Q3 19/20

Feb 6, 2020

Earnings release

Good afternoon, and good morning, everybody. Thank you for joining our conference call. While we are having a challenging year, it was great to see that our numbers in terms of active players, MAUs and PII on PC and consoles were stable at a high level during the past quarter. As Frederic will mention later, this reflects the amazing progress in overall engagement we have achieved over the years. And we are not standing still. Over the past few months, we have applied several changes to our organization. We have reinforced our editorial team to be more agile and better accompany our development teams. We have also brought additional seniority at the quality control level and a deeper integration of consumer research in our product pipeline to ensure solid differentiation for all our titles. All those actions will allow for an even stronger focus to ensure the best possible quality and strong marketability. As always, we will adapt our organization on an ongoing basis. Looking at next fiscal year, we are excited by the prospect of our lineup. The competitive environment will be challenging, but our production is progressing well, and our games will benefit from strong differentiation pillar. We also believe we have a well balanced, solid schedule plan. It is not the first time we have had many releases in a given year with 5 AAAs in financial year 'fifteen. Since then, Ubisoft has continued to scale, and the market continues to absorb multiple successful releases every year. As a consequence, we are confident we will maximize both and marketing efficiency. And the year will not be limited to those 5 games as we will also release titles with deep social layers like Roller Champions. We can't wait to show you more. Looking forward, the potential of the video game industry is immense. As an industry, we are finally reaching a mainstream audience, and we are taking a bigger and bigger share of players' leisure time. This is driven by the combination of games' unique mix of deep and always renewing social experiences, amazing and everlasting content creation from players, constant feedback loop from our communities to grow our games and outstanding accessibility multiplicity of platforms and business models. And this accessibility will be further enhanced by the rise of streaming in the coming years. To deliver on this massive opportunity, we already are leveraging the deep investment we made in our direct to players offering over the past 10 years. Our return on investment has been significant and has allowed us to massively grow players' time spent in our console and PC games. From 2,000,000,000 hours in 2016 to 4,500,000,000 hours in 2019. In the same time frame, our teams built the following foundation assets. 1st, deep and amazing content. In this generation of consoles, we have launched 5 profitable new IPs. We have successfully transformed the Assassin's Creed franchise. We have delivered consistent growth for Far Cry and Rainbow Six Siege, one of the top 10 biggest games and e sport titles over the past 5 years. We have also executed the deep repositioning of our portfolio of franchises with now a strong footing in RPG and multiplayer, including co op, PVP and Esports. 2nd, digital transformation of Ubisoft. We now have a recognized expertise in operating life services and in delivering to our thriving communities impressive roadmaps of content updates for multiple games. 3rd, our own services platform, Uplay, fully integrated in all PC, console and streaming sites. 1st, Uplay is also a significant part of our direct to players offering and is our 4th biggest digital platform in terms of revenue. 5th, a scaled production capacity with strong collaboration patterns and a loaded corporate culture. This culture is an amazing asset to attract and retain the best talent. 6th, technology and IP ownership that offers us leverage in the context of the growing number of presence on multiple platforms. Much remains to be done. We are notably laser focused on enhancing the social layers in our games. Still, with video game publishers set to capture a growing share of leisure time and with Ubisoft's strong foundation of dependable assets, we believe we are ideally positioned to create great value for our players everywhere and on every platform over the coming years. So I will now let Frederic detail our Q3 performance. Thank you, Yves, and hello, everybody. Our Q3 net bookings reached €456,000,000 down 26% year on year at constant exchange rates and above our target approximately €410,000,000 As a reminder, the year on year decrease mostly reflects a lower performance for cost recall breakpoint relative Assassin's Creed Odyssey as well as to a lesser extent the launch of StarLink last year. Around half of this better than anticipated performance has been driven by our back catalog games, notably Rainbow Six Siege, Assassin's Creed Odyssey, Duck Crew 2 and Mario Rabbit's Kingdom Battle as well as by the release of Just Dance 2020, which grew nicely. The high and stable level of unique players, MAUs and PRI on console and PC during the quarter was remarkable. It reflects the depth of our portfolio and the amazing progress in overall engagement we achieved. The other