Ubisoft Entertainment SA

PAR:UBI

Earnings Call Transcript 2020-Q1

[Yves Guillemot, Co]

Good afternoon and good morning, everybody. Thank you for joining our conference call. We started the year on the right foot. Our games performed solidly and Player Recurring Investment grew strongly.Notably, Assassin’s Creed Odyssey's performance was outstanding with quite impressive engagement, PRI and sell-through 9 months after its release. The Québec City team has delivered handsomely, and we can't wait to share more about their next game, Gods & Monsters. The quarter also saw a better performance than anticipated for Rainbow Six Siege. 3.5 years after its release, Siege continues to be one of the strongest games on the market. Not only it is one of the top 10 biggest sellers of the past 5 years, it also possesses a rare pedigree. It is a game with an extremely strong core gameplay loop, amazing engagement and retention, great eSport momentum and has a true global appeal reaching a wide audience in Europe, North America and Asia. Only a handful of games in the industry combine those qualities. In a very competitive market for shooters, Siege teams continues to perform steadily and is already seeing the benefits from the revamped production organization they initiated 18 months ago. Our E3 performance was another key highlight of the quarter. Most importantly, the Watch Dogs brand is again top of mind for gamers, thanks to its breakthrough gameplay innovation. Ghost Recon Breakpoint gameplay demo also had a very solid showing. It achieved robust viewership with impactful content creators video and the best sentiment score of any E3 game. Our full year's targets are supported by those positive trends. I will present our E3 performance in more details, but first, Frédérick will review our Q1 highlights. Frédérick?

[Frédérick Duguet, Chief Financial Officer]

Thank you, Yves, and hello, everybody. Our net bookings reached EUR 314 million in Q1, down 18% year-on-year and above our target of approximately EUR 270 million. As a reminder, the year-on-year decrease is due to the absence of a big release during the quarter, and to last year's back-catalog benefiting from Far Cry 5 strong contribution after releasing just 5 days before the end of March. As Yves mentioned, we achieved this better-than-anticipated quarter, thanks to a broad-based performance from our games and PRI. While MAUs for our PC and console games were flat year-on-year, engagement per player increased and reached record levels. On the new release side, as we said mid-May, Anno achieved a record launch including meaningful progression in player engagements. Our back-catalog, down 18% to EUR 273 million, ended up better than expected. While Rainbow Six Siege and Assassin’s Creed Odyssey were key highlights, we also saw a nice contribution from For Honor, Ghost Recon Wildlands and The Crew 2. Assassin's Creed Odyssey solid momentum continued over the quarter. This was spurred by very strong growth in engagements. Over the quarter, we released the first 2 episodes of the Fate of Atlantis story arc. We also launched Story Creator mode, a brand-new feature allowing players to write their own stories. All these events and content updates draws excellent engagement, PRI and sell-through, well ahead of Assassin's Creed Origins last year. And we released yesterday Judgment of Atlantis, the final episode of the Fate of Atlantis story arc. Rainbow Six Siege was the other highlight of the quarter, benefiting from an increased frequency of updates including weekly content drops and cool new creations. The April Rainbow is Magic! event, the new season Phantom Sight in June and a successful eSport event in Milan generated very solid engagement and PRI. While April was challenging, June was remarkable and, in terms of MAU, finished as our biggest month ever. Over the quarter, overall engagement and PRI grew year-on-year. We also signed a partnership with Neowiz to distribute Rainbow Six Siege in South Korea PC bangs. PC bangs are our big segment in Korea and Neowiz is one of the leaders. Starting this summer, this will allow Siege to reach a wider audience in this key market for competitive shooters. Continuing on this positive trends, in early July, we released a new event, Showdown, that had another positive impact on engagement and PRI. With The Division 2, we have delivered a great game with record Ubisoft Net Promoter Scores and engagement per player and a growing PRI versus The Division 1 and Far Cry 5. The Division 2 is the best-selling game worldwide for the first 6 months of the year. For the future, we plan to drive acquisition and engagements with significant post-launch release plan including 3 major content updates available for free to all players. With additional narratives and missions, new PDA mode and new specializations. Episode 1 - DC Outskirts: Expeditions will start releasing on July 23. This major content update will include 2 new main missions, 2 classified assignments and new discovery difficulty setting for the raid and the most demanded adjustments based on our community feedback. We expect it will have a nice boost to global activity and acquisition. Alongside this solid back-catalog performance, PRI was very strong, up 19% to EUR 150 million. This is even more impressive considering mobile revenue was down 24% due to no release this quarter versus the launch of Might & Magic Elemental Guardians last year. This means nonmobile PRI had very robust 32% growth year-on-year. While deferred revenues had some positive impact, most of the growth was generated during the quarter. Total digital net bookings reached EUR 292 million, up 2%. On a platform basis, PC represented 34% of our total revenues versus 24% last year driven by the success of Anno 1800 which performed very strongly on Uplay. Uplay continues its strong momentum, and as announced during E3, we will launch, in September, Uplay+ for PC, a new subscription platform. It will also be available on Stadia in 2020. Uplay+ will allow us to strengthen the direct relationship we have with players by leveraging the breadth of our portfolio which is one of the most diversified in the industry. To conclude on Q1, I would like to mention that according to Glassdoor's annual rankings, which are based on employees' ratings, Yves was ranked third on the list of the best CEO in Canada for 2019. Having such strong employee support for our management is extremely valuable. Talents are at the core of Ubisoft capacity to create amazing games and structural design. Looking at Q2, we expect net bookings at around EUR 310 million, down 15% versus last year. This reflects fewer early physical shipments for Ghost Recon Breakpoint versus Assassin's Creed Odyssey last year in line with the continued digital transformation of the industry. To a lesser extent, it also reflects the late release of The Crew 2 in June 2018 which had a positive impact on Q2. As for the full year, we confirmed our targets with net bookings expected around EUR 2,185 million, up 8% and non-IFRS operating income at around EUR 480 million, up also 8%. Our current back-catalog and PRI trends as well as the performance of our games at E3 are a robust support for achieving those targets. I now hand over the call back to Yves.

