Ubisoft FY22 Earnings: H1 Performance

Ubisoft’s H1 FY22 earnings report details the company’s financial performance for the first half of the fiscal year, highlighting a period of transition characterized by a reliance on back-catalog strength and proprietary brand performance. The company reported net bookings of €718 million, representing a 5% decline year-over-year but a 9% increase compared to H1 FY20. Digital revenue remained a primary driver, accounting for 78% of total net bookings, despite a 15% decrease from the previous year.

Key operational findings indicate that while net bookings experienced a slight contraction, player engagement metrics remained robust, with unique active players and monthly active users increasing by 15% and 9%, respectively, compared to H1 FY20. The second quarter outperformed internal targets, with net bookings reaching €392 million, bolstered by the sustained popularity of titles such as Assassin’s Creed Valhalla, Rainbow Six Siege, and The Crew 2. Assassin’s Creed Valhalla notably emerged as the second-largest profit-generating game in the company’s history, while early sales for Far Cry 6 aligned with previous franchise benchmarks.

Financially, the company reported a non-IFRS current operating income of €44.1 million and a consolidated net income of €30.3 million. Operating expenses were influenced by increased structure costs, while R&D investments remained a significant focus, with total cash R&D reaching €573.1 million. Looking ahead, the company maintains a stable outlook for the remainder of the fiscal year, projecting full-year net bookings to remain stable or slightly down, with non-IFRS operating income expected to fall between €420 million and €500 million. The report underscores a strategic emphasis on leveraging established intellectual property to maintain market position amidst evolving industry dynamics.