One of the biggest gaming giant in the world has just hit its new high last week, just right after posting a big leap in its recent Q1 sales results. Ubisoft has posted an increase of 45.2% in sales in which was a €202.1 million up as well.
Ubisoft’s shares climbed by 9.4% generally in which had helped the company reach new highs with Vivendi recently building up its stake in the company by 27%.
As mentioned above, Ubisoft’s total sales soared to 45.2% to €202.1 million with the help of its digital sales in which had an increase of 55% to €162.4 million largely. This is a success for the company as it recently focused on its digital sector in which accounts to beyond 80% for its revenue – an increase of 5% if to compare with last year’s results.
In further details, the back catalog sales of Ubisoft also influenced the total upgrade in the sales sector. The company was able to provide a 94% upsurge with its emphasis on its client’s recurring investment profile.
It is also reported that Ghost Recon Wildlands by Tom Clancy helped with its total sales as it is currently the top seller game in the current year.
"The new game development at Ubisoft lends itself towards online, multi-player and evolving (rather than static) experiential games – which we see as the sweet spot of franchise longevity, monetization, and higher margins," analyst Neil Campling from Northern Trust Capital Markets told reports.
"We remain buyers of Ubisoft," Campling emphasized.
Co-Founder and Chief Executive Officer, Yves Guillemot, also stated that "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...”
"Thanks to our increasing ability to engage players over the long term, combined with our unique creative strengths, we are even more confident of achieving our targets for 2017-18 and 2018-19. We expect both of these factors to continue being key drivers of value creation in the coming years." Guillemot added.
Ubisoft was able to maintain its performance within its new highs in its recent trades. Generally, the gaming stock added 0.48% in its latest performance which opened at 12.40 and finished at 12.50 with no highs and no lows – just bulls. It is its third bull candle so far since its rise in July 19.
As for its Relative Strength Index, Ubisoft was also marked as an overbought stock as it performed beyond the 70’s region. Currently, it is at 75.43 in which took more than a month to reach the area.
More so, its Coppock curve also rose as well. The stock is inching closer to the 10’s region and was last seen at 9.12. It is unlikely that the indicator would go down so a buy would be much more recommended for the gaming stock.
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