Ubisoft has unveiled its financial outcomes for the initial nine months of the fiscal year, showcasing a modest rise in net bookings accompanied by a decline in revenue. However, the company anticipates achieving record-breaking net bookings for the full year by the culmination of the ongoing quarter.
The third-quarter results were propelled by the launch of Assassin’s Creed Mirage and Avatar: Frontiers of Pandora, along with a substantial surge in bookings from the enduringly popular Rainbow Six Siege.
Here’s a breakdown of the key points:
Financial Figures
For the period ending December 31, 2023:
- Revenue: €1.443 billion (down 4.1% year-on-year)
- Net bookings: €1.449 billion (up 1.6%)
- Digital net bookings: €1.19 billion (down 2.1%)
- Back-catalogue net bookings: €1.05 billion (up 39.7%)
For the quarter ending December 31, 2023 (Q3):
- Net bookings: €626.2 million
- Digital net bookings: €468 million
Noteworthy Highlights
During the conference call, Ubisoft provided further insights into its Q3 performance, highlighting that the net bookings of €626.2 million exceeded earlier projections of €610 million. This achievement was attributed to the combined impact of successful new releases and robust performance from its back catalog.
Digital net bookings amounted to €468 million, representing 75% of the total bookings for the quarter, albeit experiencing an 18% decline year-on-year.
Nevertheless, Ubisoft foresees a significant uptick in bookings for Q4 (ending March 31, 2024), leading to unprecedented annual net bookings. This optimism stems from the promising initial reception of Prince of Persia, the highly anticipated release of Skull and Bones, the forthcoming contribution from free-to-play multiplayer shooter XDefiant, sustained sales from previous quarters, and robust back catalog sales.
Assassin’s Creed Mirage and Avatar: Frontiers of Pandora were identified as pivotal releases in the latest quarter, with Ubisoft executives noting that the Assassin’s Creed franchise notably excelled this quarter, largely due to the halo effect generated by Mirage’s launch.
Legacy titles continued to perform well, with The Crew Motorfest from September maintaining its strong performance since launch, surpassing The Crew 2 in acquisition, engagement, monetization, and net bookings.
There was a notable surge in net bookings and playtime growth (with hours played increasing nearly 60% year-on-year) for Rainbow Six Siege, marking another commendable achievement amidst heightened competition in the live service first-person shooter genre.
Ubisoft reiterated its full-year target of €400 million in non-IFRS operating income.
CEO Yves Guillemot remarked during the earnings call, “This quarter provided us with positive momentum and marked the beginning of our turnaround to consistently creating and delivering high-quality, long-lasting games.”
