Ubisoft First-Half 2023-24 Earnings Figures

Key insights

7 takeaways

01
Ubisoft reported first-half fiscal year 2023-24 net bookings of €822.4 million, a 17.6% year-over-year increase that exceeded initial financial targets.See it on page 1
02
The company achieved a non-IFRS operating income of €43.5 million, marking a significant recovery from the €139 million loss reported in the same period last year.See it on page 12
03
Second-quarter performance was a primary growth driver, with net bookings reaching €554.8 million against a projected €350 million.See it on page 5
04
Back-catalog strength was led by Tom Clancy's Rainbow Six Siege, which saw a 50% increase in net bookings and high double-digit growth.See it on page 3
05
Fixed costs decreased by 7% year-on-year as part of an ongoing cost-reduction plan.See it on page 4
06
Ubisoft acquired perpetual cloud streaming rights for Activision Blizzard titles to bolster the value of the Ubisoft+ subscription service.See it on page 2
07
The company reaffirmed its full-year target of approximately €400 million in non-IFRS operating income, supported by upcoming premium and free-to-play releases.See it on page 6

Summary

Ubisoft’s first-half earnings for fiscal year 2023-24 demonstrate strong financial momentum, characterized by record net bookings and performance that exceeded initial targets. The company reported net bookings of €822.4 million, representing a 17.6% increase compared to the same period in the previous fiscal year. This growth was primarily driven by a robust second quarter, which saw net bookings reach €554.8 million, significantly outperforming the projected €350 million. The company’s non-IFRS operating income reached €43.5 million, a notable recovery from the €139 million loss recorded in the first half of the prior year.

The company’s performance was bolstered by the successful launches of Assassin's Creed Mirage and The Crew Motorfest, both of which achieved strong player reception and solid initial sales metrics. Furthermore, the back-catalog proved to be a critical revenue driver, with Tom Clancy's Rainbow Six Siege experiencing high double-digit growth and a 50% increase in net bookings for the first half. This sustained engagement with existing titles, combined with effective monetization through partnerships, underscores the company's ability to leverage its established intellectual property to maintain recurring revenue streams.

Geographically, the company maintains a strong presence in North America and Europe, which accounted for the majority of net bookings. Operationally, the company is successfully executing a cost-reduction plan, resulting in a 7% year-on-year decrease in fixed costs. Strategic developments during this period included the finalization of an agreement to acquire perpetual cloud streaming rights for Activision Blizzard titles, a move intended to enhance the value of the Ubisoft+ subscription service. Looking ahead, the company has confirmed its full-year targets, anticipating strong top-line growth and a non-IFRS operating income of approximately €400 million, supported by a planned lineup of premium and free-to-play titles.