Ubisoft Earnings: Rebuilding Year Ends on Weak Note, but Core Franchises Will Drive Rebound in 2024

Ubisoft posted a weak end to a rebuilding fiscal 2023 as net booking fell over 50% and the full-year non-IFRS operating fell dramatically to a record loss. Management expects fiscal 2024 to be a bounceback year with “strong growth” in net bookings and non-IFRS operating income of EUR 400 million. This growth is projected to be driven by a possibly overstuffed slate that includes a new installment of Assassin’s Creed, Avatar, mobile version of Rainbow Six, Skull and Bones, and four other titles. We remain concerned that Ubisoft may be overstretching its resources to support such a large slate.