half of the outperformance was driven by a partnership signed during the quarter and which originally expected to be accounted for in Q4. The Gulf Recon Breakpoint team is working hard to fine tune the experience with each update. As of now, we have provided 4 title updates, which include bug fixing and new content. Our last update brought the Terminator with the release of a free event featuring new environment, enemies and dialogues inspired by the original Terminator movie from 1984. As a result, we saw a nice uptick in engagement over the past week. Our next update coming soon will offer players the ability to personalize how they experience Ghost Recon Breakpoint, adapting it to their preferred play style. As I mentioned earlier, we have been pleasantly surprised by Just Dance 2020. We sell through well ahead of Just Dance 2019. This can be attributable to a great tracklist with some of the hottest billboard songs of 2019 and a perfectly delivered marketing strategy. One of the most striking example is what we achieved with our partnership with Billie Eilish. In the U. S, it resulted in one of the biggest challenges in TikTok history, bringing total views of JustDandsMoves content to an impressive 4,000,000,000. Euros Over the 1st 9 months, total net bookings reached €1,117,000,000 down 19% year on year at constant exchange rates. Over the same time frame, our back catalog net bookings reached €765,000,000 down 9% due to a high comparison base last year, which had seen the strong performance of our cry fi. Brembo 6 Siege is fully benefiting from its increased update frequency and constant flow of new ideas. Continues to attract many new players and pass the 55,000,000 registered players mark in January. Engagement was up nicely during the quarter with record MAUs for a month of December, an amazing performance of 4 years after launch. As a consequence, PRI grew strongly this past quarter and the year on year growth has even been accelerating versus Q2. Additionally, peak daily average revenue per user reached a record level twice during the quarter. On the Esports team, confirming its growing influence, Rainbow 6 was ranked 7th most impactful PC game in calendar Q3 by the Esports Observer. We organized in November our 1st global event in Asia, which saw a 60% increase in viewership on Twitch and YouTube Asian channels. January saw the successful launch of our Road to 6 Invitational 2020 event with a dedicated map, amazing trailer and our 1st full battle pass, which offers a free and a premium reward tracks. All have been very positively received, which led to another record in peak daily average revenue per user. This bodes very well for the upcoming 6 Invitational Esports events to be held in February in a sold out venue full of fans during which we will be unveiling exciting new things. Benefiting from its RPG transformation, Assassin's Creed Odyssey has continued its winning streak during Christmas even without a new content update. Total sales through daily player engagement and TRI for the 1st 9 months of the year are respectively up around 50%, 60% and 140% versus ASSAIN Street Origins last year. We also saw a solid performance across the whole franchise, notably from Origins. Concerning the Division 2, we released 8.002 Pentagon: The Last Castle in October with major improvements that had a nice impact on daily activities. We will release Episode 3 this month, kicking off a new narrative thread with new missions bringing players to Coney Island. More news in the upcoming weeks, so stay tuned. The Crew 2 benefited from the release of the Blazing Shots 3 update in November. And in December, the game saw its biggest month of activity ever with record MAUs driven by the weekly Sunday's events. Molhalla, our free to play game, supports cross play between PS4, Xbox 1, PC and Switch since October. The team is also working on a mobile version for 2020. The game enjoyed a strong momentum in Q3 with December the best months we have had to date and a new record in daily active players last weekend. Over the 1st 9 months, total digital net bookings reached €889,000,000 down 1%, representing 80% of our total net bookings. TRI was up 7% to €474,000,000 representing 42% of our total net bookings. Excluding mobile, PRI was up 14% over 9 months. On a platform basis, revenues from Uplay continued to grow very strongly, up 73% and represented more than 40% of our PC net bookings. As highlighted in prior quarters, our mobile business continues to have a quiet year on the new releases and partnership side. As a reminder, our Q3 mobile revenue last year were positively impacted by our licensing business in Asia. Among new releases this quarter, Raymond Mini ranked in the top 20 most downloaded games on April Arcade in 2019. Additionally, we released Might and Magic: Era of Chaos in the Western markets in November. The game has had a great run-in China with over $200,000,000 gross revenue since launch in 2017. Finally, we announced 3 days ago that we reinforced our position in the idle games with the acquisition of Calibri Games. The studio is recognized for the longevity of its flagship game, Idle Miner Tycoon, which is a unique asset in this segment. Calibri will bring us its great expertise in live mobile