Ubisoft Reports FY23-24 Earnings and Plans

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Ubisoft Reports Strong Financial Performance for Fiscal Year 2023-24

Ubisoft released its financial earnings report today, showcasing impressive results for the full fiscal year 2023-24. The company announced net bookings of approximately €2.3 billion, equivalent to $2.1 billion, representing a significant 33% year-over-year improvement and aligning with its stated targets. This success can be attributed to stellar performances from flagship franchises such as Rainbow Six and Assassin’s Creed.

Strategic Shifts and Goals

Ubisoft has strategically realigned its focus towards two core pillars: the development of open-world adventure games, a genre in which it excels, and the expansion of its games-as-a-service offerings. During the earnings call, CEO Yves Guillemot emphasized that the current fiscal year serves as a pivotal initial step in returning Ubisoft to a trajectory of growth. By prioritizing these key verticals and capitalizing on ongoing technological investments to drive and sustain a competitive edge, the company aims to foster growth, ensure recurring revenue streams, gradually enhance operational income, and generate robust free cash flow.

Operational Efficiencies and Workforce Adjustments

As part of its €200 million cost reduction program, Ubisoft has implemented measures that have led to a reduction of 1,700 employees between September 2022 and March 2024. Despite these adjustments, the total employee count stands at 19,011 as of the end of March. Frédérick Duguet, Ubisoft’s CFO, affirmed that while further work lies ahead in forthcoming years, the company remains on track to achieve free cash flow generation by FY25 and meet its annual €200 million cost reduction objective by FY26.

Game Performance Overview

Ubisoft provided insight into the performance of its various titles, alongside unveiling details about upcoming projects. The company’s FY25 lineup comprises two premium titles, Star Wars Outlaws and Assassin’s Creed Shadows, as well as three free-to-play titles: XDefiant, The Division Resurgence, and Rainbow Six Mobile. Notably, Skull and Bones and Prince of Persia: The Lost Crown have exhibited strong player engagement, indicating positive reception. Additionally, The Crew Motorfest has outperformed its predecessor, The Crew 2, in terms of monetization and net bookings. Ubisoft underscored the enduring appeal of its existing catalog, with stalwarts like Rainbow Six Siege and Assassin’s Creed continuing to attract new players.

Strategic Shifts in Development

Despite its overall success, Ubisoft made the strategic decision to cease development on The Division Heartland as part of its heightened selectivity in investments. The company redirected resources towards more promising opportunities such as XDefiant and Rainbow Six. The Division Heartland, initially announced as a free-to-play third-person shooter set in rural America in 2021, became a casualty of this strategic realignment.

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Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
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