Ubisoft Earnings: Strong Licensing Revenue Obscures Core Game Performance

Ubisoft hit its aggressive bookings target for fiscal 2024 but provided little detail about the size of one-time licensing revenue during the fiscal fourth quarter, including around the game streaming rights acquired from Activision. The recognition of high-margin licensing revenue also contributed to Ubisoft hitting its profitability targets. We are disappointed that we don’t have a clearer view into how the firm’s core titles are performing, but we are maintaining our EUR 33 fair value estimate.