Ubisoft Entertainment (UBI) Q1 24/25 earnings summary

Executive summary

• Q1 net bookings reached €290 million, up 8.3% year-on-year, surpassing the €275 million target, driven by XDefiant's strong launch and growth in Rainbow Six Siege and Assassin's Creed franchises.

• XDefiant exceeded expectations, acquiring over 10 million players in its first two weeks and topping viewership charts during launch.

• Ubisoft Forward event showcased upcoming titles Star Wars Outlaws and Assassin's Creed Shadows, both set for release in FY25 and receiving positive press and community sentiment.

• Focus remains on open world adventures and games-as-a-service (GaaS) experiences, with a robust content pipeline for live titles.

Financial highlights

• Q1 net bookings: €290 million (+8.3% year-on-year), with digital net bookings at €257 million (88.7% of total).

• IFRS 15 sales for Q1 were €323.5 million, up 12% year-on-year.

• Player Recurring Investment (PRI): €159 million (+25% year-on-year), 55% of total net bookings.

• Back catalog bookings: €249 million (+2% year-on-year), with console and PC PRI up 17%.

• Mobile bookings stable at €28 million, representing 10% of net bookings.

Outlook and guidance

• Fiscal 25 guidance reaffirmed: solid net booking growth, slight non-IFRS operating income growth, and positive free cash flow expected.

• Q2 net bookings expected around €500 million, reflecting initial sales of Star Wars Outlaws.

• Back catalog for the full year expected to be down overall, but to grow when excluding B2B partnership impacts.

• First Activision Blizzard games to be added to Ubisoft Plus by fiscal year-end.

• Rainbow Six Mobile and The Division Resurgence delayed beyond FY25.