Ubisoft reports Q3 revenue halved, with its cost-cutting program going "ahead of schedule"

Ubisoft continues to struggle amid ongoing restructuring and cost-cutting initiatives. The French publisher has reported significant declines in revenue and bookings for the third quarter ended December 31, 2024.

Financial highlights

According to its earnings release, Ubisoft reached €318.1 million in net revenue in the third quarter, down 47.5% compared to the same period last year.
Net bookings fell 51.8% to €301.8 million, in line with previously revised forecast of €300 million.
Bookings from back catalog titles reached €286.1 million (-20.5%), accounting for 88.8% of the total.
Digital net bookings fell 45% year-over-year to €257.4 million, while bookings from recurring payments (IAP, subscriptions, ads, DLC, etc.) amounted to €143.7 million (-17.6%).
North America remained the main region by bookings, accounting for 49% of the total. It is followed by Europe (35%). The top platforms were consoles (54%), PC (26%), and mobile (10%).

Ubisoft currently expects its net bookings to reach €1.9 billion for the full year ending March 31, 2025. That would represent an 18% decline from €2.32 billion in FY24.
It also forecasts a break-even operating profit, compared to an operating income of €313.6 million in the previous fiscal year.
The publisher expects its cost-cutting initiatives to exceed €200 million for the full FY25. The program is going “ahead of schedule” following the shutdown of XDefiant and studio closures.
“We plan to pursue our efforts in FY26, going beyond the initial target by a significant margin,” CEO CEO Yves Guillemot said in a statement. So we may expect more closures and layoffs.
Ubisoft continues to review “various transformational strategic and capitalistic options” with the help of an independent committee led by Claude France, chair of the Audit and Risk Committee of the Ubisoft Board of Directors.

Ubisoft’s game metrics and expectations for Assassin’s Creed Shadows

As of December 31, 2024, Ubisoft’s monthly active users (MAU) stood at 36 million, “broadly stable” year-over-year. Playtime and session days per player grew 4% and 7%, respectively.
In Q3, session days for Rainbow Six Siege grew year-over-year (no exact figures). The Assassin’s Creed franchise performed “strongly,” driven by the Steam release of Assassin’s Creed Mirage, while session days for the Crew series increased 38% year-over-year.
Pre-orders for Assassin’s Creed Shadows are in line with those of Assassin’s Creed Odyssey, which Ubisoft describes as the “second most successful entry of the franchise.”
“I want to commend the incredible talent and dedication of the entire Assassin’s Creed’s team, who is working tirelessly to ensure that Shadows delivers on the promise of what is the franchise’s most ambitious entry yet,” Guillemot noted.
During an earnings call, Guillemot also told investors that Ubisoft plans to build a big pipeline over the coming years across its two core verticals: single-player open world action games and live service products. “That’s what we want to deliver year after year,” he said.