operations and will allow us to build synergies on the user acquisition side. Looking at Q4, we expect net bookings at around €333,000,000 down 50% versus last year. As a reminder, the vast majority of the drop is explained by a strong release scheduled last year with the launches of the Division 2 and Far Cry Nudon. As for the full year, we are confirming our targets. Net bookings of approximately €1,450,000,000 and non IFRS operating income between €20,000,000 €50,000,000 We also confirmed our targets for fiscal 2021. Net bookings of approximately €2,600,000,000 and non IFRS operating income of approximately €600,000,000 As mentioned in October, fiscal 2021 will benefit from a great lineup and continued growth in PRI, Asia and PC. We expect 3 of the 5 AAAs to be released in fiscal Q3 and 2 in Q4. This is a slightly different release mix than what we had originally anticipated back in October. These kinds of adjustments are part of all publishers' normal timing processes, especially this early in the year. This evolution is not related to competition as it is always moving. We can confirm we have a good visibility on the quality of our games at launch, and we believe this new template will maximize our game's potential. We will provide more information in May at the time of our earnings publication. I now hand over the call back to Ives. Thank you, Frederic. We are confident of our fiscal year 2021 lineup. We'll deliver amazing experience to players. E3 would be a great opportunity to demonstrate the quality and potential of our upcoming lineup. We will also benefit from the arrival of the new generation of consoles, which will be a great catalyst for the industry momentum in 2020. With the immense opportunities offered by our industry, we believe our focus on continuing to build amazing content and our direct relation with players would significantly grow our audiences and players' recurring investments. As such, we expect to continue to create major value for our communities, employees and shareholders over the coming years. We are now ready to answer your questions. Our first question comes from Nicholas Langert of Exane. Please go ahead. Your line is open. Hello. Good afternoon, everyone. I've got 2 questions, please. The first one on the editorial team change. So you mentioned this change. And from an internal point of view, how big is this change? And when do you expect to see the first benefit of it? 2nd question on the player recurring investment. So excluding mobile, it was fairly stable in Q3. You mentioned growth acceleration for R6, good performance for ACODC. So interested to understand what was the offset in Q3? And then looking at Q4, how do you expect the PRA trend to evolve? Because on one hand, you will have F6 probably still a good momentum, but the comparable basis will be quite difficult. So just interested to see what do you expect on that. Thanks. Thank you for your questions. So on the editorial team, we had to make it evolve and increase the number of seniority in the team because the number of project they had to follow and the size of the games were growing all the time. So we increased the number of people and it's now well organized to follow all the flow of future games that is coming. So we will see a certain number of results in the coming years. We have to remember that this team has been extremely powerful in bringing 5 new ITs in the last 5 years and has proved to the industry that he was able to create very high quality gains. Now we are making it evolve as a natural evolution of the team. In terms of impact, we can say that it's of course an evolution and changes that is important for the medium to longer term for the company, but we expect the first benefits to happen this year. Nicolas, to your question on PRI in Q3. So yes, when we look at Q3, we've seen excluding mobile that it's been flat, which considering the comparison of Gauss Recon versus Assassin's Fiat OR DC is a remarkable performance, I will say. Rainbow has been growing. It's true to say that its growth has been accelerating. And we've seen the impact of regular events and high quality collections impacting very positively the performance of Rainbow. So we're happy to see a good momentum. So beside the fact that in terms of PRI, SSN Credit Su was bigger last year than Rainbow than Ghost Recon White Point this year. We also need to take into account the fact that last year we had released March in Fire that was an expansion on For Honor and that we didn't release the same equivalent content on For Honor this In terms of Q4, yes, we see the good momentum with again Rainbow 6 Siege. The implementation of the full battle pass package with the Road to 6 Invitational is very really promising. We've seen active player and engagement growing strongly in January related to last year with an even stronger growth on PRI. Now we of course need to wait until the Road to 6 Invitational is completed to analyze the impact of the different components, but so far so good. So in terms of Q4 PRI, beside this expected strong performance of Rainbow 6 Siege, we should expect a lower PRI due to the fact that last year we had released the expansion of Far Cry New Dawn. And we also expect, of course, Gulf Creek on