Ubisoft Entertainment (EPA: UBI) shares are soaring on Wednesday, up over 9% to hit a record high of €52.98 per share, after the company posted their fiscal Q1 2018 sales. The company’s shares hit as high as €53.19 on Wednesday as the company posted a 45.2% rise in sales, reaching €202.1 million and passing the company’s target of €170.0 million in sales.
Digital revenue is also up 55% to €162.4 million.
The company’s shares are up near 60% since the start of 2017 thanks to the successes of the company’s best-known series of games including Assassin’s Creed and Tom Clancy’s Ghost Recon Wildlands, which was the company’s biggest hit since the start of 2017.
Ubisoft In Bright Outlook
Ubisoft also released their outlook for the second-quarter of 2017 – 2018, with sales expected to reach €190 million on the quarter, up 34% compared to the second quarter of 2016 – 2017. The company has plans for three major releases during the quarter:
- For Honor’s third season will begin
- Mario + Rabbids Kingdom Battle
- Tom Clancy’s Rainbow Six Siege Hong Kong
The company also maintains their full-year sales of €1,700 million and non-IFRS operating income around €270 million.
Ubisoft additionally signed a new revolving credit facility on July 18, 2017, totaling €300 million on a five-year term with an option to extend the line of credit for an additional year. The credit facility will allow the company to refinance €250 million in loans from 2014.
The loan provides the game developer with a longer maturity date as well as better financial conditions.
The credit facility will allow the company to maintain their already solid financials and will allow the company to follow their ambitious development strategy.
Yves Guillemot, Co-founder and Chief Executive Officer, stated, “Fueled by the digital segment – which saw a sharp increase in player recurring investment – as well as a strong showing from our back catalog, our sales for the first quarter of 2017-18 came in well ahead of our targets, up 45%, despite the fact that there were no major new releases during the period.”