By Leo Marchandon (Reuters) -French video game group Ubisoft reported second-quarter net bookings that exceeded its guidance on Friday, and said the 1-billion-euro ($1.2 billion) investment from China’s Tencent would enable it to reduce its debt pile. Quarterly bookings reached 490.8 million euros, up 39% from a year earlier and above Ubisoft’s guidance of around […]
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Ubisoft’s quarterly bookings beat guidance as Tencent deal helps cut debt
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By Leo Marchandon
(Reuters) -French video game group Ubisoft reported second-quarter net bookings that exceeded its guidance on Friday, and said the 1-billion-euro ($1.2 billion) investment from China’s Tencent would enable it to reduce its debt pile.
Quarterly bookings reached 490.8 million euros, up 39% from a year earlier and above Ubisoft’s guidance of around 450 million, driven by stronger-than-expected performance across its catalogue and a meaningful contribution from TV adaptations of its games.
Proceeds from Tencent’s investment in Vantage Studios, a subsidiary managing Ubisoft’s three flagship franchises, will enable early repayment of around 286 million euros in outstanding loans, the company said.
Its net debt stood at 1.15 billion euros at the end of September, with 210 million due in December.
The French group has asked Euronext to resume trading of its shares and bonds at 10 a.m. local time (0900 GMT) on Friday, following a suspension that began November 14 when it delayed its half-year results publication.
Finance chief Frederick Duguet said in a press call the delay was due to a newly appointed panel of auditors requiring a restatement of fiscal 2025 accounts related to revenue recognition of partnership deals.
The restatement resulted in Ubisoft breaching its leverage covenant ratio under certain financing agreements as of September 30. It said this was being addressed through the early repayment of the concerned debt instruments using proceeds from the Tencent deal.
The company confirmed its full-year outlook, expecting stable net bookings year-on-year and an operating income around breakeven. It forecast third-quarter net bookings of around 305 million euros.
CEO Yves Guillemot said full details of Ubisoft’s new “Creative Houses” operating model would be unveiled in January 2026.
Ubisoft’s global headcount stood at 17,097 at the end of September, down by about 1,500 over 12 months, as it pursues at least 100 million euros in cost savings this year.
Duguet said the company had achieved close to 70 million euros of those cost reductions in the first half of the year.
($1 = 0.8663 euros)
(Reporting by Leo Marchandon, editing by Milla Nissi-Prussak)