Half Year 2025 Ubisoft Entertainment SA Earnings Call Transcript
Key Points
- Ubisoft Entertainment (UBSFF) achieved significant milestones with its major franchises, including Assassin's Creed, Rainbow Six Siege, and Far Cry, each generating billions in consumer spending over the past decade.
- The company reported a 12% year-over-year increase in back catalog sales, excluding partnerships, highlighting the enduring value of its brand portfolio.
- Ubisoft Entertainment (UBSFF) has made substantial progress in its cost reduction program, achieving over EUR200 million in savings compared to two years ago.
- The company has seen a 4% year-over-year increase in unique active users, with strong engagement metrics across its console and PC platforms.
- Ubisoft Entertainment (UBSFF) is focusing on improving game quality and player experience, as seen with the updates and enhancements for Star Wars Outlaws and the upcoming Assassin's Creed Shadows.
- H1 net bookings were down 22% year-on-year, reflecting a high comparable base from the previous year and underperformance in new releases like Star Wars Outlaws.
- The company experienced a decline in gross margin due to the absence of high-margin partnerships that were present in the previous year.
- Ubisoft Entertainment (UBSFF) reported a negative free cash flow of EUR126 million for the first half of the fiscal year.
- The company is facing challenges in the first-person shooter market, with games like XDefiant not meeting expectations.
- There is ongoing pressure to improve execution and address polarized comments around Ubisoft Entertainment (UBSFF), which could impact its reputation and sales potential.
Good day and thank you for standing by. Welcome to the Ubisoft first-half fiscal year '25 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Yves Guillemot. Please go ahead.
Welcome, everyone, and thank you for joining the call today. Despite a [set back] we are continuing to deeply transform the Ubisoft in order to restore the level of creativity and innovation that build Ubisoft's success while delivering stronger execution and selectability. Even with our first-half performance fell short of our initial expectation, there are still been some positive aspects. First, the solid underlying performance of our back catalog that was at double digits, excluding partnerships. Second, we achieved new milestones in terms of consumer funding metrics.
Over the past decade, the Assassinâs Creed franchise has reached around EUR4 billion, Rainbow
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