Ubisoft forecasts a return to profit for 2023-2024, despite a difficult year marked by the postponement of several big games. The French video game publisher announces operating profit of around 400 million euros.
Ubisoft, penalized by delays in the release of certain games, recorded an annual net loss of 494,2 million euros for the 2022-2023 financial year. However, the company expects a return to profit for the current financial year and maintains its operating profit target (non-IFRS) around 400 million euros, a figure comparable to that of 2021-2022.
This significant loss for the 2022-2023 financial year follows a slight profit of 79 million made the previous year. It is mainly explained by the postponement of several major releases, including the highly anticipated game "Mirage", a new installment in the successful franchise "Assassin's Creed", as well as the game "Avatar: Frontiers of Pandora", initially scheduled for release. 2022. These games will finally be counted in the 2023-2024 fiscal year, according to Ubisoft.
To deal with these difficulties, Ubisoft has implemented a cost reduction plan of more than 200 million euros. The group recorded an 18,3% drop in its “net bookings” (sales excluding deferred revenue) for the 2022-2023 financial year, reaching 1,74 billion euros. Sales were particularly impacted in the fourth quarter of this financial year, with a 56% drop in turnover, which stood at 310,7 million euros. Over the full year, turnover decreased by 14,6%, reaching 1,81 billion euros. However, thanks to the releases planned for this year, Ubisoft expects strong growth in its "net bookings" for the 2023-2024 financial year.
The group also confirms a reduction in the workforce and the disposal of assets. In recent months, Ubisoft has closed five of its offices in Europe, reducing its workforce to less than 20 jobs, compared to 000 at the end of September. These adjustments were mainly made by the non-replacement of voluntary departures, particularly within the customer relations departments.
Yves Guillemot, CEO of Ubisoft, said: “Although the past year was difficult for the industry and for Ubisoft, it was a pivotal year for the group. We have reinforced our strategic focus on the most promising opportunities, launched a major cost reduction plan and given additional time for the development of our solid content pipeline”. These comments were reported in an official press release.
Ubisoft plans to develop its free-to-play and mobile games for the 2023-2024 financial year, benefiting in particular from a mobile license agreement signed in July for one of its major brands, as well as a partnership with Netflix. Upcoming releases announced include 'Tom Clancy's Rainbow Six Mobile', 'Tom Clancy's The Division Resurgence', 'Skull and Bones', 'The Crew Motorfest' and 'XDefiant'.
The 2022-2023 fiscal year confirmed the success of the Assassin's Creed franchise, with a record number of active users. "Assassin's Creed Valhalla" now has 44% more players compared to "Assassin's Creed Origins" and 19% more players compared to "Assassin's Creed Odyssey" over one year, rejoices Ubisoft.