Ubisoft Reports Mixed FY2024-25 Earnings Amid Transformation

Ubisoft ( (UBSFY) ) has released its Q4 earnings. Here is a breakdown of the information Ubisoft presented to its investors.

Ubisoft, a leading video game company known for its popular franchises like Assassin’s Creed and Rainbow Six, has released its earnings report for the fiscal year 2024-25. The company operates in the interactive entertainment industry, creating immersive gaming experiences across various platforms.

In its latest earnings report, Ubisoft highlighted a challenging year with mixed results. The release of Assassin’s Creed Shadows was a significant success, outperforming previous titles in the franchise. However, the company’s net bookings fell slightly below targets, primarily due to timing issues with partnerships. Despite these challenges, Ubisoft achieved a positive free cash flow of €128 million, driven by strong operating cash flow.

Key financial metrics revealed a decline in net bookings by 20.5% to €1.85 billion, with digital net bookings comprising 85.9% of the total. The company’s non-IFRS operating income was in line with guidance, while free cash flow exceeded expectations. Ubisoft’s balance sheet remains solid, with a cash position of around €1 billion and improved net debt of €885 million. The company is undergoing a transformation, including a new subsidiary backed by Tencent, aimed at accelerating growth for its iconic IPs.

Looking ahead, Ubisoft anticipates stable net bookings for the fiscal year 2025-26, with a focus on transforming its portfolio and reducing costs. The company expects to achieve a consolidated net debt position of around zero following the Tencent transaction. Ubisoft is optimistic about returning to positive non-IFRS operating income and free cash flow generation in the fiscal year 2026-27, supported by significant content releases from its largest brands.