Ubisoft Rapport Financier Semestriel: H1 FY25

Key insights

6 takeaways

01
Ubisoft reported a 21.9% decline in net bookings to €642.3 million and a non-IFRS operating loss of €252.1 million for H1 FY25, driven by the delay of Assassin’s Creed Shadows and the poor performance of Star Wars Outlaws.See it on page 4
02
The company maintains a net financial debt of €1.4 billion as of September 30, 2024, with research and development costs consuming 79% of total revenue.See it on page 30
03
Management has reaffirmed full-year guidance targeting €1.95 billion in net bookings and a break-even position for both non-IFRS operating income and free cash flow.See it on page 6
04
Despite financial losses, user engagement remains resilient, with monthly active users rising 3% to 37 million and total playtime increasing by 9%, largely supported by Rainbow Six Siege.See it on page 4
05
The firm holds a cash position of €933.1 million and has completed capital restructuring, including a €75 million bond issuance and the repayment of €250 million in convertible bonds.See it on page 31
06
Ubisoft continues to operate under the pressure of ongoing global tax audits while meeting all existing banking covenants.See it on page 28

Summary

Ubisoft experienced a period of significant financial contraction during the first half of fiscal year 2025, characterized by a 21.9% decline in net bookings to €642.3 million and a non-IFRS operating loss of €252.1 million. This downturn stems primarily from the strategic delay of Assassin’s Creed Shadows and the underwhelming commercial reception of Star Wars Outlaws. Despite these fiscal challenges, the company maintains a stable operational foundation, evidenced by resilient engagement metrics such as a 3% increase in monthly active users to 37 million and a 9% rise in total playtime, largely sustained by the enduring popularity of the back-catalogue, particularly Rainbow Six Siege.

The company’s financial position remains under pressure, with research and development costs consuming 79% of revenue and a net financial debt reaching €1.4 billion as of September 30, 2024. To navigate this environment, management has executed several capital restructuring measures, including a €75 million bond issuance and the repayment of €250 million in convertible bonds. While the company faces ongoing tax audits in various jurisdictions, it continues to meet all banking covenants and maintains a cash position of €933.1 million. Auditors have verified that these financial statements comply with international standards, confirming a transparent view of the firm’s current standing.

Looking ahead, the organization has reaffirmed its revised guidance for the full fiscal year, targeting net bookings of approximately €1.95 billion and a break-even position for both non-IFRS operating income and free cash flow. This outlook reflects a cautious approach to balancing high development expenditures with the need for improved profitability. By focusing on core franchise stability and operational efficiency, the company aims to stabilize its financial trajectory while managing the risks associated with its current development pipeline and global tax obligations.