoft logo are registered trademarks in the US and/or other countries.

 

APPENDICES

 

 

 

 

Breakdown of sales by geographic region
     
% Sales% Sales% Sales% Sales
 Q4 2017/18Q4 2016/1712 months 2017/1812 months 2016/17
Europe35%36%37%38%
North America45%48%47%47%
Rest of the World20%16%16%15%
TOTAL100%100%100%100%

 

 

  

 

 

 

 

 

 

   
Breakdown of sales by platform
    
Q4 2017/18Q4 2016/1712 months 2017/1812 months 2016/17
PLAYSTATION®443%46%42%41%
XBOX One23%30%23%27%
PC21%17%18%18%
NINTENDO SWITCHTM5%7%
XBOX 360, PS®3, Wii™, Wii U™1%2%2%7%
Others*7%5%8%7%
TOTAL100%100%100%100%
*Mobile, ancillaries…
 
     
     
     
     

 

 

 

 

 

Title release schedule 1st quarter

(April – June 2018)

 

 

 

PACKAGED & DIGITAL

 

 
FAR CRY® 3 CLASSIC EDITION 

PlayStation®4, Xbox One™

 

 

MARIO + RABBIDS® KINGDOM BATTLE GOLD EDITION (retail only)

 

 

nintendo Switch™

 

SOUTH PARKTM THE FRACTURED BUT WHOLETM 

nintendo Switch™

 

THE CREW® 2 

PlayStation®4, Xbox One™, PC

 

 

 

 

Digital ONLY 
FAR CRYTM 5 – HOURS OF DARKNESS 

PlayStation®4, Xbox One™, PC

 

FOR HONOR® SEASON 6 HERO’S MARCH 

PlayStation®4, Xbox One™, PC

 

 

MARIO + RABBIDS® KINGDOM BATTLE – DONKEY KONG ADVENTURE

 

 

nintendo Switch™

 

MIGHT & MAGIC® : ELEMENTAL GUARDIANS 

Google play, App store

 

TOM CLANCY’S RAINBOW SIX® SIEGE OPERATION PARA BELLUM 

PlayStation®4, Xbox One™, PC

 

 

 

 

 

 

 

Audit procedures were carried out and audit reports are currently being issued

 

 

Consolidated income statement (IFRS, audited)

 

 

In thousands of euros 03.31.1803.31.17
  
 
   
Sales 1 731 894 1 459 874
Cost of sales -296 820 -270 887
Gross Margin 1 435 074 1 188 987
Research and Development costs -690 592 -548 735
Marketing costs -339 274 -316 806
General and Administrative costs -144 649 -122 538
Current operating income 260 559 200 907
Non-current expenses and income -38 241 -25 094
Operating income 222 317 175 813
Net borrowing costs -15 909 -10 816
Net foreign exchange gains/losses -5 747 -2 288
Other financial income 8 312 2 348
Other financial expenses -56 -5 449
Net financial income -13 400 -16 205
Share in profit of associates -224 -338
Income tax -69 241 -51 457
Profit for the period 139 452 107 813
Earnings per share   
Basic earnings per share (in €) 1,26 0,98
Diluted earnings per share (in €) 1,18 0,92
Weighted average number of shares in issue 110 399 832 109 887 358
Diluted weighted average number of shares in issue 122 443 961 119 676 950
 

 

    

 

 

 

 

 

 

 

Definitions of Non-IFRS Financial Indicators

 

Net Bookings: corresponds to the prior sales standard.

 

Non-IFRS operating income corresponds to operating income less the following items:

    • Stock-based compensation expense arising on free share plans, group savings plans and stock options.
    • Depreciation of acquired intangible assets with indefinite useful lives.
    • Non-operating income and expenses resulting from restructuring operations within the Group.

 

Non-IFRS operating margin corresponds to the ratio between the Non-IFRS operating income and sales. This ratio reflects the economic performance.

 

Non-IFRS net income corresponds to net income less the following items:

    • The above-described deductions used to calculate non-IFRS operating income.
    • Income and expenses arising on revaluations, carried out after the measurement period, of the potential variable compensation granted in relation to business combinations.
    • OCEANE bond interest expense recognized in accordance with IAS39
    • The tax impacts on these adjustments.

 

Non-IFRS diluted EPS corresponds to Non-IFRS net income divided by the weighted average number of shares after the exercise of dilutive instruments rights.

 

The adjusted cash flow statement includes:

    • Non-IFRS cash flow from operations which includes:
  • The costs of internal development and licenses development (presented under cash flows from investing activities in the IFRS cash flow statement) as these costs form an integral part of the Group’s operations.
  • Current and deferred taxes.
    • Non-IFRS change in working capital requirement which includes movements in deferred taxes, thus cancelling out the deferred tax income or expense presented in Non-IFRS cash flow from operations.
    • Non-IFRS cash flows from operating activities which includes the costs of internal development and licenses development (presented under cash flows from investing activities in the IFRS cash flow statement and included in Non-IFRS cash flow from operations in the adjusted cash flow statement).
    • Non-IFRS cash used by investing activities which excludes the costs of internal development and the licenses development that are presented under Non-IFRS cash flow from operations.

