Ubisoft Achieves Record Bookings in 2023

French gaming giant Ubisoft has unveiled its fiscal year 2023 report, highlighting a 27% surge in sales to €2.3 billion ($2.5 billion). Key takeaways for the 12-month period ending March 31, 2024, include: - Sales: €2.3 billion ($2.5 billion), up 27% year-over-year - Net bookings: €2.32 billion ($2.52 billion), up 34% year-over-year - Operating income: €313.6 million ($341 million), a significant improvement from the previous year's loss of €586 million ($638 million) Ubisoft's year-end report boasts record annual and Q4 net bookings, with notable contributions from the Rainbow Six and Assassin's Creed franchises. Digital revenue reached €2 billion ($2.2 billion) for the year, marking a 34% increase from the previous year. The company's back catalog generated €1.5 billion ($1.6 billion) in revenue, representing a 49% year-over-year growth. According to Ubisoft, its back catalog performance was driven by Rainbow Six Siege's exceptional results in acquisition, activity, viewership, and monetization. The Assassin's Creed series also performed well during Q4, thanks to the launch of Assassin's Creed Mirage in the third quarter and the addition of Assassin's Creed Valhalla to Xbox Game Pass. Ubisoft reported a 4% year-over-year increase in unique active users for PC and console, reaching 138 million. CEO Yves Guillemot stated that the results demonstrate Ubisoft's return to a profitable growth trajectory, driven by a solid performance and the initial benefits of its transformation toward a more balanced and recurring business model. "This year marked the first step in our turnaround, showcasing solid performance and the initial benefits of our transformation toward a more balanced and recurring business model, supported by multiple revenue streams," Guillemot said. "The year highlighted the strength and value of our key assets, including our global teams, a diversified portfolio of high-quality franchises, passionate fan communities, cutting-edge technologies, and a unique position in the gaming industry that enabled us to secure profitable partnerships." The company's strategy now focuses on two core areas: open-world adventure and games-as-a-service (GaaS) native experiences. Open-world adventure includes titles like Far Cry and Assassin's Creed, while GaaS-native experiences comprise games like X-Defiant and The Division. Ubisoft chose these segments to capitalize on its brands, secure strategic territories, and drive growth through multiplayer and mobile experiences, as well as build and grow recurrence through social-driven communities. As part of its cost reduction plans, Ubisoft has halted development of The Division Heartland and reallocated resources to XDefiant and Rainbow Six. As of March 31, 2024, Ubisoft's employee headcount stands at 19,011, representing a decrease of 1,700 staff members over 18 months. However, the company notes that employee retention has improved during this period. "The cost reduction plan is on track, with the FY 2023-24 fixed cost base at around €1.6 billion, representing a year-over-year reduction of approximately €150 million, including a favorable foreign exchange impact," the publisher said. Ubisoft projects net bookings for Q1 of its 2025 fiscal year to reach approximately €275 million ($299 million), a 3% year-over-year increase. The company also announced the upcoming release of Star Wars Outlaws on August 30. Meanwhile, the newly announced Assassin's Creed Shadows, an action title set in feudal Japan, is scheduled for release on November 15, featuring dual protagonists Naoe and Yasuke. Additionally, Ubisoft will launch the preseason of its free-to-play title XDefiant on May 21.