Ubisoft Lost $71 Million
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Ubisoft Lost $71 Million
5 November, 2015

Ubisoft ‘s earnings in the first half of the fiscal year ended on September 30, 2015. The overall sales fell to a huge 57% and their net loss was at a massive $71 million.

US-ENTERTAINMENT-IT-E3On the other hand back catalog sales have performed well with a 53.1% increase in the overall with digital sales totaling $153.98 million which equals to 48% of the total sales, a good bump from the 27.8% in the first-half a year ago. Also, if you also look at the most recent second quarter, sales fell 11%.

Co-Founder and CEO of Ubisoft, Yves Guillemot explained, “The quality of our back-catalog and the growing digitization of our business enabled us to deliver a solid performance in the first half of the year, even though – as planned – we did not release any major titles during the period. The fact that more than 80 percent of our annual sales are expected to be generated in the second half of the year mechanically weighed on our earnings for the first six months.”

He believes the outlook for the industry will continue to be promising and that Ubisoft has unique value-creating potential. Guillemot feels Ubisoft will continue to develop their business and is aiming to be one of the highest performing groups in the game industry and be a leader in the overall entertainment sector. By doing this they offer shareholders significant value – creation potential for the coming years.

Although the first half of Ubisoft’s year was silent, they are expecting a “sharp increase” in sales in the second half with the launch of: Assassin’s Creed Syndicate, Far Cry Primal, Just Dance 2016, Rainbow Six Siege and The Division. They are expecting third-quarter sales to be down about 26%, but they are expecting the sales to be stable.

Source: gamesindustry.biz

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