Ubisoft misses estimates as net bookings fall 20.5% YoY

Investing.com -- Ubisoft Entertainment (EPA:UBIP) reported lower-than-expected earnings for fiscal year 2024-25 as net bookings declined 20.5% year-over-year, reflecting weaker partnerships and intense industry competition. The video game publisher posted an adjusted loss per share of €0.56, wider than analysts’ estimates of a €0.47 loss.

Net bookings for the full year came in at €1.85 billion, slightly below the company’s target and down from €2.32 billion in the previous year. Sales fell 17.5% to €1.90 billion, though marginally beating expectations of €1.89 billion. Ubisoft reported an operating loss of €82.6 million compared to a profit of €313.6 million a year earlier.

Despite the challenging year, CEO Yves Guillemot highlighted some positives, stating: "Assassin’s Creed Shadows reaffirmed the power of the Assassin’s Creed brand, with a highly favorable community response from long-time fans and new players alike."

The company generated positive free cash flow of €128 million, ahead of its target. However, Ubisoft expects approximately breakeven non-IFRS operating income and negative free cash flow in fiscal 2025-26 as it continues its transformation efforts.

Looking ahead, Ubisoft projects stable net bookings year-over-year for fiscal 2025-26. The company plans to announce a new organizational structure by year-end to "best serve player needs, deliver superior game quality and drive disciplined capital allocation."

UbiSoft Entertainment Inc (OTC:UBSFY) stock dropped 0.6% in over-the-counter trading as of 11:45 ET following the results.