Ubisoft Sales Drop As Publisher Posts Losses For First Half Of Fiscal 2016

In a report for first half sales and earning figures, Ubisoft reported a drop in sales and a net loss for the first half of its current fiscal year. Sales slid 57 percent to €207.3 million ($225 million), but came in above the initial targets. The company posted operating losses of €107.8 million ($117 million) and €65.7 ($73 million) in net losses.

The company says that without Watch Dogs in the first half of last year, sales would not have been pushed significantly higher. The games left in Ubisoft’s fiscal year include Assassin’s Creed Syndicate, Just Dance 2016, Rainbow Six Siege, The Division, and Far Cry Primal. A major expansion for the crew will also release during that time.

While there are more game releases in the second half of the fiscal year as opposed to the first half, Ubisoft still anticipates a decrease in sales during the third quarter. But because Ubisoft thinks its full-year sales will remain stable year-over-year, Far Cry Primal and The Division must perform well.

As of September 30, 2015, Ubisoft’s net debt of €155.5 million ($168 million) is higher than their debt levels at this point in the year either of the previous two years (€40.3/$44 million in 2014 and €141.8/$155 million in 2013). This is not welcome news, considering that Vivendi made two unsolicited investments in the company and therefore owns more than 10 percent.

Assassin’s Creed Syndicate released recently to favorable reviews, and Far Cry Primal was recently announced for next year.