Ubisoft net bookings drop 21.9% in H1

Investing.com -- Ubisoft reported its first half of fiscal 2024-25 results on Wednesday , posting a 21.9% decline in net bookings, totaling €642.3 million, down from €822.4 million during the same period last year.

The company's earnings release on October 30 highlighted ongoing challenges, despite positive signs in its back catalog and live services.

The decline comes amid lower digital net bookings, which dropped 26.5% year-over-year, with back-catalog bookings decreasing 28.9%.

However, excluding partnerships, back-catalog performance improved by  12 %, reflecting Ubisoft's portfolio strength in titles like Rainbow Six Siegeand Assassin's Creed.

CEO Yves Guillemot emphasized the need for continued focus on creativity and execution: "Despite recent setbacks, we are continuing to transform Ubisoft to restore the level of creativity and innovation that built Ubisoft's success."

The company noted an increase in player engagement, with Playtime and Session Days up 9% and 6% year-over-year, respectively. Monthly active users reached 37 million, boosted by Rainbow Six Siege, which showed double-digit growth in engagement.

Ubisoft reiterated its full-year guidance, aiming for €1.95 billion in net bookings and break-even non-IFRS operating income. For Q3, it expects net bookings to come in at approximately €380m.

Despite first-half losses, CFO Frédérick Duguet expressed confidence in the company's outlook: "This outlook reflects robust free cash flow generation in the second half of the year. In addition, we continue exploring the sale of non-core assets as part of our broader strategy to focus on our two core verticals, Open World Adventures and GAAS-native experiences, as well as enhance financial flexibility."

The company continues to work on its cost reduction program, stating it is "well on track.

Source: Investing.com