Paris France – Through the whole period 2022-2023, we didn’t make a profit until now, but Ubisoft is back in the black now !The French gaming giant, Ubisoft, disclosed successful 2023-2024 finance year, with the final quarter being the most impressive period and the reason for the profit.
Here’s the breakdown:
- Profitability restored: Ubisoft made the razor-thin profitability improvement from a net loss of €494. In 2022-2023 -11 million changed into €157 of profit. 8 million in 2023-2024.
- Sales surge: The sum of revenue went up 26%, thus. 8% year-over-year, reaching €2. 3 billion.
- Net bookings soar: “Net bookings” (Ubisoft’s own approach with deferred income subtracted) increased much faster, amounting to 33% of the growth. 5% to €2. 32 billion.
- Strong Q4: With quarter 4 being an absolute success, sales increase to €858 – more than twice of the pre-quarter levels. Declining passenger numbers in the first four months of 2020, as opposed to the same time frame last year. This boost can be attributed to two major releases: along with the latest release of the new Prince of Persia video game, and once again Skull and Bones.
- Back catalog shines: Along with the launch of new Ubisoft titles like Assassin’s Creed Mirage and Rainbow Six Siege, the existing highly successful game titles also posted strong performances.
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Yves Guillemot, the CEO of Ubisoft, expressed optimism which he referred to as “a first bold step to our recovery. ” according to him, the tactic of the company of evolving its business model to one that has stable and more recurring revenue streams was very fundamental to the success.
Looking ahead, Ubisoft has two highly anticipated games slated for release in 2024-2025: Remaking the classic game Star Wars: Outlaws and the immersive Assassin’s Creed: Shadows.
Moreover, the company has made savings as it cut down operations cost by €150 million from the nearest 1 year and has an ambition of saving €200 million by 2025-2026. However, the elimination of jobs was the unbearable price for generating profit, and in the last 18 months, more than 1700 employees were laid off across the corporation.