[Yves Guillemot, Co]

Thank you, Frédérick. Ubisoft had a successful E3, especially on social media. Ghost Recon Breakpoint benefited from excellent visibility among content creators and record-like ratios among players. The teams' focus on the strong and -- on gameplay session delivered very well as 4 of the 6 most viewed content creator videos were for Ghost Recon Breakpoint. It also reached the best sentiment score in the industry with only 2% dislike ratio. Ghost Recon Breakpoint is seen as a clear step forward for the Ghost Recon franchise and the demo cemented this perception. The breadth of new survival features has been praised for its contribution to the tactical depths of the game. Media, players and influencers also reacted positively to the game's stronger narrative and also Jon Bernthal's presence, whose character is a charismatic antagonist to remember. Ghost Recon Breakpoint targets the military shooter segment, the biggest of all premium shooter segments, and will benefit from a great release window in -- on October 4.Now Watch Dogs: Legion was a huge success also at E3. Media and content creators who had the opportunity to try the Anthem demo praised the never-seen-before groundbreaking play as any one innovation. It enables players to recruit and play as any character from the world. The reinvention of an open world near future London on the brink of collapse was also highly praised. With such a strong reveal, we have reignited the Watch Dogs franchise. Legion garnered more than 65 awards and nominations including Best of Show by outlets like GameSpot, PC Gamer and GamesRadar, Best Action Game by IGN and Game Informer and Best Action Adventure Game by the official E3 game critics. Watch Dogs: Legion will be released on March 6, 2020.We also unveiled the full details of Gods & Monsters and Rainbow Six Quarantine. Gods & Monsters is a new IP developed by Ubisoft Québec. It stems from the research and stories from ancient Greek mythology they studied when creating Assassin's Creed Odyssey. Gods & Monsters puts players on a quest to save the Greek gods in a reverently colorful open-world filled with mythological monsters. The game will be released on February 26.Rainbow Six Quarantine is leveraging the proven gameplay of the critically acclaimed Rainbow Six Siege Outbreak. Quarantine is a full-fledged PvE co-op experience complementary to Rainbow Six Siege PvP and will be launched in the fiscal fourth quarter. Both games generated great interest at E3, and we can't wait to show you more.We also revealed Roller Champions, a new free-to-play PvP action sport game developed by Ubisoft Montréal. It had the strongest performance of any E3 games in terms of streaming viewing time, an amazing performance highlighting its fun and innovative, competitive gameplay. Roller Champions will be released in early 2020.As a conclusion, our games performed better than anticipated during the quarter with strong engagement and Player Recurring Investment. We also saw a robust performance from our games at E3 which gives us confidence for the remainder of the year. With many growth drivers at our disposal, we are ideally positioned to generate strong revenue growth and further increase our profitability over the coming years. We are now ready to take all your questions.

