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Ubisoft Announces Financial Results & Comments on Acquisition Speculation; “Best Year Ever” for Far Cry

Today Ubisoft announced its financial results for the fiscal year 2021-22, related to the period ending March 31, 2022.

Below you can find a summary of the publisher’s results on the top of the forecast for the current fiscal year.

The press release includes the usual comment by Chief Executive Officer Yves Guillemot.

“My first thoughts go to more than 1,000 Ukrainian team members today. I want to reiterate our unwavering solidarity and we will keep on doing everything in our power to support our allies as they go through those extremely difficult times.

The past two years have been intense. We deliver the biggest line-up of quality content across many challenges across the industry, including adaptation to new hybrid production models. At the same time, we have been thoroughly transforming our organization as we prepare to capture many great opportunities in our fast-evolving industry and to continue to deliver amazing experiences to players. We have new leaders across the company, expanded our executive committee, and continued building best-in-class governance. Last year, we welcomed more than 600 talents who had worked at Ubisoft, reflecting our reputation as a great place to work.

We also made significant additions to our teams, from highly recognized experts in industry leading producers and creators to artificial intelligence and programming. Women now represent 25% of our total workforce, and represent one-third of total recruitment in the past 12 months. Furthermore, we have a strong representation of women at leadership levels with 42% and 45% respectively for the Executive Committee and the Board.

We have ambitious plans to continue building a more diverse and inclusive organization. “

“Over the past year, meaningful challenges have progressed on key strategic priorities, including growing our major brands, building an increasingly recurring business, and implementing profound transformation of our organization. During demanding times, our teams have showcased great resilience. As an organization, we have demonstrated that we can rely on dependable brands, production and technology assets that are greater than ever at a time when the value of assets has never been so high.

On the technology side, we have been developing cutting-edge capabilities at the service of players’.
Experience, from our leading engines Anvil and Snowdrop, to i3D.net our fast-growing video-game
Hosting provider, to promote investments in cloud computing with Scalar, as well as in Voxels and
Web3.

We are now entering a new multi-year phase of significant topline growth, spurred by the major progression of our investments over the past years. We have ambitious plans to grow our biggest
franchises with notably four promising mobile games under development, and expanding our overall
Portfolio with new IPs and massive beauty licensed brands. We are diversifying our operations
Through more business models, more platforms and we are continuing to grow our recurring profile. As a consequence, we expect a significant progression of our operating income, starting in 2023-24.

Interestingly, at the beginning of the conference call, Guillemot also commented on the consolidation and acquisitions of the talks.

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Guillemot mentioned that there has been a lot of talk about consolidation in the industry and in Ubisoft in particular. Ubisoft’s overall position is clear, and it states that they have “everything they need to remain independent.” They have the talents and franchise to create “huge value in the coming years.” This has helped Ubisoft create partnerships with the biggest players in entertainment and tech.

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According to Guillemot, the current speculation puts plain appeal into the real appeal and value of Ubisoft’s assets, and the company’s value creation potential.

That being said, as a publicly listed company, it has established practice for the board to review any offer in the interest of all shareholders and Ubisoft’s teams.

Guillemot concluded by affirming that Ubisoft did not comment further on this topic.

Chief financial officer Frédérick Duguet also commented.

“Our full-year performance was built on new releases and back-catalogs across many brands and content, as well as our ability to continuously leverage the competition between platforms through high-value partnerships.

Our three biggest brands, Assassin’s Creed, Far Cry and Rainbow Six, each delivered well over 300 M € of net bookings, a first in Ubisoft’s history, reflecting Assassin’s Creed Valhalla’s stellar performance, Far Cry’s best year ever and expansion of the Rainbow Six universe.

For 2022-23 we look to return to significant topline growth. It will be driven by a diverse line-up
of premium games, including Avatar: Frontiers of Pandora, Mario + Rabbids: Sparks of Hope and
Skull & Bones, as well as other exciting titles. This growth will also benefit from our Free-to-Play
releases, especially those based on our biggest IPs. “

On top of that, we also get a list of highlights for the company’s quarterly achievements. Assassin’s Creed Valhalla actually grew from its release year, while it was the best year ever for the Far Cry brand.

  • Building major franchises: In 2021-22, Ubisoft’s three largest brands each generate well
    over 300 M € of net bookings
    • Assassin’s Creed: Brand’s net bookings are almost doubling vs 2019-20, the prior release-free
      year. Stellar performance of Assassin’s Creed Valhalla, with more unique players in 2021-22
      than in 2020-21
    • Far Cry: Best year ever for the brand
    • Tom Clancy’s Rainbow Six: Net Bookings Growth on the Back of the Brand’s Growth
      with Rainbow Six Extraction. Very positive reception for the Rainbow Six Siege Year 7 roadmap
  • Growing the recurring profile of our business: Back-catalog up 11.1%, and representing
    More than 50% of total net bookings for the fourth consecutive year
  • Continued change of the organization
    • Expansion of the Executive Committee and new independent board member
    • Evolved capital allocation decision-making process with new brand, editorial, production and
      technology leaderships and frameworks
    • Attracted numerous top-tier talents and welcomed back more than 600 talents1
    • Diversity and Inclusion: 25% of Ubisoft’s Workforce is Women vs. Continuous Progress
      22% two years ago. Strong representation of women at leadership levels: 42%
      and 45% for the Executive Committee and the Board
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Below you can check out a breakdown of the publisher’s sales platform and region and release of the slate for the current fiscal quarter.

Interestingly, Ubisoft has stopped splitting sales on the console platform by brand as it did until the last quarter and now bunches them all under “consoles.”

If you would like to compare, you can check out the results related to the last quarter, which were published in January.

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