Ubisoft H1 FY25 Earnings

Key insights

6 takeaways

01
Ubisoft reported H1 FY25 net bookings of €642 million, a 22% year-over-year decline, resulting in a non-IFRS net loss of €208 million.See it on page 11
02
The company is executing a restructuring plan to reduce fixed costs by at least €200 million by FY26 relative to its FY23 base.See it on page 9
03
Operational efficiency measures have led to a reduction of over 2,000 employees over the past two years and a €46 million decrease in H1 fixed costs.See it on page 9
04
Despite financial losses, player engagement remains stable with 138 million unique players over the last twelve months and a 3% increase in monthly active users to 37 million.See it on page 5
05
Back-catalog net bookings grew 12% year-over-year, driven by core franchises like Rainbow Six Siege, Assassin’s Creed, and The Crew.See it on page 5
06
Ubisoft projects Q3 FY25 net bookings of approximately €380 million and aims to reach breakeven in non-IFRS operating income and free cash flow for the full fiscal year.See it on page 11

Summary

Ubisoft’s H1 FY25 earnings report outlines a challenging financial period characterized by a decline in net bookings and a shift toward operational restructuring. For the first half of the fiscal year, the company reported net bookings of €642 million, a 22% decrease year-over-year. This performance resulted in a non-IFRS consolidated net loss of €208 million, compared to a profit of €1.6 million in the same period last year. The financial results reflect a broader strategy to streamline operations, with the company targeting at least €200 million in fixed cost reductions by FY26 relative to its FY23 base.

Despite the financial contraction, the company maintains strong engagement metrics across its core portfolio. Total unique players over the last twelve months reached 138 million, a 4% increase, while H1 monthly active users rose 3% to 37 million. Key franchises, including Rainbow Six Siege, Assassin’s Creed, and The Crew, continue to drive significant activity, with back-catalog net bookings—excluding partnerships—growing 12% year-over-year. Long-term value remains a focal point, as evidenced by the historical performance of major brands, with Assassin’s Creed and Rainbow Six Siege generating approximately €4 billion and €3.5 billion in lifetime revenue, respectively.

Operational efficiency efforts are underway, highlighted by a reduction in total headcount by over 2,000 employees over the past two years and a decrease in the H1 fixed cost base by €46 million compared to the previous year. Looking ahead, the company anticipates Q3 FY25 net bookings of approximately €380 million and aims for breakeven in non-IFRS operating income and free cash flow for the full fiscal year. The report underscores a transition phase focused on cost discipline and leveraging established live-service titles to stabilize performance.