Ubisoft Entertainment (UBI) Q3 24/25 earnings summary

Executive summary

• Q3 net bookings reached EUR 302 million, aligning with revised expectations; nine-month net bookings totaled EUR 944 million, down 34.8% year-over-year.

• Assassin's Creed Shadows launches March 20, with positive early previews and preorders tracking in line with previous franchise highs.

• Cost reduction initiatives are ahead of schedule, set to exceed EUR 200 million by end FY2024-25, driven by studio closures and restructurings.

• A formal, competitive strategic review process is underway, overseen by an independent board committee.

Financial highlights

• Q3 net bookings: EUR 302 million; back catalog net bookings: EUR 268 million, down 26% year-on-year; nine-month net bookings: EUR 944 million, down 34.8%.

• IFRS 15 sales for Q3 were EUR 318.1 million, down 47.5% year-on-year; nine-month sales were EUR 990 million, down 31.4%.

• Total digital net bookings: EUR 257 million for Q3, down 45% year-on-year, representing 85% of total; nine-month digital net bookings: EUR 784 million, 83% of total.

• PRI: EUR 144 million, down 18% year-on-year, impacted by XDefiant discontinuation and refunds.

• Mobile bookings: EUR 29 million for the quarter.

Outlook and guidance

• FY2024-25 net bookings expected around EUR 1.9 billion, with break-even adjusted operating income and free cash flow.

• Q4 net bookings projected to grow year-on-year, driven by Assassin's Creed Shadows and back-catalog strength.

• Cost reduction target of EUR 200 million to be exceeded by FY25, with further reductions planned for FY26.