Ubisoft mobile revenue to skyrocket on new mysterious partnership deal

Ubisoft has secured a new high-value multi-year licensing deal with a mysterious partner who will utilize one of their IPs.

1 minute & 55 seconds read time

Ubisoft has signed a huge new licensing deal that is expected to significantly accelerate its mobile earnings.

Ubisoft mobile revenue to skyrocket on new mysterious partnership deal 1

Today Ubisoft announced a substantial partnership that will help boost its mobile presence. The publisher has signed a licensing deal with an unnamed publisher and/or developer to make a new mobile game based on a popular game franchise.

Ubisoft has received an upfront payment that will be recognized this fiscal year and help boost topline growth by 10% year-over-year, but the game won't launch in 2022 and still remains unannounced. Ubisoft will also receive royalties and payments after the game is released. This appears to be a separate deal from the Tencent partnership.

"We also announced today a licensing deal on mobile for one of our AAA brands."

"On top of significantly advancing our mobile footprint for the years to come, it will materially impact our P&L cash allowances for the financial year. We will announce more details on this partnership in due course.

"At the full-year level, we continue to expect significant topline year-on-year growth now above 10%. The bigger driver of this growth will be the partnership,"Ubisoft CFO Frederick Duguet said in a recent Q1 FY23 earnings call.

Likely candidates could include publishers like Take-Two Interactive x Zynga or other major titans like NetEase, who has been snapping up AAA studios and making adaptations of key titles like Diablo Immortal.

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Duguet continued discussing the deal in a response to an analyst's question during the Q&A portion:

"This is a major partnership. It will allow us to increase our mobile footprint for years to come. The partnership is built upon a sizable upfront component that will positively impact the P&L this fiscal year and a revenue share scheme for the future.

"This is a licensing agreement on our IP that includes one game and we will say more in the future. But what we can say is this is not a game that is planned for this year, but an unannounced game that will come in the future."

Here's what Ubisoft CEO Yves Guillemot said in a press release:

"The new high-value mobile partnership for one of our brands reflects the powerful appeal of our brands for the fast-growing AAA mobile segment. It also provides our teams with more time to fully realize their creative vision and deliver high-quality experiences for our fans, while at the same time increasing our visibility for both 2022-23 and 2023-24."

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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