Ubisoft Misses Q1 Sales, Shifts to Creative Houses Model

Ubisoft announced a major reorganization into autonomous "Creative Houses" focused on specific gaming genres to improve quality, focus, and accountability, with the first unit managing flagship franchises like Assassin’s Creed and Rainbow Six in partnership with Tencent. Despite reporting first-quarter net bookings of 281.6 million euros, below the expected 310 million euros due to weaker Rainbow Six Siege performance and delayed partnerships, Ubisoft maintained its full-year guidance and expects second-quarter net bookings around 450 million euros driven by strategic B2B partnerships and TV series revenues. CEO Yves Guillemot highlighted the success of Assassin’s Creed Shadows with over 5 million unique players and noted that technical pricing issues affecting Rainbow Six Siege have been addressed. Ubisoft confirmed stable net bookings year-on-year, approximately break-even non-IFRS operating income, and negative free cash flow, expecting to maintain net debt close to zero following the Tencent transaction. Upcoming releases include Anno 117: Pax Romana, a Prince of Persia remake, Rainbow Six Mobile, and The Division Resurgence, with additional titles to be announced later. The company aims to complete the rollout of the Creative Houses model by the end of 2025 to drive future creative and business growth.