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.

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

• A formal review of strategic options is underway, overseen by an independent Board committee.

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

Financial highlights

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

• IFRS 15 sales for Q3 were EUR 318.1 million, down 47.5% year-over-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 net bookings; digital net bookings for nine months were EUR 784 million, down 33.8%.

• Back-catalog net bookings for nine months reached EUR 762.3 million, down 27.7% year-over-year.

• Q3 net bookings by region: 49% North America, 35% Europe, 16% Rest of World; by platform: 54% consoles, 26% PC, 10% mobile, 10% others.

Outlook and guidance

• Fiscal year 2025 net bookings expected around EUR 1.9 billion; guidance reaffirmed.

• Adjusted operating income and free cash flow expected to be approximately break-even.

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

• Stock-based compensation expected at EUR 55 million; non-IFRS net financial charge at EUR 45 million.