Ubisoft's H1 report: revenue down 20%, €20M to polish AC Shadows, Star Wars Outlaws and XDefiant underperform

Ubisoft has released its financial report for the six-month period ended September 30, 2024. The French company saw declines across its key business metrics following the lower-than-expected launch of Star Wars Outlaws.

Financial highlights

• According to its earnings release, Ubisoft reached €671.9 million in revenue in the first half of FY25, down 19.6% compared to the same period last year.
• Net bookings fell 21.9% year-over-year to €642.3 million. Player recurring investment (DLC, in-app purchases, subscriptions, etc.) amounted to €312.7 million (-39.2%).
• Bookings from back catalog titles reached €494.2 million (-28.9%), accounting for 76.9% of the total.
• Console remained the main platform by net bookings, but its share decreased from 72% to 60%. PC, on the other hand, rose from 14% to 23% of the total. Mobile remained flat at 8%.
• Operating loss was €271.8 million, compared to an operating profit of €16.1 million in the same period last year.

• CEO Yves Guillemot noted that Ubisoft’s cost reduction program is moving according to plan. In H1, the company saved more than €200 million thanks to “strict control on recruitments, targeted restructurings and lower external spend.”
• Since September 2023, Ubsioft’s headcount has been reduced by 744 employees to 18.6k. Over the past 24 months, the company has cut its workforce by more than 2,000 people.
• Ubisoft CFO Frédérick Duguet added that the publisher is “exploring the sale of non-core assets” as part of its strategy to refocus on two core areas: open world adventures and live service experiences.

Game metrics and updates

• In H1, overall playtime increased by 9% year-over-year, while session days were up 6%. Rainbow Six Siege was the main driver, seeing a double-digit growth in these indicators.
• Monthly active users (MAU) grew 3% year-over-year to 37 million, with nearly 3 million new accounts created per month.
• Over the past 12 months, Ubisoft attracted 138 million unique players (+3%) across PC and consoles. Rainbow Six Siege and the Assassin’s Creed franchise enjoyed over 30 million unique users each.
• Sales of Star Wars Outlaws fell short of the company’s expectations. Ubisoft is now actively working on improving the game and its mechanics, hoping to see an increase in sales during the holiday season.
• As the publisher noted during an earnings call, XDefiant also missed internal targets. The free-to-play shooter had a strong launch, but its metrics have been declining over the past few months. Insider Gaming previously reported that the game has been struggling to retain players, with its active player count reaching just 20k CCU across all platforms.
• Ubisoft, however, is now “working on improving hit registration and net code” in XDefiant. The company also plans to expand its live service business with new titles such as the upcoming mobile shooter Rainbow Six Mobile.
• As for Assassin’s Creed, the game is still expected to launch on February 14, 2025. Ubisoft explained that it was delayed due to criticism of Star Wars Outlaws’ technical issues. That’s why the company gave the devs more time and allocated an additional €20 million for polishing.