Ubisoft Sees 31.4% Decline in Revenue to €990 Million

Ubisoft has unveiled its financial results for the nine-month period ending December 31, 2024, revealing substantial declines in both revenue and net bookings. Despite this, the company remains upbeat, particularly with the impending launch of Assassin's Creed Shadows, which is tracking solidly in pre-sales, on par with the franchise's second-highest earner, Odyssey. Key highlights for the nine months ending December 31, 2024, include: revenue of €990 million, representing a 31.4% year-on-year decline; net bookings of €944 million, down 34.8%; digital net bookings of €784 million, a decrease of 33.8%; and back-catalogue net bookings of €762.3 million, which saw a 27.7% decline. For the three months ending December 31, 2024, net bookings were €301.8 million, with digital net bookings at €257.4 million. Although the company experienced a significant 51.8% year-on-year decline in net bookings for Q3, this was in line with its revised expectations of €300 million for the period. Ubisoft is optimistic about the next quarter, anticipating an increase in net bookings following the release of Assassin's Creed Shadows on March 20. The company's CFO, Frederick Duguet, noted that pre-sales for the title are tracking solidly, with sales comparable to those of Odyssey. The increase in revenues will largely depend on the success of Shadows, with early previews receiving positive feedback for its narrative, immersive experience, and gameplay. Ubisoft co-founder and CEO Yves Guillemot praised the Assassin's Creed team for their dedication, stating that Shadows promises to be the franchise's most ambitious entry yet. In the first nine months of the fiscal year, Ubisoft recorded 36 million monthly active users across console and PC, with playtime and session days per player increasing by 4% and 7%, respectively. The company's online tactical shooter Rainbow Six Siege delivered a resilient performance during Q3, with a growth in session days per player and achieving its highest monthly average revenue per paying user since its release in 2015. The Crew Motorfest also saw its highest monthly player count, with a 38% year-on-year increase in session days. The firm noted that retention and monetisation metrics continue to outperform those of The Crew 2 since launch. Ubisoft is ahead of schedule with its cost reduction plan, following recent cuts at several studios, including Leamington, Reflections, Ubisoft Düsseldorf, and Ubisoft Stockholm. The company announced further targeted restructuring but did not specify the impact on employees. Guillemot stated that the company now expects to exceed its cost reduction plan by the end of FY25, ahead of schedule, and plans to pursue efforts in FY26, going beyond the initial target. An update was also provided on the ongoing formal review of strategic options, aiming to unlock the best value from assets for stakeholders and create the best conditions for game development in a fast-evolving market. One potential path includes a buyout from Tencent, although CFO Duguet declined to comment on specific rumors, stating that the market would be informed if and when a transaction materializes.