Ubisoft, the developer behind the "Assassin's Creed" series, has reassured investors by indicating it will possess sufficient cash to cover its upcoming debt obligations. This announcement comes as the company undergoes a business restructuring and adjusts its game portfolio.
The company's Paris-listed shares climbed over 10% on Friday, recovering some of this year's losses, though they remain down nearly 30% since January.
The French video game developer stated on Thursday that it anticipates its cash position will be between €1.25 billion and €1.35 billion ($1.48 billion to $1.60 billion) by the end of March.
The company confirmed these funds are fully available to settle its maturing debt, signaling to investors that it has ample immediate liquidity. Ubisoft also mentioned it is exploring options to extend the maturity of its debt.
The Chief Executive Officer stated, "Our financial situation and available cash provide the necessary flexibility to address near-term debt maturities, while we continue to optimize our debt structure."
This cash projection follows the group's recent announcement of a structural adjustment plan, which involved canceling and delaying several games, shuttering some studios, and lowering its financial targets for the 2026 fiscal year. These moves are part of the company's efforts to drive a business transformation after years of game development delays, technical issues, and project cancellations.
Ubisoft experienced a period of strength during pandemic lockdowns, as increased time at home boosted player engagement. However, as restrictions eased and market competition intensified, the company issued multiple profit warnings and began concentrating resources on games with higher potential for major success. Since the end of 2021, its share price has declined by approximately 90%.
Ubisoft reported net bookings of €338 million for the quarter ended December 31, representing a 12% year-over-year increase, which is broadly consistent with preliminary figures disclosed last month.
The company maintained its full-year outlook: net bookings of approximately €1.5 billion for the fiscal year ending in March, and a non-IFRS operating loss of around €1 billion.