Core Insights - Ubisoft reported strong first-half earnings for fiscal year 2025-26, with net bookings reaching €772.4 million, a 20.3% increase year-on-year, driven by robust digital sales and back-catalog performance [2][41] - The company confirmed its financial targets for FY2025-26, expecting stable net bookings and approximately break-even non-IFRS operating income [48] - The strategic transaction with Tencent is set to close soon, which will provide €1.16 billion to help deleverage the company and support its transformation efforts [8][9] Financial Performance - Net bookings for Q2 2025-26 were €490.8 million, exceeding guidance and up 39% year-on-year, attributed to strong partnerships and a solid back-catalog [3][41] - Digital net bookings accounted for €685.8 million, representing a 30.2% increase and 88.8% of total net bookings [2] - Non-IFRS operating income for the first half was €27.1 million, a significant improvement from a loss of €252.1 million in the same period last year [42] Strategic Developments - The Tencent transaction will enable early repayment of loans totaling approximately €286 million, enhancing financial flexibility [5][28] - Ubisoft is progressing with its transformation into a new operating model centered around Creative Houses, aimed at fostering autonomy and efficiency [12][26] - The company is on track to achieve at least €100 million in fixed cost savings by FY2026-27 through targeted restructuring and disciplined hiring [29][30] Product Lineup and Market Position - Upcoming titles include Anno 117: Pax Romana™, Assassin's Creed Mirage updates, and Avatar: Frontiers of Pandora expansion, with significant releases planned for Q4 [6][49] - The Assassin's Creed franchise continues to perform strongly, with recent updates and expansions driving player engagement [15][10] - Tom Clancy's Rainbow Six Siege is adapting to a new seasonal approach to enhance player experience and address recent challenges [16][17] Market Dynamics - Ubisoft's portfolio showed contrasting dynamics, with strong performances in franchises like Assassin's Creed and The Division 2, while facing challenges in Rainbow Six Siege due to a competitive FPS environment [10][19] - The company reported 34 million monthly active users and 88 million unique users across consoles and PC, indicating a slight decline when excluding XDefiant [14]

Core Insights - Ubisoft reported first-quarter net bookings of €281.6 million for fiscal year 2025-26, which is a decrease of 2.9% compared to €290.0 million in the same period last year, falling short of expectations [3][23] - The company is undergoing a transformation by reorganizing into Creative Houses, aimed at enhancing quality, focus, autonomy, and accountability while fostering closer connections with players [4][7][16] - The closing of the transaction with Tencent is progressing well and is expected to be completed by the end of 2025, subject to regulatory approval [4][18] Financial Performance - IFRS 15 sales for Q1 2025-26 were €310.8 million, down 3.9% from €323.5 million in Q1 2024-25 [22] - Digital net bookings reached €250.2 million, a decrease of 2.7%, while Player Recurring Investment (PRI) net bookings were €151.8 million, down 4.3% [1][22] - Back-catalog net bookings increased by 4.4% year-on-year to €260.4 million, representing 92.5% of total net bookings [1] Game Performance - Assassin's Creed Shadows met expectations with over 5 million unique players since launch, while Rainbow Six Siege faced temporary disruptions due to technical pricing issues [6][9] - The Rainbow Six Siege X update received positive feedback, with significant player engagement growth despite earlier pricing issues [11][12] - Tom Clancy's The Division 2 had a strong start to the fiscal year, driven by new content and its inclusion in Game Pass [14] Strategic Outlook - For Q2 2025-26, net bookings are expected to reach around €450 million, driven by strategic partnerships and contributions from Rainbow Six Siege X [24] - The company confirmed its full-year targets, expecting stable net bookings year-on-year and approximately break-even non-IFRS operating income [25] - Upcoming titles for FY26 include Anno 117: Pax Romana™, Prince of Persia™: The Sands of Time remake, and Rainbow Six Mobile [26]