Ubisoft revenue falls 17.5% in FY 2024-25 as it eyes expansion of key IPs

Ubisoft generated €1.9 billion ($2.1bn) in revenue for FY 2024-25, representing a 17.5% decline year-on-year.

Net bookings fell by 20.5% to €1.85bn ($2bn), with digital net bookings down 20.2% to €1.59bn ($1.8bn). Meanwhile,  back-catalogue net bookings decreased 13.5% to €1.3bn ($1.46bn). 

Ubisoft reported strong activity metrics for console and PC due to Assassin's Creed: Shadows and Far Cry. Moreover, the company said its other brands attracted over 100 million unique active players in FY2024-25. 

Furthermore, Ubisoft is planning a new organisational structure by year-end to improve game quality and capital allocation, including creating a new subsidiary to grow key IPs and partnering with Tencent to eliminate net debt. 

The company said its cost reduction program exceeded its initial €200m ($225m) goal and aims for another €100m ($112m) reduction within two years.

A challenging year

Aside from establishing its new subsidiary, Ubisoft said it expects to close the related transaction this year, eliminating net debt. 

The company has also decided to extend development time for major productions, with significant content from its biggest brands expected in FY2026-27 and FY2027-28.

“This year has been a challenging one for Ubisoft, with mixed dynamics across our portfolio, amid intense industry competition," said Ubisoft CEO and co-founder Yves Guillemot.

“Despite these headwinds, Ubisoft managed to deliver positive free cash flow generation over the fiscal year, reflecting the discipline applied across the Group.  Aware of the challenges ahead, we took decisive steps to continue strengthening the company’s future. 

He added: “Focused on accelerating the growth of three of our most iconic IPs, this new subsidiary will play a pivotal role in building evergreen, billion-euro brand ecosystems. 

“We are progressing steadily toward the closing of the transaction by year-end, a key milestone that will fully deleverage the Company and position us for sustainable, long-term growth.”