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Ubisoft released its earnings report for the first half of fiscal year 2025-2026 after a delay that sparked a lot of speculation over the past few days, as some believed that the reason for the delay was due to a potential acquisition, but the new report dispels these rumors completely, explaining that the delay was the result of an accounting issue related to the method of calculating revenue.
The report revealed that Tencent’s €1.16 billion investment in Vantage has met all preconditions and the deal is expected to close in the coming days. The deal will help the group reduce debt, accelerate the development of the studio’s titles, and boost liquidity by raising €668 million and an additional €1.16 billion, enabling the company to early repay loans worth €286 million.
Ubisoft explained that it has revised its analysis in relation to IFRS 15 Revenue Recognition related to a prior partnership during the 2024-2025 fiscal year, resulting in the restatement of that year’s accounts under IAS 8.
This accounting adjustment resulted in the non-recognition of revenue from a partnership signed in the second quarter of FY2025-26, resulting in the company not meeting the leverage ratio agreed with certain financiers until September 30, 2025. However, this imbalance will be resolved through early repayment of the said loans with no impact on the company’s non-IFRS indicators.
The company’s CFO Frederick Duguet had sent letters to employees confirming the suspension of trading of Ubisoft shares on Euronext to reduce speculation and unnecessary volatility in the market, and with the publication of the earnings report, trading on the company’s shares is expected to resume soon.
In addition, the report noted that gamers are enjoying fewer games, making it more difficult for new titles to emerge, and producer Mark Robin confirmed that Splinter Cell has not been canceled in favor of XDefiant development, denying rumors that have been circulating.
This report provides a clear view of the company’s financial and strategic situation and sends a message of reassurance to investors after a period of uncertainty.
