Ubisoft reports H1 net bookings EUR772.4M, up 20.3% y/y

Reports H1 IFRS-15 sales EUR657.8M, down 2.1% year-over-year. Yves Guillemot, Co-Founder and Chief Executive Officer of Ubisoft (UBSFY), said “The closing of our strategic transaction with Tencent (TCEHY) – which will see Tencent become a minority shareholder in our new subsidiary, Vantage Studios – is now imminent, as all conditions precedent have been satisfied. This marks a pivotal milestone in Ubisoft’s transformation, significantly strengthening our financial position by bringing in EUR 1.16 billion of cash, enabling the Group to deleverage, as planned. It will also empower Vantage Studios to accelerate the growth of our three flagship IPs under a dedicated leadership team. In a highly competitive market, Ubisoft delivered net bookings above guidance, on the back of stronger-than-expected partnerships that underscore the appeal and reach of our brands. Our portfolio showed contrasting dynamics this quarter, with softer trends for Rainbow Six Siege, reflecting a phase of evolution for the game in an intense FPS environment, offset by strong performances across the rest of the catalog. The Assassin’s Creed franchise exceeded our expectations, confirming its positive momentum and ability to engage players over time. The Division 2 also continued to perform strongly, benefiting from the momentum of the Battle for Brooklyn DLC, with the game’s first semester already exceeding last year’s annual bookings. Additionally, the progress we’ve made in addressing our fixed cost base brings with it confidence that we can continue to drive structural efficiencies across the organization that, together with top line growth, will contribute to ensure a return to strong cash generation in the coming years. Vantage Studios represents a key element of the transformation of the company towards a new operating model built around Creative Houses. We will have finalized the design of this new organization by the end of the year. These Creative Houses will be autonomous, efficient, focused and accountable business units, each with its own leadership, creative vision and strategic roadmap. This Group-wide transformation reflects our ambition to renew how we create and operate in order to deliver great games for our players and lasting value for our partners and shareholders. The full details of this new operating model will be unveiled in January.”