breakpoint at this stage in terms of PRI contributing less than assets in Philadelphia DC. All right. Okay. Thank you. Thank you. Our next question comes from Charles Foti of Kepler. Please go ahead. Your line is open. Yes. Hello, good evening. I've got 3 questions. The first one on Rambus Exceed, can you share with us some data points on the recently released paid battle pass such as the attach rate, the conversion rate of the battle pass? My second question on back catalogs net bookings. It declined high single digit in Q3 and your Q4 guidance suggests another high single digit decline in my view. Shall we expect the same magnitude next year? And my last question on the pipeline for next fiscal year. If I remember correctly, you were supposed to release 3 AAA games between July December, so it means that at least 1 AAA game has shifted from 1 quarter to another. So can you give us a little bit more color on that? And how do you feel confident on your new release net bookings forecast for next year? Thank you. I'll take the first question, then Frederic will take the two others. On Rainbow 6, as it is the beginning for the Battle Pass, we can't give you more information at the moment. We will know a lot more after our 6 Invitational where the battle pass will actually end. So it's too early to give you too many too much information now. On the back catalog, yes, you're right. It's a high single digit decline in Q3. And yes, we can expect about the same decline into fiscal 2021. In terms of the lineup for next year in terms of AAA games, yes, we are very happy in terms of the visibility that we see on the development of each and every game. All of them are coming with strong element of differentiation, strong promises and identity, which as we said earlier, we think is important to sustain a stronger marketability. We think this game then has all it takes to target important audiences in a distinctive and efficient manner. Now it's we have revised the date for one title to move it to Q4. And we think that as we said earlier in the call, this new template will allow to maximize the potential for each and every of these gains. Okay. Very clear. Thank you very much. Thank you. Our next question comes from Robert Berg of Berenberg. Please go ahead. Your line is open. Yes. I have a few questions if I can. Apologies for the obvious one. You did have a nice Q3 beat. And even with the timing of the partnership revenues you mentioned from Q4 to Q3, you're reiterating the full year. Anything we need to be aware of here? Or do you still factor in your normal level of prudency? And also, would you be able to give, follow-up to that, some more details on that partnership? You mentioned just what it is effectively. And then on the back catalog, we have had some delays of competitors' titles. Do you think your back catalog particularly Rainbow Six can actually benefit from the shift out of competitors' titles? Do you see that going forward? And then just a quick follow-up again on your last the last question there on the timetable for your releases. I think you said the 3 delayed gains were the 3 to come out in Q2 and Q3. Was it one of these gains that you're now saying has shifted into Q4? So on the guidance for Q4, yes, we will say that we think our guidance is reasonable. It's right that we've been happy to take some advance on the catalog in Q3, keeping in mind that like you said half of the over performance is due to this partnership that we move forward to Q3. For Q4, so we think it's a reasonable guidance. As always, it's an important quarter for Rainbow and it's starting well with good month of January and a promising road to 6 invitational. It's true to say that competition is pretty light for this coming quarter. And now in terms of perspective, we still need to stay cautious on the numbers on the cost recon breakpoints. As you know, we've come in the course of 2020 with different answers to the feedback of the players and the next update will be the first answer relative to the some of the important feedbacks we got back in October. But we need to wait until we see a positive shift to the community Goss Recon. In terms of partnership? What we can say is that it's part of the deals we do more and more now with platforms. And there are more and more people now that are taking our products like we did deals with Epic, with NVIDIA, with Google and other parties. And it's something that is more recurrent now in our business. And it's really creating a higher future for the industry and for our brands. And yes, it's very important to see that we have we see the growing value of our brands and that really helps us value our diversified catalog vis a vis a higher number of partners platforms and into more territories and geographies. To your question on the back catalog on Rainbow in Q3 vis a vis competition, we see that if we think about Assasin Street or DC and Rainbow Six Siege being among the best over performers, it's really again tribute to the quality of these brands. Rainbow Six Siege, as we said previously, has accelerated the number of events and that's really allow us to bring a high quality collection for each event. That's why we bet new records in terms of revenue per user at Halloween and then