Post by : Bianca
Haleem
Ubisoft, the renowned French video game publisher, announced quarterly net bookings that outstripped expectations, demonstrating its resilience even in the face of a recent accounting delay and a provisional breach of critical debt covenants.
The firm postponed its results, which were due on November 13, owing to a change in how revenue is recognized as mandated by a newly appointed audit committee. This updated method records revenue from usage-based partnerships progressively rather than upfront, subsequently affecting reported debt metrics.
Upon resuming trading on Friday, shares initially fell close to 6%, only to rally back to a 10% increase, showcasing strong investor trust in Ubisoft's operational capabilities.
The accounting revisions elevated Ubisoft’s net debt-to-core earnings ratio to 1.81, surpassing the 1.5 threshold stipulated in certain financing contracts. The company quickly acted to rectify the breach, planning an early repayment of roughly €286 million in loans, funded by Tencent’s €1 billion investment in Vantage Studios, responsible for its leading franchises.
Undeterred by these obstacles, Ubisoft reported net bookings for Q2 of €490.8 million, reflecting a robust 39% growth compared to the previous period and exceeding its forecast of about €450 million. This increase was driven by strong sales of its game portfolio and contributions from television adaptations of its franchises.
Looking forward, Ubisoft is maintaining its guidance for the full year, expecting consistent net bookings and operating income approaching breakeven. For Q3, projected bookings are around €305 million. The company will also continue developing its “Creative Houses” strategy, with more details anticipated in January 2026.
As of September, Ubisoft's workforce comprised 17,097, a decrease of about 1,500 from the previous year, contributing to nearly €70 million of the targeted €100 million in cost reductions for 2025.
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