Ubisoft delayed its financial report due to changes in auditing procedures, affecting its debt covenant ratio. The company appointed a new panel of auditors in July, prompting a reevaluation of revenue recognition policies for a prior-year partnership.
Debt Covenant and Financial Strategy
The new auditors' approach temporarily pushed Ubisoft past a net debt-to-core profit covenant. To normalize this ratio, the company paid 286 million euros to reduce outstanding loans. Ubisoft's financial management reflects its proactive strategy in maintaining fiscal health amid shifting auditor perspectives.
Game Performance Insights
Despite financial reporting delays, Ubisoft's game portfolio showed robust performance. "Assassin's Creed: Shadows" surpassed expectations, reaching 211 million session days year to date. This marks a 35% increase over the two-year average. Meanwhile, "Rainbow Six Siege" experienced a boost in engagement after moving to free access, although a rise in cheating tempered the initial growth.
Future Releases and Strategy
Ubisoft unveiled its upcoming releases, including DLC for "Avatar," "Rainbow Six Mobile," "The Division Resurgence," a remake of "Prince of Persia: The Sands of Time," and an unnamed project. These launch plans signal the company’s continued focus on expanding its gaming portfolio and sustaining player engagement.
