Ubisoft H1 2024-25 Financial Results

Ubisoft’s financial results for the first half of fiscal year 2025 reveal a period of significant contraction and strategic realignment. The company reported revenue of €671.9 million, representing a 19.6% decline compared to the same period in the previous year, while net bookings fell by 21.9% to €642.3 million. This downturn was driven largely by the underperformance of major releases, specifically Star Wars Outlaws and the free-to-play shooter XDefiant, both of which failed to meet internal sales and retention targets. Consequently, the company shifted from an operating profit of €16.1 million in the prior year to an operating loss of €271.8 million.

Despite these financial challenges, the company’s user engagement metrics showed resilience, with monthly active users rising 3% to 37 million and total playtime increasing by 9%. Rainbow Six Siege remained a critical driver of this engagement. To address technical shortcomings and mitigate future risks, the company has allocated an additional €20 million to polish Assassin’s Creed Shadows, resulting in a delayed release date of February 14, 2025. This decision reflects a broader effort to prioritize quality following the negative reception of recent technical issues in other titles.

In response to the current fiscal climate, management is executing a rigorous cost-reduction program that has saved over €200 million in the first half of the year. This strategy includes a workforce reduction of 744 employees since September 2023, bringing the total headcount reduction to over 2,000 personnel in the last two years. Moving forward, the company intends to streamline its operations by focusing exclusively on its core competencies in open-world adventures and live-service experiences, while simultaneously exploring the divestment of non-core assets to stabilize its financial position.