Christmas. We've seen a constant acceleration of PRI and that goes together with a stronger growth also over time of viewership. So this shows that I think the success of Rainbow is really coming from the work of the team. And on the third question on the lineup, so yes, we moved the title to Q4. I would say that it's not surprising that early in the year, we adjust our release schedule to optimize the window for each and every game. This is indeed one of the delay games from the fiscal 2020 that we moved to Q4. And we see that today the development of these games including this one is very promising. Thank you. That's perfect. Cheers. Thank you. Our next question comes from Michael Ng of Goldman Sachs. Please go ahead. Your line is open. Great. Thank you very much for the question. I just have one for Yves and one's for Frederic. Yves, could you just talk about the prospects for horizontal and vertical consolidation in the video game industry? And then for Frederic, I was just wondering if you could tell us a little bit more about the contribution from Green Tanda in the quarter on the mobile side and your expectations for Calibri Games? Thank you. Thank you for In fact, so the industry, as you can see, is growing a lot now with as it's becoming more and more mass market. And there will be plenty of opportunities for us to consolidate in buying companies. They will we feel that they will be more and more opportunities to do deals with all the different platforms to actually enhance the size of our brands. Now in terms of consolidation of AAA players, We don't see that many happening soon, but we will keep watching at what how the business is growing. Frederic, maybe for Yes. So on the Green Panda and Colibri, yes, we're happy to have 2 leading companies of the idle segment now in at Ubisoft. They are very complementary because Green Panda has proved its capacity to hit many releases, hit releases very regularly. And they have disputed expertise in terms of user acquisition and monetization. And COLIBRI is a completely different animal because it has a very long tail, very strong focus in terms of operating services. And that's why this game has probably one of the biggest, if not the biggest, living cycle in this segment with also strong and growing expertise on in game monetization. I'm not in a position to give you the right detail in terms of contribution for Green Panda, but it's doing well. As for Colibri, what we can say is that in 2019, net booking was around €40,000,000 And as we always do, we are looking at companies that are bringing operating margin that are well ahead of Ubisoft operating margin, taking Thank you. Thank you. Our next question comes from Ken Rums of Jefferies. Please go ahead. Your line is open. Hello, gentlemen. Three questions, if I may. Firstly Our next question comes from Ken Rumf of Jefferies. Please go ahead. Your line is open. Hello, gentlemen. Three questions, if I may. Firstly, you referred to Uplay being now your 4th digital platform. I presume you're comparing it to, say, Steam or the Xbox Digital Store, PlayStation Store, that kind of thing. Secondly, Asia is a smaller proportion of sales. Is that simply an effect of a comparison with a year with more new launches and therefore that new launches have a higher Asian component, whereas back catalog and live operations have a more Europe and America orientation? Or is there some other trend? And finally, on the subject of China, you have operations there. Obviously, the game industry as a whole, a lot of our creation work is done in China. How long do you think disruption would have to go on nationally in China for that to begin to potentially impact game schedules? Thank you. Thank you for your questions. So yes, Ubisoft is the 1st digital platforms. When we look at the other platforms like PS Plus, PSN, Microsoft and Steam. So that's where we were able to be. On the China front, it had some effects on us because we have our studios closed for a week now. They will reopen only next Monday. But at the moment, it's easy to handle. Now we don't know what's going to happen. What you can expect is that we will be able to work with all the other studios we have in case it's too long. As for your question on Asia, so our Asian business is doing well across the board. Japan is progressing well where e sport is picking up for rainbow in a nice manner. And China is our 5th biggest community for rainbow and Assassin's Creed. Now in terms of comparison versus last year, as reminder, we had signed some licensing and partnership agreements last year in Asia for on our mobile business and that what affects the comparison relative to last year. Okay. Thank you. Thank you. Our next question comes from Matthew Walker of Credit Suisse. Please go ahead. Your line is open. Thanks a lot. So just in terms of the game schedule now, you're saying is it 3 in Q3 and then 2 in Q4? 