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GRTV News - Ubisoft revenue facing a massive decline
The French company has not had a great fiscal year so far...
Audio transcription
"Good morning everyone and welcome back to another episode of GRTV News.
Today we're going to be talking a little bit about Ubisoft.
For the simple reason that over the weekend a financial report came out and it sort of gave us an idea of how Ubisoft has been performing."
"Considering they basically had nothing to show in the latter half of 2024 due to delaying Assassin's Creed Shadows.
The key thing to take from it is that revenue is down and it's down quite a lot.
And that's caused Ubisoft to once again embrace even further cost saving measures.
So we're going to dive into it right away because there's quite a lot of sort of financial stuff to get through."
"But anyway, Ubisoft revenue drops drastically announces further cost saving measures.
The future of the company rise and the success of Assassin's Creed Shadows.
So, yeah, Ubisoft has released its financial results for the nine months ending December 31st, 2024.
Revealing a significant decline in revenue and net bookings."
"Revenue dropped by a whopping 31.4% to 990 million euros.
While net bookings fell 34.8% to 944 million euros.
Digital net bookings also saw a 33.8% decrease and back catalogue net bookings declined 27.7% too.
For the last quarter of 2024 net bookings amounted to 301.8 million dollars."
"With digital net bookings reaching 257.4 million euros.
Despite the downturn, Ubisoft remains optimistic about Assassin's Creed Shadows.
Citing strong pre-sales compared to Odyssey, the franchise's second highest grossing title.
The company is banking on its success to help stabilise its financial standing."
"Early previews have been positive, praising its narrative and immersive experience.
With both characters playing critical roles in the game's storyline.
As well as the quality and complementarity of the gameplay provided by the dual protagonist approach.
Additionally, Ubisoft reported having 36 million monthly active users across both console and PC."
"With the crew motor fest emerging as an unexpected success during the last month of the quarter.
However, Eves also mentioned that the company will implement further cost-cutting measures or restructuring as they delicately put it.
He did not specify the extent of these measures but described them as a necessary yet painful step in the process."
"As a result of disciplined execution, we have announced further targeted restructuring making difficult but necessary choices.
So much now depends on the success of Shadows and whether even that will be enough to prevent a potential acquisition remains to be seen.
So what are your thoughts on Ubisoft's future in Assassin's Creed Shadows?
So yeah, Ubisoft has been in sort of troubled waters for a while now."
"There have been some people that have suggested that it's by design.
That the Guillemot family is sort of trying to reduce the worth of the company so they can further increase their stake in it and take back the control of it.
Whether there's any truth to that is unclear.
One thing that is clear though is that Ubisoft doesn't produce enough games."
"It doesn't get them out the door quick enough.
And the games that it does get out the door are generally really expensive to make.
So all of this is coming together to show that specifically in the final, well I say the final, basically the last nine months of 2024.
Which is pretty much three quarters of this, well I say pretty much, which is three quarters of this current fiscal year."
"Ubisoft's revenue and general finances are all down by almost a third across the board.
Which is a huge drop, like it's a really really big drop.
I would assume that Assassin's Creed Shadows will be a success, particularly in a financial sense.
But whether it will be enough to rectify this massive issue that Ubisoft is facing is a huge ask."
"And I don't think many games will be able to do that.
I think it will be big for Ubisoft but they are desperate for a more balanced stream of games.
And a more cost effective stream of games.
But that's not something we're going to see with Ubisoft because recently it was also stated by Yves Guillemot as well I believe."
"That Ubisoft is very focused on open world and on live service games.
And open world is generally very expensive to make, especially Ubisoft's open worlds.
And they take a long time so not exactly ways to get your finances back in order unless they're massive massive hits.
And then live service, they can be hugely successful and they can generate you a lot of money."
"But they can also be hugely costly and cost you a lot of money.
And we've seen that particularly last year with not just Concord but also X-Defiant as well.
Which is again a Ubisoft game.
So we'll have to see how this goes."
"But the key thing to know is that Ubisoft is still in very very very deep and troubled waters.
But yeah, that's all the time I have in today's episode of GeoTV News.
But I'll be back now tomorrow for the next one.
So until then I hope you enjoy the rest of your Monday and I'll see you on the next one."
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