30.10.2024

Ubisoft's financial results for the first half of the 2024-2025 fiscal year have significantly declined, with "Star Wars Outlaws" falling short of expectations

Image credit: Ubisoft's Rainbow Six Siege

Ubisoft reported results for the first half of its financial year, highlighting a "solid underlying performance" in its existing game library and live services, despite a 19.6% decline in sales to €672 million compared to the previous year.

The company reported progress in its cost reduction efforts and its review of a "player-centric and gameplay-first approach," making strides to address the divides in opinions surrounding Ubisoft to safeguard its reputation and enhance game sales potential. Additionally, Ubisoft's global workforce has seen a reduction of over 2,000 employees.

The numbers

For the six months ending September 30, 2024:

  • Sales: €672 million (a reduction of 19.6% compared to the previous year)
  • Net bookings: €642 million (down by 21.9%)
  • Digital net bookings: 527 million (a decrease of 26.5%)
  • Back-catalogue net bookings: 494 million (a drop of 28.95%)

The highlights

In the second quarter, net bookings were €352 million. Although there was a year-on-year drop in back-catalogue net bookings, a 12% increase was noted for the quarter.

Throughout the six months leading up to September 30, 2024, game playtime and session days increased by 9% and 6% respectively, compared to the previous year, with monthly active users (MAUs) reaching 37 million, marking a 3% increase year-on-year. This figure includes nearly three million new accounts being added each month.

Despite positive reviews and user scores from various platforms, the sales of Star Wars Outlaws did not meet expectations. Meanwhile, Ubisoft reported strong engagement with the Assassin's Creed and Rainbow Six Siege franchises, each attracting over 30 million active users.

Sales from the Assassin’s Creed series have amassed approximately €4 billion in the past ten years, Rainbow Six Siege has generated over €3.5 billion, and Far Cry has approached €2 billion. Alongside titles like The Division, Ghost Recon, and Just Dance, Ubisoft boasts six franchises that have exceeded €1 billion in consumer spending.

Ubisoft CEO Yves Guillemot stated, "Despite recent setbacks, we are committed to transforming Ubisoft by reviving our creative roots and enhancing our execution and predictability."

Guillemot added, "Our focus has shifted back to prioritizing execution and a player-centric mindset in everything we do. For instance, enhancements to Star Wars Outlaws reflect feedback as we prepare for its Steam release, alongside the first story pack and the holiday season. Furthermore, we are dedicating additional time to the forthcoming ambitious addition to the Assassin’s Creed series, ensuring a polished, engaging experience at launch that resonates with players."

In the past semester, strict control over hiring, targeted restructurings, and reduced external spending have propelled our cost-saving efforts forward, with over €200 million saved compared to two years ago on an annualized basis. Future efforts will focus on fostering strong cash-flow generation," Guillemot concluded.

This report has been updated to reflect the timeline of certain figures.
gamesindustry.biz
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