Ubisoft Reports 9.2% Decline in Q1 Net Bookings, Citing High Comparison Base

Ubisoft has released its Q1 financial results, with net bookings totaling €255.8 million. Although this figure is slightly above expectations, it represents a 9.2% year-over-year decline. The company attributes this decrease to a challenging comparison with the previous year, which saw substantial revenue from Assassin's Creed Shadows. Key highlights include: Revenue of €268.2 million, down 13.7% year-over-year, and net bookings of €255.8 million, down 9.2% year-over-year. Digital net bookings and back catalogue net bookings also experienced declines, at 17.6% and 15.1% respectively. The mobile game Invincible: Guarding the Globe was a bright spot, driving player acquisition, retention, and monetization. Tom Clancy's Rainbow Six Siege performed in line with expectations, while The Division 2 saw improved year-on-year monetization trends. The Crew Motorfest experienced year-on-year growth in active users and session days. Ubisoft's Q2 has started strong, thanks to the successful launch of Assassin's Creed: Black Flag Resynced, which sold 3.5 million copies in its first two weeks and exceeded annual expectations. The game achieved record performance on PC, with a peak of 105,000 concurrent players on Steam. According to Ubisoft CEO Yves Guillemot, the launch of Assassin's Creed Black Flag Resynced demonstrates the enduring appeal of the franchise and the benefits of the company's ongoing transformation. Ubisoft has made progress in its group-wide transformation, including the formation of Creative Houses and the appointment of Christoph Hartmann as general manager of Creative House 2. However, the company has also closed studios in Winnipeg and Belgrade, and reduced publishing roles worldwide, affecting 380 jobs. Ubisoft expects net bookings to decline by a high single-digit percentage and anticipates a high single-digit negative non-IFRS operating margin. Despite this, the company remains confident in its ability to strengthen its position as a leading creator of high-quality entertainment experiences and return to a stronger trajectory of performance.