This article first appeared on GuruFocus.
Release Date: November 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Ubisoft Entertainment (UBSFF) delivered net bookings above guidance, driven by stronger than expected partnerships.
The Assassin’s Creed franchise exceeded expectations, confirming its positive momentum and ability to engage players.
The Division 2 continued to perform strongly, benefiting from the momentum of the Battle for Brooklyn expansion.
ADVERTISEMENTThe strategic transaction with Tencent is set to bring in 1.16 billion euros, significantly strengthening Ubisoft’s financial position.
Ubisoft is making significant progress in applying generative AI to enhance player experience and game production.
The financial results were delayed due to a restatement required by a new panel of auditors.
Rainbow Six Siege faced challenges with a temporary surge in cheating, impacting player activity and spending.
Ubisoft’s free cash flow was negative, reflecting the absence of new releases this semester.
The company had to address a breach of covenant due to restatement issues, impacting its leverage governance ratio.
Net debt increased slightly, and cash equivalents decreased, driven by debt reimbursement.
Q: Are there any risks of cross-default clauses being enforced due to the breach of covenant, and how do you plan to achieve a strong fourth quarter given the previous year’s performance? A: We are addressing the covenant breach by settling repayments of government-based debt and canceling the revolving credit facility. We expect no impact on the overall debt structure and anticipate a comfortable cash position by March. For Q4, we expect contributions from new releases like Prince of Persia and Rainbow Six Mobile, alongside partnerships and follow-on sales from previous releases. (Unidentified_2)
Q: Have auditors reviewed all partnership deals to ensure no further restatements are needed, and can you explain the difference in restatements for FY25 and the last 12 months? A: There is no risk on prior year financial accounts as all partnerships have converted into cash. The FY25 restatement relates to a specific partnership, and differences in restatements are due to the timing of revenue recognition. We have increased visibility on B2B partnerships for Q4. (Unidentified_2)
Q: Do you have full visibility on partnership deals landing in Q4? A: Yes, we have a good pipeline of partnerships that we are working on, providing us with confidence in their contribution to Q4 results. (Unidentified_2)
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‘ Some details of this article were extracted from the following source finance.yahoo.com ’
