Tech

Ubisoft posts 18% rise in sales, says it will take action after sexual misconduct scandal

Key Points
  • Ubisoft's reported net sales of 427.3 million euros during the quarter, up from 363.4 million euros in the year-ago quarter.
  • The company's Chief Creative Officer Serge Hascoët recently resigned following a probe into allegations of misconduct.
  • To address the scandal, Ubisoft said Wednesday that it would take a series of steps to address its work culture.
Yves Guillemot, Ubisoft co-founder and CEO, speaks during the Ubisoft E3 2019 conference at the Orpheum Theatre on June 10, 2019 in Los Angeles, California.
Christian Petersen | Getty Images

French video game maker Ubisoft reported an 18% rise in sales in its first quarter earnings report. It also vowed to take action after allegations of sexual harassment at the firm.

Ubisoft reported net sales of 427.3 million euros ($494.5 million) during the quarter, up from 363.4 million euros a year ago. It said sales were driven largely by its "Tom Clancy's Rainbow Six Siege" game, "Just Dance" and the "Assassin's Creed" franchise.

Ubisoft also noted "record-high levels of engagement and number of players over a quarter." People around the world have been quarantined indoors during the coronavirus outbreak, which has led to a surge in sales of video games.

"While Ubisoft's current performance and business prospects are stronger than ever, we nonetheless face a very serious challenge following the recent allegations and accusations of misconduct and inappropriate behavior within our Group," Yves Guillemot, Ubisoft co-founder and CEO said.

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Ubisoft has been dealing with an internal scandal over sexual misconduct. Earlier this month, Ubisoft's Chief Creative Officer Serge Hascoët resigned following a probe into allegations of misconduct.

Hascoët had been in charge of creative production on all of Ubisoft's games since 2006. Several additional Ubisoft employees became the subject of sexual harassment allegations last month.

Ubisoft said Wednesday that it would take a series of steps to address failings in work culture.

The firm set up a confidential third-party platform that lets employees and external individuals anonymously report harassment and discrimination.

It also said it will tie some team leads' bonuses to "their ability to create a positive and inclusive workplace environment," and has appointed executives leading workplace culture and diversity and inclusion.

Ubisoft said on its earnings call that it's hoping its new lineup of games set to launch later this year — as well as the launch of next-generation consoles from Microsoft and Sony — will help it meet its full-year targets.

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