Ubisoft's Half-Year Financials Reveal Significant Decline Amid Star Wars Outlaws' Disappointing Performance

Ubisoft has unveiled its financial results for the first half of the fiscal year, citing a 'resilient performance' from its back-catalogue and live services, despite experiencing a 19.6% year-over-year decline in sales to €672 million. The company's cost reduction program is reportedly 'on track,' with a thorough review of its 'player-centric approach' underway to address concerns and boost game sales. Notably, Ubisoft's global workforce has decreased by over 2,000 employees. Key financial highlights for the six months ending September 30, 2024, include: sales of €672 million (down 19.6% year-over-year), net bookings of €642 million (down 21.9%), digital net bookings of €527 million (down 26.5%), and back-catalogue net bookings of €494 million (down 28.95%). Although net bookings for the second quarter stood at €352 million, back-catalogue net bookings saw a 12% increase. The company reported a 9% and 6% year-over-year rise in Playtime and Session Days, respectively, with 37 million monthly active users, representing a 3% increase. Star Wars Outlaws failed to meet sales expectations, despite receiving 'solid reviews' from users. The Assassin's Creed and Rainbow Six Siege franchises continued to attract strong audiences, with over 30 million unique active users each. Lifetime sales for Ubisoft's key franchises were also disclosed, with Assassin's Creed generating €4 billion, Rainbow Six Siege €3.5 billion, and Far Cry €2 billion over the last decade. CEO Yves Guillemot stated that the company is undergoing a significant transformation to restore its creative edge and improve execution, with a renewed focus on player-centricity and a more efficient organizational structure. Guillemot highlighted the company's efforts to address player feedback and improve the quality of Star Wars Outlaws, while also ensuring the upcoming Assassin's Creed Shadows is a 'highly polished experience' at launch.