[Operator]

[Operator Instructions] We will take our first question from Robert Berg of Berenberg.

[Robert Berg, Analyst]

Three questions for me, if I can. The first, as you said, really good June, start of July for Rainbow Six in terms of player count, PRI. You also mentioned more content too with the weekly drops, clearly budgeted for the cost of the content in your guidance, the revenues ahead. So I'm not worried about the full year guidance. But how should we be thinking about the relationship, the extra cost versus the extra revenue for these additional content drops? What have you seen so far? What returns are you seeing there? That will be interesting. The second question, on the competitive environment heading into your Q2, a bit of a follow-on from my previous question, I guess. There's no obvious impact that I've seen from your games from recent update from one of your peers, how you're seeing the competitive environment in July, I guess. The third, the press reports of a deal with Facebook for VR. I know that VR has been pretty minimal so far. Could this be interesting? How should we be thinking about the VR opportunity for you guys?

[Frédérick Duguet, Chief Financial Officer]

Thank you, Robert. Yes, on the -- on your first question, what we've seen is that we started to see the benefit of the reorganization that the Rainbow Six Siege team did in terms of reorganizing their production pipelines to be more joined and efficient. And that's been very effective. What we see that we're coming from the situation where they were used to releasing big major updates every 3 months. And they continue to do so but, on top of that, they're coming by fun events every 6 weeks, be more creative, and we also come with smaller content drops every week. So all of these show the agility of the team. But because they've been working on improving on the engine adaptability as well, it's being pretty efficient. So that's how we see the evolution of the Rainbow Six team, and that's also pretty inspiring for other teams.

[Yves Guillemot, Co]

Now for the July month, the competitive environment is strong, but we're happy with how our games are succeeding. So we are not -- we don't see a big pressure from the competition at the moment.

[Frédérick Duguet, Chief Financial Officer]

What we've seen is that June for Rainbow in particular was a record month in terms of MAUs. And then just at the very beginning of July, we came with Showdown. And it had a strong positive response from players, so it had been building on the momentum of June. But July has started to -- off to a good start so far.

[Yves Guillemot, Co]

And on the VR side, we think that seamless, frictionless and good entry prices and good games could help this business to take off because it provides a good immersion for players, but we need to make sure those elements are there to make it actually grow.

[Operator]

We will now take our next question from Nicolas Langlet of Exane Paribas.

[Nicolas Langlet, Research Analyst]

Two questions from me. The first one on The Division 2. How is the game trending versus The Division 1? And notably, are you happy with the monetization level? And second question on the mid-term net booking growth, given your view on the industry growth potential, the increase in cash R&D spending you plan for the coming years and what you have in your pipeline, do you think you can maintain a double-digit net booking growth in the coming years? Do you think it's feasible?

[Frédérick Duguet, Chief Financial Officer]

On Division 2. Division 2 did in line with our targets in Q1. Today, we rely on a strong core audience and with a record level of engagement per player, so higher than Division 1 actually. And as we said, PRI is up, relative to Division 1. What we -- what is important for now is that we're coming with a massive post-launch program that is meant to further drive acquisition and to bring the game to activate players that were eager to get more content. So that's the whole idea behind this post-launch program that will be available for all players. So that's why we believe that Division 2 will be a strong performer in fiscal '20.

[Yves Guillemot, Co]

And we have the first episode coming the 24th of July, so in a week.

[Frédérick Duguet, Chief Financial Officer]

In terms of mid-term net booking growth, yes, we expect a stronger growth on the top line, and we -- it means that it will be a double-digit growth over the next years. That will come with improvement in our operating margin. Okay. And just to complete our answer on Division 2, it's -- the post-launch program will be a bigger one than what we used to have on Division 1 at that time.

[Operator]

We will now take our next question from Michael Ng of Goldman Sachs.

[Michael Ng, Research Analyst]

Great. Could you talk a little bit about your expectations for PRI pacing throughout the rest of the year in fiscal '20? Should we expect this nearly 20% year-over-year growth that you realized this quarter to continue throughout the year? And what are some of the key PRI drivers for the rest of fiscal '20 that we should be aware of?

[Frédérick Duguet, Chief Financial Officer]

So for the year, we expect solid growth on PRI which means that we expect actually a strong growth on the PC and console side, keeping in mind that we assume that mobile would be lower than last year as we have fewer -- lower impact from new releases on mobile than last year. So yes, we are starting on good basis in Q1. I'm not going to give -- tell you that we confirm the same percentage over the remainder of the year. But the fact that Rainbow and Division and Assassin's Creed Odyssey, on top of the rest of the catalog doing very well on PRI over this first quarter, bodes well for the rest of the year.

