Ubisoft reported a 9.2% decline in net bookings for the first quarter, citing a "high comparison base" from the same period the previous year as the reason for the decrease

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Ubisoft's financial performance for the first quarter was recently released, showing net bookings totaling €255.8 million. This figure surpassed prior forecasts, although it marked a 9.2% drop compared to the previous year.

The dip in year-on-year results is partly due to exceptionally strong performance in the same quarter last year, driven by Assassin's Creed Shadows' launch in March.

Key Financial Figures:

Revenue: €268.2 million, a decrease of 13.7% from the previous year
Net bookings: €255.8 million, down 9.2% year-on-year
Digital net bookings: €206.2 million, experiencing a 17.6% decline compared to last year
Back catalogue net bookings: €221 million, a reduction of 15.1% year-on-year

The boost in net bookings is largely credited to the mobile game Invincible: Guarding the Globe, aligned with the release of the TV series' fourth season and a new character introduction. These elements contributed to an upturn in player acquisition, engagement, and spending.

Tom Clancy's Rainbow Six Siege met performance expectations, with a minor uptick in daily active users recorded after the release of Siege X.

The report highlighted The Division 2's Year 8 Season 1 launch, which drove a year-over-year monetization increase through virtual currency usage and improved DARPU figures.

Additionally, The Crew Motorfest witnessed growth in user activity and game sessions following its NASCAR-themed season and availability via PlayStation's PS+ service.

Starting the second quarter with momentum, Assassin's Creed: Black Flag Resynced debuted, achieving 3.5 million sales in just the first two weeks, and surpassed annual sales goals. On PCs, the franchise achieved an all-time high on Steam with 105,000 concurrent players, marking a notable milestone for any Assassin's Creed game on the platform, bolstered by strong sales in the United States and China.

Yves Guillemot, CEO of Ubisoft, commented on the strong start of Assassin’s Creed Black Flag Resynced as an "encouraging proof point," emphasizing both the franchise's lasting appeal and the preliminary positive effects of the company's strategic transformation to deliver high-quality gaming experiences.

The company has been strengthening its "group-wide transformation" plans by establishing Creative Houses. Christoph Hartmann, former Amazon Games VP and co-founder of 2K, was appointed as the leader of Creative House 2, which will manage franchises like Splinter Cell, The Division, and Ghost Recon as well as March of the Giants.

Furthermore, Ubisoft underwent some restructuring, shutting down studios in Winnipeg and Belgrade and making global cuts to publishing roles, which might affect around 380 positions. Proposed plans include dedicating Ubisoft Barcelona solely to the Rainbow Six franchise, though the studio faced layoffs post the Black Flag Resynced launch, prompting staff protests.

Looking ahead, Ubisoft anticipates a high single-digit percentage decline in net bookings and a comparable negative impact on the non-IFRS operating margin for the second quarter, forecasting net bookings of approximately €370 million. CEO Guillemot expressed confidence in the company's remodeled strategy enhancing its status as a premier creator of compelling entertainment, aiming for improved performance and value creation in the long term.