Ubisoft has released its financial results for the nine-month period ending December 31, 2024, revealing a significant downturn in revenue and net bookings. Despite this decline, the company remains optimistic about future prospects, particularly with the upcoming launch of Assassin’s Creed Shadows.
Key Financial Figures
For the first nine months of the fiscal year, Ubisoft reported:
- Revenue: €990 million (down 31.4% year-on-year)
- Net bookings: €944 million (down 34.8%)
- Digital net bookings: €784 million (down 33.8%)
- Back-catalogue net bookings: €762.3 million (down 27.7%)
For the three-month period ending December 31, 2024, Ubisoft recorded:
- Net bookings: €301.8 million (down 51.8%)
- Digital net bookings: €257.4 million
Despite these declines, Ubisoft noted that the Q3 net bookings figure aligned with its revised expectation of €300 million.
Optimism Surrounding Assassin’s Creed Shadows
Ubisoft has high hopes for Assassin’s Creed Shadows, set for release on March 20, 2025. The company reports that pre-sales are “tracking solidly” and are comparable to Assassin’s Creed Odyssey, the franchise’s second-highest earning title.
CEO Yves Guillemot emphasized the game’s potential, stating: “Early previews have been positive, praising its narrative and immersive experience, with both characters playing critical roles in the game’s storyline. Shadows is the franchise’s most ambitious entry yet.”
Performance of Existing Titles
Despite overall financial struggles, some Ubisoft titles showed resilience:
- Rainbow Six Siege delivered strong player engagement, with an increase in session days per player and achieving its highest monthly average revenue per paying user since its 2015 release.
- The Crew Motorfest saw record-high monthly player numbers, with session days increasing 38% year-over-year and retention and monetization metrics significantly outperforming those of The Crew 2.
Cost Reduction and Studio Restructuring
Ubisoft is ahead of schedule on its cost reduction plan, which included layoffs and studio closures:
- Recent closures: Ubisoft Leamington, Ubisoft Reflections, Ubisoft Düsseldorf, and Ubisoft Stockholm.
- December 2024: Announced the sunset of XDefiant, leading to the closure of two production studios and nearly 300 job cuts.
- Further restructuring planned: Ubisoft has not disclosed the full impact on employees but expects to exceed its cost-cutting targets by FY25 and continue reductions into FY26.
Potential Acquisition by Tencent?
Ubisoft is conducting a strategic review of its operations, aiming to maximize value for stakeholders. One possible outcome includes a buyout from Tencent, a rumor that first surfaced in October 2024. While CFO Frederick Duguet declined to comment directly on these speculations, he confirmed that Ubisoft would inform the market should any transaction materialize.
Looking Ahead
Ubisoft is banking on the success of Assassin’s Creed Shadows and potential new partnerships to drive revenue growth in the next quarter. With a dedicated player base of 36 million monthly active users and growing playtime statistics, the company remains focused on long-term stability despite immediate financial setbacks.
As the industry navigates economic challenges and shifting player behaviors, Ubisoft’s ability to adapt and deliver successful titles will be critical in determining its future trajectory.
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