Ubisoft, the renowned French game publisher, has experienced a significant drop in its revenue, plunging by 47.5% in the three-month period ending in December.
Delving into their Q3 financials, Ubisoft recorded a revenue intake of €318.1 million ($344.2 million), which is nearly half of what they achieved last year, having brought in €606.4 million ($637 million) during the same period. Their net bookings also took a hit, plummeting by 51.8% to €301.8 million.
Interestingly, 88% of these bookings, which accounted for €268 million ($281.6 million), came from their back catalog. However, this segment was still down when compared to the previous year.
Ubisoft’s CEO and co-founder, Yves Guillemot, addressed investors with a focus on their much-anticipated game, Assassin’s Creed Shadows, set to launch on March 20. He shared that the initial reaction to the previews has been positive, highlighting the game’s narrative depth and immersive qualities. Players will find that the dual protagonist approach plays a pivotal role in the storyline, providing a balanced and engaging gameplay experience. Guillemot praised the Assassin’s Creed team’s dedication, emphasizing their relentless efforts to make Shadows the franchise’s most ambitious release to date.
On the financial side, Ubisoft is making strides with their cost reduction strategy. Guillemot mentioned that the company, through disciplined management, is announcing further strategic restructurings. Though challenging, these decisions are deemed essential and are expected to surpass their original cost-saving goals by the end of FY25. The company plans to continue these efforts into FY26, aiming to exceed their initial targets significantly.
To wrap up, Guillemot spoke about the ongoing formal review process of their strategic options, which was initiated earlier this year. The ultimate aim of this review is to maximize the value of their assets for stakeholders and to enhance conditions for game development in the rapidly changing market landscape. He expressed confidence in exploring various paths to achieve these ambitious goals.
