Ubisoft FY24 Earnings

Key insights

6 takeaways

01
Ubisoft returned to profitability in FY24 with €401 million in non-IFRS operating income, a significant turnaround from the previous year's loss.See it on page 13
02
Net bookings grew to €2,321 million, driven by strong engagement in Assassin’s Creed and Rainbow Six, which each maintained over 30 million unique users.See it on page 5
03
The company reduced its fixed cost base by €150 million year-on-year, with a target of €200 million in total savings by FY2026.See it on page 9
04
Operational efficiency measures included a headcount reduction of more than 1,700 positions since September 2022.See it on page 9
05
Engagement metrics improved with a 4% increase in unique active users on console and PC and a 12% rise in total hours played.See it on page 5
06
The FY2025 strategy focuses on immersive open-world adventures and service-based games, with expectations for continued growth in net bookings and operating income.See it on page 13

Summary

Ubisoft’s fiscal year 2024 earnings report highlights a successful financial turnaround, characterized by a return to profitability and the achievement of key performance targets. The company reported net bookings of €2,321 million, representing a significant increase over the previous fiscal year. This growth was driven by strong engagement across its core franchises, particularly Assassin’s Creed and Rainbow Six, which each maintained player bases exceeding 30 million unique users. Operational metrics reflected this momentum, with unique active users on console and PC rising by 4% and total hours played increasing by 12%.

The financial results underscore a shift toward operational efficiency and cost discipline. Non-IFRS operating income reached €401 million, a marked improvement from the previous year’s loss. This recovery is supported by an ongoing cost-reduction program, which has successfully reduced the fixed cost base by approximately €150 million year-on-year. This initiative included a reduction in total headcount by more than 1,700 positions since September 2022, while simultaneously improving employee retention. The company remains committed to its broader goal of achieving at least €200 million in fixed cost savings by fiscal year 2026.

Looking forward, the company is focusing its strategy on two primary segments: immersive open-world adventures and long-term, service-based gaming experiences. By leveraging proprietary technologies and established intellectual property, the firm aims to capitalize on high-growth market opportunities. The outlook for fiscal year 2025 anticipates continued net bookings growth and a further increase in non-IFRS operating income, supported by a robust release schedule that includes both premium titles and free-to-play offerings. The company expects these efforts to generate positive free cash flow, reinforcing its long-term financial stability.