French videogame publisher Ubisoft has warned of another year of losses and lower sales after a record annual operating loss, deepening pressure on the company as it restructures.
The company reported an International Financial Reporting Standards operating loss of €1.3 billion for the year to March 2026, which chief financial officer Frederic Duguet said on a press call was a record.
Net bookings fell 17.4% to €1.53 billion.
Ubisoft said sales in 2026-27 would fall by about 8% to 9%, with a high single-digit operating loss margin and cash burn of as much as €500m.
It said it expected to return to profit and positive free cash flow in 2027-28 on a stronger release slate and growth in live-service, online multiplayer games meant to keep players spending overtime like Riot Games "League of Legends".
Ubisoft has been under pressure following weak game launches, delays and a January restructuring that pushed its shares lower. The company said it had enough cash for near-term debt repayments and was in talks with lenders to refinance upcoming maturities.
Ubisoft also announced a management addition tied to its biggest franchises.
Nicolo Laurent, the former chief executive of Tencent-owned Riot Games, will join Vantage Studios, a Tencent-Ubisoft venture handling Ubisoft's largest brands, as a special adviser.
Ubisoft also said first-quarter net bookings would be about €250m, ahead of the release of "Assassin's Creed Black Flag Resynced," a remake of its 2013 Caribbean-set hit.
The publisher cut about 1,200 jobs over the past year, leaving it with about 16,600 staff, and reduced fixed costs by €118m to €1.435 billion in 2025-26. It is targeting a further cut to €1.25 billion by March 2028 as it tries to stabilise cash flow.
