Ubisoft Announces Losses In Line With Guidance During Restructuring Process

Ubisoft has presented its figures for the financial year ending in March. Turnover fell significantly, and the result slipped into negative territory. Nevertheless, confidence prevails, as both outcomes were expected given the ongoing reorganisation process.

These are certainly not figures to be particularly happy about. Ubisoft's net bookings for the financial year ending March 2021 amounted to €1.85 billion – a 20.5% decrease compared to the previous year. Operating income, according to IFRS accounting standards, was €82.6 million. Non-IFRS earnings were also in the red, showing a loss of €15.3 million.

"This year has been a challenging one for Ubisoft, with mixed dynamics across our portfolio, amid intense industry competition. Despite these headwinds, Ubisoft managed to deliver positive free cash flow generation over the fiscal year, reflecting the discipline applied across the Group," says Yves Guillemot, CEO of Ubisoft.

There is a reason why the Ubisoft boss sounds far less pessimistic than the figures might initially suggest. The negative result is within the communicated expectations. In fact, Ubisoft is currently undergoing a transformation that is unprecedented in the games industry. By the end of the year, with the help – and above all the funding – of Tencent, a new structure is to be created in which Ubisoft's three top IPs will be spun off into an independent company. It is a change that cannot happen without leaving painful traces in the organisation.

"A major step in this transformation was the announcement in March of the creation of a new subsidiary, backed by Tencent as a core strategic partner. 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," says Guillemot.

And he continues: "Additionally, after a review of our pipeline, we have decided to provide additional development time to some of our biggest productions in order to create the best conditions for success. As a consequence, FY2026-27 and FY2027-28 will see significant content coming from our largest brands. Ubisoft is entering a new chapter, and I am confident in our ability to build a stronger, more resilient company for the benefit of all our stakeholders."

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