[Yves Guillemot, Co]

Yes. On top, we had a good Ghost Recon Wildlands PRI. So the new Breakpoint will also be on the same vein.

[Frédérick Duguet, Chief Financial Officer]

Yes. For Honor also did well and The Crew 2.

[Michael Ng, Research Analyst]

Great. And one follow-up if I could. My understanding is Rainbow Six Siege is largely a PvP game, but there have been some PvE events like Outbreak. How many Rainbow Six Siege players play those PvE events like Outbreak? I'm just trying to understand what that experience taught you about the potential demand for Rainbow Six Quarantine?

[Yves Guillemot, Co]

There's a huge demand for -- from Rainbow Six players to have PvE, and this event was really the biggest event on Rainbow Six when it was launched in March last year. So we think it's -- there are really a good percentage of the players that will come to this plus players that didn't want to play PvP that will be coming back to the brand via the PvE. So -- but what we can say, we can't give you numbers, but we are very optimistic on the fact that it can be a good driver for either people that love the brand and couldn't -- didn't want to play PvP and the people that play PvP actually.

[Frédérick Duguet, Chief Financial Officer]

We are very happy to come with a complementary type of gameplay on the franchise, and we believe that with a more accessible gameplay, that will also bring new players into the franchise.

[Operator]

We will now take our next question from Charles Scotti of Kepler.

[Charles-Louis Scotti]

Three questions, please. The first one on Rainbow Six Siege. It seems that the game has benefited from the collapse of Apex in Q1. And did you see any impact from the release of the Season 2 of Apex Legends on July 2? Second question still on Rainbow Six Siege. Can you update us on the approval process of the game in China? And my last question is on the audience. I'm not sure that I have well understood what you said during the call. MAU were flat in Q1, right?

[Frédérick Duguet, Chief Financial Officer]

Yes. MAU overall, you mean, were flat in Q1 but the engagement per player has been increasing and actually achieved record levels for the quarter -- for the group.

[Yves Guillemot, Co]

Now for China. We can't share more news on that. It follows the normal process, I would say.

[Frédérick Duguet, Chief Financial Officer]

On the impact on -- of competition, I have said that what we've seen in early July, as I said before, the release of Showdown draw very positive reaction on our side in terms of activity and in terms of engagement and PRI. So, so far so good for rainbow relative to the competitive landscape. Having said so, we stick to the -- what we said back in May for the full fiscal year guidance for Rainbow meaning that we have factored in potentially strong competition landscape for the full year. So we'll have to look at how things evolve. So far so good.

[Operator]

We will now take our next question from Ray Stochel of Consumer Edge Research.

[Raymond Leonard Stochel, Analyst of Entertainment]

Can you all talk broadly about Net Promoter Score trends across your titles? Anything that's particularly standing out? And if possible, compare that either versus peers on either Net Promoter Score or similar sentiment metric, and whether or not you guys have seen improvement in any of your titles over the last several years.

[Frédérick Duguet, Chief Financial Officer]

Yes. We -- that's one major point that we've seen over the last years which is continuous improvement of the consumer sentiment. Because we've been continuously investing in the post-launch program of all our live games even when we had to face some difficulties some years ago on some of our games, we showed strong commitment. And we've seen stronger progression of sentiment across all the portfolio due to also the fact that we focus in delivering high quality on the launch of the game as well as then in delivering constantly post-launch content of quality across the portfolio. We've also had to do strong work on everything that was related to infrastructure, server, player experience. And that has been a learning curve over the years. And that's driving a lot of good feedback that we follow on a weekly basis.

[Yves Guillemot, Co]

And we haven't seen everything yet because i3D is -- we are starting to use more and more their infrastructure, and this is going to help us a lot to improve the ping of all the -- all our players. So we will have -- we will continue to improve the service over time.

[Frédérick Duguet, Chief Financial Officer]

Yes, as well as protecting our servers from any security elements. So that's very positive for us in the long term.

[Yves Guillemot, Co]

Yes. i3D is the last acquisition which did impact.

[Frédérick Duguet, Chief Financial Officer]

Back in December.

[Operator]

We will now take our next question from Ken Rumph of Jefferies.