 

Free cash flow corresponds to cash flows from operating activities after cash inflows/outflows arising on the disposal/acquisition of other intangible assets and property, plant and equipment.

 

Free cash flow before WCR corresponds to cash flow from operations after cash inflows/outflows arising on the disposal/acquisition of other intangible assets and property, plant and equipment.

 

Net cash (debt) position corresponds to investments and cash and cash equivalents less financial liabilities excluding derivatives.

 

 

 

 

Reconciliation of IFRS Net income and non-IFRS Net income

 

 

In million of euros,
except for per share data
2017-182016-17
IFRSAdjustmentsNon-IFRSIFRSAdjustmentsNon-IFRS
Sales1 731,91 731,91 459,91 459,9
Total Operating expenses 

(1 509,6)

77,8(1 431,8)(1 284,1)61,9(1 222,2)
Stock-based compensation(39,6)39,60(36,8)36,80,0
Non-current expenses and income(38,2) 

38,2

0(25,1)25,10,0
Operating Income222,377,8300,1175,861,9237,7
Net Financial income(13,4)7,7(5,7)(16,2)7,2(9,0)
Share in profit of associates(0,2)(0,2)(0.3)(0.3)
Income tax(69,2)(4,4)(73,6)(51,4)(2,6)(54,0)
Net Income139,581,1220,6107,866,5174,3
Diluted earnings per share1,180,621,800,920,541,46

 

 

 

 

 

 

Consolidated balance sheet (IFRS, audited)

   
ASSETSNetNet
In thousands of euros03.31.1803.31.17
Goodwill259 462180 735
Other intangible assets782 402736 465
Property, plant and equipment114 116106 375
Investments in associates-289-68
Other financial assets106 8955 478
Deferred tax assets84 18188 831
Non-current assets1 346 7671 117 815
Inventory20 26425 359
Trade receivables435 573405 557
Other receivables208 778146 467
Other current financial assets8 3201 131
Current tax assets38 48132 967
Cash and cash equivalents746 939852 699
Current assets1 458 3561 464 180
Total assets2 805 1222 581 995
   
LIABILITIES AND EQUITYNetNet
In thousands of euros03.31.1803.31.17
Capital8 6528 752
Premiums234 123280 975
Consolidated reserves507 102736 276
Consolidated earnings139 452107 813
Total equity889 3301 133 816
Provisions3 0744 246
Employee benefit10 2899 079
Long-term borrowings933 629640 705
Deferred tax liabilities96 04772 773
Non-current liabilities1 043 039726 803
Short-term borrowings361 538293 403
Trade payables176 613178 282
Other liabilities321 935219 817
Current tax liabilities12 66729 872
Current liabilities872 753721 376
Total liabilities1 915 7921 448 179
Total liabilities and equity2 805 1222 581 995

 

 

 

 

 

 

 

 

Consolidated cash flow statement for comparison with other industry players (non audited)

 

In thousands of euros03.31.1803.31.17
Cash flows from non-IFRS operating activities
Consolidated earnings139 452107 813
+/- Share in profit of associates224338
+/- Net depreciation on internal & external games & movies462 207407 816
+/- Other depreciation on fixed assets81 82466 819
+/- Net Provisions4 052-2 563
+/- Cost of share-based payments39 55836 836
+/- Gains / losses on disposals308408
+/- Other income and expenses calculated8 578-10 655
+/- Cost of internal development and license development-521 290-496 588
CASH FLOW FROM NON-IFRS OPERATION214 914110 223
Inventory229-5 381
Trade receivables-61 54431 934
Other assets-78 5673 113
Trade payables15 243-45 082
Other liabilities79 59154 315
+/- Change in working capital from non-IFRS operating activities-45 04838 899
TOTAL CASH FLOW GENERATED BY NON-IFRS OPERATING ACTIVITIES169 865149 122
– Payments for the acquisition of intangible assets and property, plant and equipment-59 366-62 914
+ Proceeds from the disposal of intangible assets and property, plant and equipment20603
+/- Other cash flows from investing activities-131 493-44 374
+ Repayment of loans and other financial assets29 79043 322
+/- Changes in scope (1)-77 589-105 642
CASH USED BY NON-IFRS INVESTING ACTIVITIES-238 638-169 005
Cash flows from financing activities  
+ New borrowings894 598669 147
+ New finance leases5 0541 416
– Repayment of finance leases-1 672-898
– Repayment of borrowings-487 677-214 663
+ Proceeds from shareholders in capital increases48 9519 465
+/- Sales / purchases of own shares-411 498-67 844
CASH GENERATED (USED) BY FINANCING ACTIVITIES47 756396 623
Net change in cash and cash equivalents-21 017376 740
Cash and cash equivalents at the beginning of the fiscal year632 314255 688
Foreign exchange gains/losses-27 943-114
Cash and cash equivalents at the end of the fiscal year(1)583 354632 314
(1) Including cash in companies acquired and disposed of4 73826 421
 

 

