Ubisoft Half Year Financial Report H1 FY24

Key insights

7 takeaways

01
Ubisoft achieved a non-IFRS operating profit of €43.5 million for H1 FY24, reversing a €139.0 million loss from the same period in the previous year.See it on page 5
02
Net bookings grew 17.6% to €822.4 million, driven by the releases of Assassin's Creed Mirage and The Crew Motorfest alongside back-catalogue performance.See it on page 4
03
Total revenue increased 14.3% to €836 million, reflecting the effectiveness of the company's current release strategy and operational focus.See it on page 4
04
Operational expenses were reduced through a €56 million cut in R&D spending and a workforce reduction from 20,729 to 19,409 employees.See it on page 23
05
The company projects an operating income of approximately €400 million for the full 2023-24 fiscal year.See it on page 6
06
As of September 30, 2023, net financial debt stood at €1,183 million, with the company remaining in full compliance with all financial covenants.See it on page 31
07
Long-term growth strategy includes the acquisition of perpetual, worldwide cloud streaming rights for Activision Blizzard titles.See it on page 36

Summary

Ubisoft demonstrated a significant financial recovery during the first half of the 2024 fiscal year, transitioning from substantial losses to profitability. Net bookings reached €822.4 million, representing a 17.6% increase fueled by the successful releases of Assassin's Creed Mirage and The Crew Motorfest, alongside consistent engagement with the company’s back-catalogue. This performance resulted in a non-IFRS operating profit of €43.5 million, a marked improvement over the €139.0 million loss reported during the same period in the previous year. Total revenue rose to €836 million, reflecting a 14.3% increase that underscores the effectiveness of the company’s current release strategy and operational focus.

The company’s improved financial position is largely attributed to a disciplined approach to cost management. Operational expenses were reduced through a €56 million decrease in research and development spending and a broader reduction in structural costs. This fiscal tightening included a workforce adjustment, with total headcount decreasing from 20,729 to 19,409 employees. Despite these reductions, the company maintained stable investment in internal software development and intangible assets. As of September 30, 2023, net financial debt stood at €1,183 million, with the company remaining in full compliance with all established financial covenants.

Looking ahead, the company maintains a positive outlook for the remainder of the 2023-24 fiscal year, projecting strong growth in net bookings and an operating income of approximately €400 million. Strategic initiatives, such as the acquisition of perpetual, worldwide cloud streaming rights for Activision Blizzard titles, are positioned to influence long-term growth. While the company continues to navigate ongoing tax audits in France and Spain regarding transfer pricing, it remains confident in its legal position. These results confirm a successful stabilization phase, characterized by rigorous cost control and a renewed focus on high-performing intellectual property.