[Kenneth Charles Rumph, Equity Analyst]

Three questions. Firstly briefly on PC. Was all of the percentage increase Anno or was -- is there an underlying increase in adoption of PC for you? The second question, you had a sale event in July that's common theme and some other platforms. I wasn't sure whether it was a new thing for you seasonally to do that and whether that -- it should be something that we should be aware of from a revenue point of view? And finally, Uplay+ launching mid-September I think initially free. I'm just wondering will that therefore affect revenues. Will it affect deferred income? And in fact, if it's free to begin with, will it even not affect revenues until later? Just wondering how the kind of revenue recognition will work on Uplay+.

[Yves Guillemot, Co]

Yes. So the 34% was also pushed by Anno which is a PC-specific game. But even with that launch, we had a very good performance on PC overall.Now on the Uplay+, it's coming along well. We don't expect the 3 months of September to have a mega impact on our back-catalog because it's only 1 month for the people that will not pay afterward. So it will certainly make lots of people discover our games. And then after, they will decide if they jump in and pay the first months in fact.

[Frédérick Duguet, Chief Financial Officer]

On the sale event in July. Yes, we've had some promotion but it's pretty common in Europe which we do on a different platform. That's the beauty of the digital flexibility that is offered regularly. But nothing particularly on this very event.

[Operator]

We will now take our next question from Nick Dempsey of Barclays.

[Nicholas Michael Edward Dempsey, Research Analyst]

I've got 3 questions, please. So just picking up on what you said earlier about good PRI for Wildlands and the impact on Breakpoint. Does your recent experience with Wildlands therefore make you more optimistic than you were at the start of the fiscal year when you set your guidance above the PRI contributions for Breakpoint this year? And secondly, just about guidance for the year. I mean you started off the year, I guess, worrying whether Cyberpunk would land in the middle of your Q4, your big launch quarter. You've now had a Q1 which is comfortably better than you were expecting. So can we claim from that, that you feel more comfortable by your guidance than you did when you set it?

[Frédérick Duguet, Chief Financial Officer]

So on the PRI side, what we -- I -- the good start from Wildlands in the first quarter is, of course, good news. It's -- what -- it doesn't really change what we anticipate for Breakpoint. We believe Breakpoint will be stronger than Wildlands on the PRI side overall. Why? Because it's coming with PvP from the very beginning, while it was not the case for Wildlands. So we could have -- we can have a stronger fan base that we can build upon from Breakpoint, and we will come with a 2-year post-launch program that would be even bigger than on Wildlands. So that will be supportive of stronger PRI for Breakpoint. But of course, it's good to see that Wildlands continues to do well. On Q4, yes, it's good news that Cyberpunk is not in the quarter, but we will stay cautious on this. We stick to our assumption that we might have a strong potential competition in Q4. The key point for us was really to have a fantastic review with Wildlands at Q3, and that's what we achieved, so coming with such a strong industry innovation. So that supports our guidance, and we believe that our guidance across our game in Q4 is a good reflection of all the potential of the games and of the potentially strong competition there.

[Operator]

We will now take our next question from Doug Creutz of Cowen.

[Douglas Lippl Creutz, Managing Director and Senior Research Analyst]

You guys talked about how your engagement with Assassin’s Creed has been strong pretty deep into the game cycle. I think you just released your last planned DLC for the game this week. Given how strong it's been, any appetite for the DLCs for Odyssey, or do you need to now kind of move -- shift your development resources towards the next title?

[Yves Guillemot, Co]

Yes. So we are shifting the development to other project, and that team particularly is working on Gods & Monsters. We are very happy with what they have been able to achieve with Odyssey. And what is -- to consider is that they just released a Story Creator mode that is going to help players to create content. And we are also going to come with the discovery mode in September. So there's plenty to come again on Odyssey. And they are working very hard on Gods & Monsters and I think this will be amazing.

[Frédérick Duguet, Chief Financial Officer]

It's been great. Sorry.

[Operator]

We will now take our next question from Julia Matoshchuk of Morgan Stanley.

[Julia Matoshchuk, Equity Analyst]

The first one is regarding your Q2 guidance. [indiscernible]

[Frédérick Duguet, Chief Financial Officer]

Julia, we can't hear you.

[Julia Matoshchuk, Equity Analyst]

Sorry, guys. Can you hear me now?

[Frédérick Duguet, Chief Financial Officer]

Yes.

[Yves Guillemot, Co]

Yes, perfect.

