Ubisoft Reveals the first quarter 2022 earnings report at $324 Million

Ubisoft

Ubisoft, best known for its “Rainbow Six” and “Assassin’s Creed” video game franchises, has announced its first quarter results, showing net sales of approximately $324.4 million for the three months ended June 30, beating its target but down 10% from the same period last year. The report revealed that the sales were boosted by the “better-than-expected” performance of Assassin’s Creed and Rainbow Six Siege.

While Ubisoft started 2022 fairly strong, declines were noticeable in most areas, from back catalog bookings to digital sales. However, Ubisoft’s leaders seem to have high hopes for the year ahead, as they expect the company to generate about $414 million in revenue for the full year ending in March 2023. Ubisoft currently boasts a valuation of just over $5.2 billion, and while the past year or two have been volatile, there is still a lot of work to be done.

What is the outlook for Ubisoft?

Ubisoft

The year of postponements has come for the most predictable of victims. As day became night and water became wet, Ubisoft’s pirate game “Skull & Bones” (which I don’t think exists), announced four years ago, was postponed. Again. After three previous postponements.

Recently, there have been whispers on social media about a possible acquisition of Ubisoft. Following a string of acquisitions by Microsoft and Sony, there have been rumors that Sony Interactive Entertainment might acquire Ubisoft, but nothing concrete has been backed up. Over the past few years, Ubisoft has been hit by a wave of controversy over its internal operations, causing its stock price to plummet and its shareholders to waver.

Moreover, in recent weeks, we have seen Ubisoft projects postponed or cancelled altogether. For example, the ambitious Avatar project, an ambitious title, has postponed its release date from 2022 to an undetermined date of 2023-2024. We have also seen the cancellation of four projects, including the Splinter Cell VR experiment and Ghost Recon: Frontlines.

Nevertheless, Ubisoft has some projects currently in the works, including a foray into the mobile arena, which is expected to yield remarkable results. Currently, mobile versions of “Rainbow Six” and “The Division” are underway, as well as testing of the free-to-play “The Division”; testing of “Heartland” is underway, and the company is currently working on a new mobile version of “The Division” that will be released in the fall. This year will also see the launch of “Mario Rabbids”; the highly anticipated titles “Sparks of Hope” and “Skull and Bones.

Generating Growth
In the first quarter of 2022, Ubisoft reported that Assassin’s Creed and Rainbow Six brands drive growth far beyond initial expectations. Rainbow Six Siege, now in its seventh year of release, remains one of the most exciting esports products on the market. For Assassin’s Creed, several rumors about the two upcoming titles have sparked a firestorm, with players reporting that Origins, the Odyssey, and Valhalla, and it appears that players are once again turning their attention to back-catalog titles such as Origins, Odyssey, and Valhalla.

When this information was revealed on July 21, Ubisoft CEO Yves Guillemot spoke highly of the upcoming content.

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