Ubisoft’s Q3 2017-18 earnings call took place today and the company revealed a sharp rise digital revenue. With more games attempting to become live services and keep players continually invested in them, this should come as no surprise.
In the report, Ubisoft revealed that it had made €725.0 million in Q3 sales, up 36.8% year over year. This is well beyond Ubisoft’s original target of €630.0 million and its revised target of €700.0 million.
Ubisoft touted great execution across the board from all of its series including the Tom Clancy franchise, For Honor, and Assassin’s Creed Origins. Specific sales numbers were not revealed but Origins was the industry’s third best-selling game in EMEA (Europe, the Middle East and Africa) last year. The Tom Clancy communities saw 60 million unique players with Ghost Recon Wildlands becoming the seventh best-selling game in EMEA. The Division also saw player engagement double after its 1.8 update. For Honor was the fifth most viewed new game on Twitch in 2017.
As far as digital revenue goes, over a 9-month period Ubisoft saw digital revenue rise sharply by 75% to €670.3 million. This represents 56.3% of total sales compared with 47.2% the previous year.
“Our very strong third-quarter performance highlights two areas in which we have made major strides,” said Ubisoft co-founder and CEO Yves Guillemot. “First, our games’ live operations are making steady progress. This has fueled momentum for digital and back catalogue, which both hit record highs this quarter. Second, the increasingly recurring profile of our business has had a very positive impact on our new releases. By taking additional time to develop our games, we have been able to deliver three top-quality titles since August, including the grand return of Assassin’s Creed.
“These successes demonstrate that our differentiating strategy of combining long-term investment in our talented teams and our multi-studios collaboration model is paying off. This strategy enables us to deliver high-quality blockbusters while keeping our communities engaged through regular major updates. As a result, Ubisoft is perfectly positioned to reach its targets for fiscal 2017-18 and 2018-19.”
Next quarter, Ubisoft expects sales to come in at around €449.0 million.