2nd question is, we've noticed that there's been a bit of progress on Beyond Good and Evil 2. Is that going to be 1 of the 5? Or is that considered is that it's supposed to be coming soon, so what does that actually mean? Is it an FY 2020 release? Is it an FY 2021? If you give a bit more detail there. And then lastly, obviously, something didn't quite work on the consumer testing process for Breakpoint. How have you improved the testing process since that happened? And obviously, there were conflicting signals from the testing process around, say, RPG elements. How do you know what signals to pay attention to? Because you wanted to introduce RPG elements and that didn't quite work. How do you handle those signals when there's something you want to do, you think it's the right thing to do, but the feedback from the community is saying, no, we don't like that? Okay. Thank you for your questions. So yes, 3 games in Q3 and 2 games in Q4. On VGA 2, we can't give you more information except the fact that it's not going to be in the 5 games we announced, we will announce. On the consumer testing, what we have been able to do is to put also more seniority in the team so that we and also more locations to handle the test so that we can have a better perception of what people think about the game and what we should do. And really, the answer to many of those questions is to be able to test the games early in the process so that we can tune the different aspects of the game to fit with players' needs. Many of the problematics we encountered can be solved. Even RPG elements in a game like the games we do can be tuned to the point that it will be appreciated by players if it's really well integrated and fits with what players can want to play. Okay. Thank you very much. Thanks a lot. Thank you. Our next question comes from Ryan Gee of Bank of America. Please go ahead. Your line is open. Yes. Hi. Good evening. Thanks for taking the questions. I guess just a few for Frederic here. So on the profit target for fiscal 2021, I believe one of the reasons for the low profitability this year was that you had a lot of marketing expense for titles that are moved out to the next year. So I'm curious, do you basically have to re spend all that marketing all over again in fiscal 2021 or do you benefit and perhaps see better marketing margins ahead for those titles? That's the first question. The second, as we think about Watch Dogs, Legion versus Watch Dogs 2 and maybe Quarantine versus something like R6, Siege. Is it fair to assume those titles grow versus their predecessors next year or what's implied in your €2,600,000,000 outlook? And then lastly on PRI, it's been some time since we've gotten some visibility into the makeup there. Could you just help us rank order what are the biggest drivers right now for PRI, which games are contributing the most to that business? Thank you. So in terms of the main reason for the low performance of Gulf Freight Point and also to some extent the fact that we postponed 3 AAA games to next year. So we only had 1 AAA game this year and under expectations. So yes, we had some pre spending in marketing, but this is so far good use of our marketing and we don't think there will be redundancies in driving more marketing to launch our games. Like we said back in titles that we have this year, strong element of differentiation and strong marketability and that's true to say favorably the way we spend our marketing for the audience that we target. In terms of Watch Dogs Legend versus Watch Dogs 2, we give more information in May. What we can say is that WatchGuard Legion is coming with a very strong promise, which is the play as anyone, which we all playable character feature, which we think can be a breakthrough for the industry. So of course, we need to execute it very well, making sure that it's fun for players and make sure that the players understand very well the purpose of the gameplay. So that's what we are looking at very strongly for the year to come. And we are really, really pleased with what we see at the moment on the evolution of the game. In terms of the biggest drivers for PRI, Rainbow Six Siege is still the number one. Like we said last year, it used to be having more than 50% of the overall PRI, now it's less than 50%. The 2nd biggest contributor and that's been the great achievement over the last year and a half has been Assassin's Creed Odyssey because the playtime has been improving so much with a very strong and smart post launch program over 6 to 7 months even 8 to 9 months, sorry, so longer than what we ever done on Assasin Grid that has translated into a very strong PRI contribution. Our next question comes from Matilda DeRosano Barclays. Please go ahead. Your line is open. Hi, yes. Good afternoon. I wanted to ask about the challenging environment you had. Have. More competitive now than it was in 2018. You had another big launch, big releases. Do you think that the coming year is more competitive compared to then? Or is it approximately the same? We consider it's approximately the same. Remember, last year, we had fierce competition as well with Red Dead Redemption in front of FSIG Street. So we consider it's a good competitive year, but probably not more competition than what we had before. We will now take our next question from Mike Keay of The Benchmark Company. Please go ahead. Hello, Eve, Frederic. Good evening, guys. Thanks for taking my questions. Appreciate it. First one, I guess now that you've had the opportunity and experience in making your games on next gen consoles, I was hoping you could share with us, I guess, your