[Julia Matoshchuk, Equity Analyst]

Great. Sorry. The first question is regarding your Q2 guidance. So you mentioned that it includes early shipments of Ghost Recon Breakpoint, but to a lower extent than what you had on Assassin’s Creed. So is it right to assume that, internally, you assume that Ghost Recon is a smaller game than Assassin’s Creed? So that's the first question. And the second, can we have a bit of guidance on what you expect regarding profitability in the first half of the year?

[Yves Guillemot, Co]

Yes. So on Ghost Recon, as it is a multiplayer game, the digital part will be actually stronger than on Assassin’s Creed types of games. So that's why we have less units sold in those. So it doesn't mean at all that it would be different from the other game.

[Frédérick Duguet, Chief Financial Officer]

For H1, yes, we really don't guide on the first half. To help you model anyway what you can anticipate for this first half, as you know, we have a year that is much more back-loaded on the second half. For the first half, we're coming with lower impact from new releases. And so that's why we guided for net booking to be down by EUR 120 million or so. We can anticipate that we might have some increase in direct costs. So of course, that will lead you to model for a lower EBIT than last year.

[Operator]

We will now take our next question from Jeff Cohen of Stephens Inc.

[Jeffrey A. Cohen, Analyst]

So I know there's been some backlash from the gamer community around the epic game store and some of the exclusive deals that they've signed. I was curious if you could provide some color around sales of Division 2 on that platform maybe against your expectations?

[Yves Guillemot, Co]

We can't give much information on that because we have been with them for a short time now. What we can say is we are working very well hand in hand to make sure we can grow the sales directly now between our Uplay store which is doing extremely well and Epic store that is growing step by step. So overall, when you take Uplay and Epic store, we are very happy with what we are achieving.

[Frédérick Duguet, Chief Financial Officer]

We did well on the Anno 1800 on Epic, but the key point here is really that we continue to have a very strong momentum on Uplay.

[Jeffrey A. Cohen, Analyst]

And then as a follow-up, could you maybe talk about the additional R&D spend required to bring a game to Stadia versus traditional consoles? And then maybe if you could just discuss your expectations for platform commissions on Stadia versus the PS4 and Xbox?

[Yves Guillemot, Co]

Yes. The cost -- the extra cost for -- to port -- to make sure the games work well on Stadia is not that high. It's part now of our pipeline, and we have a good relationship with Stadia to make sure it is profitable for us. Now we are not speaking about 2.0 types of games that will need more work. And this we will see more in the future actually.

[Frédérick Duguet, Chief Financial Officer]

As for the...

[Jeffrey A. Cohen, Analyst]

Congrats on the strong start to the year.

[Frédérick Duguet, Chief Financial Officer]

On the platform commission, we will let Google talk about it. What we can just say is that the financial equation is good for us.

[Operator]

[Operator Instructions] We will take our next question from Tom Singlehurst of Citi.

[Thomas A Singlehurst, Director and Head of European Media Research]

It's Tom here from Citigroup. Forgive the slightly crunchy voice of people. 2 questions both slightly general in nature. The first was with respect to Uplay+. Just wonder if there's anything you can share in terms of market state or anything like that. Just around whether you anticipate sort of target audience for Uplay+ to be existing gamers, gamers or to be new gamers. I'm just trying to work out how adequate that will be or whether it's going to be cannibalistic [ in 3 different places ]. So that was the first question.Second one was just a broader one on industry consolidation in the fourth -- in the last couple of weeks, both about Sony and the Facebook considering sort of acquisitions of a video game publishing. So just wondering whether you have a general view on both vertical integration whether that's a risk or an opportunity to yourselves as we see the market consolidate.

[Yves Guillemot, Co]

Thank you for your questions. In fact, on Uplay, we -- what we like, Uplay+, is that we have a fair amount of new players that are coming to this new offer. And it's really part of our strategy to offer players many ways to get -- to play our games. So we will have a majority, yes, of the usual suspects to come. But we are very happy with the new ones that are coming, and that will be also part of the new gamers in our universe and will be able to actually try all the different types of games we create. So they can, after that, spend more times on our games.So on Sony and Facebook acquisitions, I think it's -- what it shows is that content is key. And that as Ubisoft being able to create high-quality content, we are a good player of the industry and so we can do more things with them. And Sony, Facebook but also all the players of this industry, and that is actually a good thing. Now on the acquisition, I think we can't say much about that.

[Operator]

There are no further questions over the phone at this time.

[Yves Guillemot, Co]

Okay. So thank you very much, everyone, and have a good evening or a good morning. Thanks again.