Rainbow Six Siege

Ubisoft Reportedly Closes Its Russian Office

This report examines conflicting accounts regarding the status of Ubisoft’s operations in Russia, specifically addressing rumors of a total office closure in November 2022.

• Ubisoft has officially denied reports that it closed its Moscow office, which was established in 2014 to manage regional logistics, localization, and esports.
• The company suspended all game sales in Russia on March 7, 2022, in response to the conflict in Ukraine.
• Rumors of a total corporate exit in November 2022 originated from a Russian social media community for game collectors citing anonymous former employees.

Ubisoft Half Year Financial Report: H1 FY23

Ubisoft’s financial performance for the first half of fiscal year 2023 reflects a period of strategic transition characterized by a slight contraction in revenue and a net loss of €190.1 million.

• Ubisoft reported a net loss of €190.1 million for H1 FY23, driven by a 2.7% revenue decline to €731.2 million and rising operational costs.
• Research and development expenditures reached €486.5 million, accounting for 66.5% of total revenue during the period.
• Despite the revenue contraction, net bookings of €699.4 million exceeded internal targets, supported by the performance of the Rainbow Six Siege and Assassin’s Creed franchises.

Ubisoft First-Half 2022-23 Earnings Figures

Ubisoft’s first-half 2022-23 financial performance reflects a period of significant transition and fiscal pressure, characterized by a net loss of €190.2 million and a non-IFRS operating loss of €139.0 million.

• Ubisoft reported H1 2022-23 net bookings of €699.4 million, a 2.6% decline year-on-year, though Q2 net bookings of €406.1 million exceeded the target of €270 million.
• The company recorded a non-IFRS operating loss of €139.0 million for the first half of 2022-23, compared to a profit of €44.1 million in the same period last year.
• Digital net bookings grew by 15.1% to €641.7 million, now accounting for 91.7% of total net bookings.

Ubisoft FY23 Earnings: First-Half Performance

Ubisoft’s first-half performance report for fiscal year 2023 details a period of financial transition characterized by a slight decline in net bookings alongside strategic operational shifts.

• Ubisoft reported a non-IFRS operating loss of €139 million for the first half of FY23, a significant decline from the €44.1 million profit recorded during the same period last year.
• Net bookings for the first half of FY23 totaled €699 million, representing a 3% year-over-year decrease despite a strong second quarter that exceeded projections by €136 million.
• R&D expenses surged to €452.2 million from €276.2 million in the prior year, driven primarily by increased depreciation of in-house software production.

Ubisoft First-Quarter 2022-23 Sales

Ubisoft’s first-quarter fiscal 2022-23 financial results demonstrate a performance slightly exceeding internal projections, with net bookings reaching €293.3 million against a target of €280 million.

Ubisoft Third-Quarter 2021-22 Sales

Ubisoft’s third-quarter fiscal 2021-22 results demonstrate the resilience of its vertically integrated, asset-based business model.

• Ubisoft reported third-quarter fiscal 2021-22 net bookings of €746.1 million, maintaining full-year guidance despite a 16.6% year-over-year decline in nine-month net bookings to €1,464.3 million.
• Back-catalog performance grew 10% year-over-year, driven by the longevity of key franchises and sustained post-launch support.
• Assassin’s Creed Valhalla outperformed Assassin’s Creed Odyssey in both life-to-date net bookings and Player Recurring Investment (PRI).

Ubisoft FY22 Earnings: H1 Performance

Ubisoft’s H1 FY22 earnings report details the company’s financial performance for the first half of the fiscal year, highlighting a period of transition characterized by a reliance on back-catalog strength and proprietary brand performance.

• Ubisoft reported H1 FY22 net bookings of €718 million, a 5% year-over-year decline but a 9% increase compared to H1 FY20.
• Digital revenue accounted for 78% of total net bookings, despite a 15% decrease in digital sales compared to the previous year.
• Player engagement metrics showed growth, with unique active players up 15% and monthly active users up 9% compared to H1 FY20 levels.

Ubisoft Financial Results and Free-to-Play Strategy

Ubisoft’s fiscal year ending March 31, 2021, marked a period of record financial performance, characterized by a strategic pivot toward integrating high-end free-to-play (F2P) titles alongside its traditional premium AAA offerings.

• Ubisoft reported record net bookings of €2.2 billion for the fiscal year ending March 31, 2021, representing a 46.1% increase over the previous year.
• The company is shifting its business model to include more high-end free-to-play titles, aiming to replicate the 'Call of Duty' strategy by adding F2P experiences alongside its existing premium AAA releases.
• Digital sales accounted for 71.8% of total revenue, while back-catalog titles contributed 57.5% of the year's total sales.

Ubisoft FY21 Earnings

The Ubisoft fiscal year 2021 earnings report details a period of significant financial growth and operational expansion for the company.

• Ubisoft achieved a 46% year-over-year increase in net bookings, reaching 2,240.6 million euros for fiscal year 2021.
• Non-IFRS operating income reached a record 473.3 million euros, a significant increase from the 34.2 million euros reported in the previous fiscal year.
• Digital revenue accounted for 72% of total net bookings, while the back-catalog remained a primary driver, representing 58% of total net bookings for the third consecutive year.

Ubisoft Third-Quarter 2020-21 Sales

Ubisoft achieved record financial performance during the third quarter of the 2020-21 fiscal year, driven by high-quality game launches and a robust back-catalog.

• Ubisoft recorded €1,001.0 million in net bookings for Q3 2020-21, contributing to a 57.2% year-over-year increase for the first nine months of the fiscal year, totaling €1,755.7 million.
• Digital net bookings accounted for 70.8% of total revenue over the nine-month period, while the back-catalog contributed 58.1%, highlighting a significant shift toward recurring revenue streams.
• Assassin’s Creed Valhalla achieved record revenue for the franchise, and Tom Clancy’s Rainbow Six Siege surpassed 70 million registered players, driving record engagement levels.

Ubisoft H1 FY21 Earnings

Ubisoft’s H1 FY21 earnings report details a period of strong financial performance, characterized by a significant increase in net bookings and a record operating margin of 15%.

• Ubisoft achieved 754.7 million euros in H1 FY21 net bookings, exceeding targets and reaching a record 15% operating margin.
• Net bookings from back catalog and live services grew 39.4% year-over-year, supported by 100 million unique players across titles like Rainbow Six Siege and Assassin’s Creed Odyssey.
• The company reported a non-IFRS consolidated net income of 90.1 million euros, marking a significant year-over-year improvement.

Ubisoft First-Half 2020-21 Earnings Figures

Ubisoft’s first-half earnings for fiscal year 2020-21 demonstrate strong financial outperformance, characterized by record profitability and significant growth in digital and back-catalog net bookings.