view sort of the top benefits you see from these new machines in terms of driving purchase behavior from players. And then with your software launches over holiday, I would imagine that you want to be aggressive in trying to find bundling opportunities with new consoles. Just curious if you could speak to this? And I have a follow-up. It was difficult to hear a part of your question. I think you spoke about bundling with new consoles. So this is happening on a regular basis in the industry, depends very much on the types of deals that we do with the 1st parties and how they use our IPs to push their consoles. So we do that on a regular basis, but we can't give you more info on what's on the way. Now you spoke about the purchase behavior. Can you elaborate a bit more on the NextGen? Is that your question? Yes. Since you guys have been making games on the next gen consoles, just curious your thoughts on sort of the top benefits of the new hardware for players in terms of why we want to buy the new machines essentially? So what we are going to do as we do regularly is to take advantage of the new the potential of those new machines and that potential is really high. So we think players will be able to be very improved very impressed by the quality of what those new consoles would bring to the market. What will be new also in this industry is that those consoles will be running almost all the back catalog of the previous consoles. So it will be something new in the industry. It will help the old generation to continue to be big consoles on the market for the years to come. And so that's something new that will actually grow the market a lot. So we will have new people, lots of new machines sold and lots of marketing done on the market to promote those machines that will be more thanks to thanks to the fact that the old console will remain very strong console for all the games that will be published. I don't know if it answers your question. Kind of, but I'll take it. Thank you. Last one for me on the again on the upcoming consoles, Sony and Microsoft, if you feel that you have the opportunity, I guess, to get a larger share of the revenue or monies from player download of your games or live service monetization. I guess thinking about how Epic kind of recently was a pretty big disruptor to the traditional share as they competed with steam. But if you see, I guess, a similar opportunity on console taking shape for you over time? Thank you. Yes. We have been able with each new generation to increase our share of the global market. So we hope we will be able to continue to grow our market share, thanks to these new consoles coming. Because as Ubisoft is using always the revolutions of those new consoles, we are generally in a good position to take to convince new consumers to come and join the company. When I said share, sorry guys, I meant the revenue split between you and your partner, your partner being Sony or Microsoft in this case on the new consoles, the traditional share being sort of 70.30 or 70 5.25 dollars Epic with their game service decided to share 88%, they took 12%. The question was, do you see a scenario or opportunity where you get a larger piece of the economics of your games downloaded or the live service monies for your games on the next gen consoles? So we can't give you information on that front. There's a real trend to there's a good evolution because there are more and more platforms now that are happening and streaming is going to be important, but we can't elaborate on that more. Our next question comes from Ken Rumf of Jefferies. Please go ahead. Your line is open. Hello again, gentlemen. A quick follow-up. It could be my memory, but I thought the plan for the 5 games originally had been from September until the end of March. Maybe I was misunderstanding whether the month of September was included in that. Have have something that was going to be in September now slipped into the October to December period. As I say that could be my misunderstanding of whether September was included or not. Hello, Ken. Your understanding was is correct. We had said that there would be between September March. Okay. Thank you very much. Our next question comes from Jeff Cohen of Stephens Incorporated. Please go ahead. Your line is open. Hey, guys. Thanks for taking the question. I jumped on a bit late, so if this has already been asked and answered, I apologize. Could you talk a little bit about what you're seeing in terms of Uplay plus adoption and maybe any differences that you're seeing in engagement from players in that subscription versus your overall player base? Yes, uPlay plus engagement is higher than when players only buy one game from time to time. And what it's a long term prospect and a long term engagement for us. What we see is that there's a good trend coming. And so we it's another way for us to get new customers to actually try our games. And what we expect is that in trying those games, they will also learn more about the different IPs that we have. So we are really going to focus on growing that new model. Thanks. You're welcome. We have no further questions over the phone at this time. Thank you very much for all your questions and have a good afternoon or a good day.