France's Ubisoft Full-Year Net Bookings Fall 20.5%

Ubisoft's Net Bookings Decline by 20.5% in 2023

(Reuters) -France's largest video game maker Ubisoft on Wednesday posted a 20.5% fall in full-year net bookings as the company has faced issues with delayed releases and the underperformance of some of its leading titles.

The maker of the blockbuster franchise "Assassin's Creed" reported net bookings of 1.85 billion euros ($2.07 billion) for the year to March 31, slightly below its guidance of around 1.9 billion euros.

Ubisoft plans to announce a new overall group organisation by the end of the year, with the objective to best serve player needs, deliver superior game quality and drive disciplined capital allocation, it said in a statement.

It expects full-year 2025-2026 stable net bookings year-on-year and roughly break-even non-IFRS operating income. Net bookings for the first quarter are forecast at 310 million euros.

Ubisoft also expects to return to positive non-IFRS operating income and free cash flow generation in 2026-2027, it said.

"After a review of our pipeline, we have decided to provide additional development time to some of our biggest productions to create the best conditions for success," CEO Yves Guillemot said in the statement.

As a result, he said, the next two years would see "significant content coming from our largest brands."

In March, the company faced a make-or-break moment with the launch of the newest instalment in "Assassin's Creed" franchise as the company grappled with falling revenue, a sinking stock price and takeover speculation.

"Aware of the challenges ahead, we took decisive steps to continue strengthening the company's future. The launch of "Assassin's Creed Shadows" was a defining moment," Guillemot said.

The release had reaffirmed the power of the brand, he added, and had received a "highly favourable community response".

Ubisoft said that the game delivered the second-highest Day 1 sales revenue in franchise history and set a new record for Ubisoft's Day 1 performance on the PlayStation digital store.

($1 = 0.8920 euros)

(Reporting by Adrianna Ebert in Gdansk; Editing by Joe Bavier)