RECONCILIATION OF NET CASH POSITION

 Cash and cash equivalents at the end of the period583 354632 314
 Bank borrowings and from the restatement of finance leases-1 005 431-646 752
 Commercial papers-126 000-66 000
 NET CASH POSITION-548 077-80 438

 

 

 

 

Consolidated cash flow statement IFRS (audited)

 

 

In thousands of euros03.31.1803.31.17
Cash flows from operating activities adjusted
Consolidated earnings139 452107 813
+/- Share in profit of associates224338
+/- Net Depreciation544 031474 635
+/- Net Provisions4 052-2 563
+/- Cost of share-based payments39 55836 836
+/- Gains / losses on disposals308408
+/- Other income and expenses calculated8 578-10 655
+/- Tax Expense69 24151 457
TOTAL CASH FLOW FROM OPERATIONS805 445658 269
Inventory229-5 381
Trade receivables-61 54431 934
Other assets-87 59011 854
Trade payables15 243-45 082
Other liabilities52 83230 256
+/- Change in working capital from operating activities adjusted-80 83023 582
+/- Payable tax expense-33 460-36 140
TOTAL CASH FLOW GENERATED BY OPERATING ACTIVITIES691 155645 711
– Payments for the acquisition of internal & external games-521 290-496 588
– Payments for the acquisition of intangible assets and property, plant and equipment-59 366-62 914
+ Proceeds from the disposal of intangible assets and property, plant and equipment20603
+/- Other cash flows from investing activities-131 493-44 374
+ Repayment of loans and other financial assets29 79043 322
+/- Changes in scope (1)-77 589-105 642
CASH USED BY INVESTING ACTIVITIES ADJUSTED-759 928-665 594
Cash flows from financing activities
+ New borrowings894 598669 147
+ New finance leases5 0541 416
– Repayment of finance leases-1 672-898
– Repayment of borrowings-487 677-214 663
+ Proceeds from shareholders in capital increases48 9519 465
+/- Sales / purchases of own shares-411 498-67 844
CASH GENERATED (USED) BY FINANCING ACTIVITIES47 756396 623
Net change in cash and cash equivalents-21 017376 740
Cash and cash equivalents at the beginning of the fiscal year632 314255 688
Foreign exchange gains/losses-27 943-114
Cash and cash equivalents at the end of the fiscal year(1)583 354632 314
(1) Including cash in companies acquired and disposed of4 73826 421

 

 

 

 

 

 

 

 

APPLICATION OF IFRS 15*

Impact on Financial Communications

 

 

 

Paris, May 9, 2018 – As from fiscal 2018-19, Ubisoft will apply IFRS 15 (the new revenue recognition standard) for the first time. The main impacts that this new standard will have on the recognition of the Group’s sales and on its financial communications are presented below.

 

Accounting impacts of IFRS 15

 

The main impact of IFRS 15 for Ubisoft concerns the recognition of sales of games with a service component, i.e. “Live Services” games, which give players access to online services. Under IFRS 15, all of these services – which are accessible at no extra cost for users – constitute a distinct obligation for which the consideration received on the initial delivery of the original game must be recognized in revenue over the estimated period of time that the players use the service.

Under the currently-applicable revenue recognition standard (IAS 18**), the service component is not separated out and the full amount of the revenue received for the game is recognized when the game is delivered. Consequently, the application of IFRS 15 will result in a portion of the revenue generated on these games being deferred beyond their initial delivery date.

 

Impacts on financial communications

 

The Group will apply IFRS 15’s revenue recognition rules for the first time as from fiscal 2018-19.

In addition to its financial statements prepared in accordance with IFRSs as adopted by the European Union, Ubisoft will continue to report alternative performance indicators (non-IFRS), with the same level of detail as previously. In order to enable meaningful comparisons with prior-period sales figures, Ubisoft will introduce a new alternative performance indicator in its financial communications called “Net bookings”. This indicator is used by Ubisoft to oversee and measure its business and commercial performance.

 

Timeline

 

As recommended by the European regulators (ESMA) and the French Financial Markets Authority (AMF), Ubisoft will issue sales figures that are compliant with IFRS 15 as from the press release on its first-quarter 2018-19 sales.

 

When it publishes its full-year results for fiscal 2017-18 on May 17, 2018, Ubisoft will report on the following targets:

  • 2018-19 sales in IFRS 15 format
  • Net Bookings for 2018-19
  • Non-IFRS operating income for 2018-19
  • Free Cash Flow for 2018-19

* International Financial Reporting Standard 15 – equivalent to US GAAP ISC 606

** International Accounting Standards

 

[1] Ubisoft estimate, based on observed sales price for main game sell through WW and first parties’ estimates for PRI

[2] Viewership for the Six Invitational – the annual esports final event for Rainbow Six Siege (held in February 2018) – versus viewership for the February 2017 final.

[3] Player Recurring Investment includes sales of digital items, DLC, seasonal passes, subscriptions and advertising.

[4] On consoles and PC in fiscal 2017-18

[5] 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 fiscal year

[6] For further information on income statement movements and cash flows see the slideshow published on the Ubisoft website.

[7] Based on the consolidated cash flow statement for comparison with other industry players (not audited)

[8] Based on our analysis to date of IFRS 15 (unaudited)