Regarding the lack of warning last weekPostponing the release of the semi-annual financial reportAfter confirming the trading halt, Ubisoft finally released its results for the first half of fiscal year 2025-26 earlier.Performance resultsThis further confirms that the delayed release of the financial report is related to "accounting issues" surrounding Tencent's impending transaction. Following the release of the financial report, Ubisoft has also applied to Euronext to resume trading of its shares.
Revenue recognition adjustments that led to a breach of debt agreements; Tencent's funding came as a timely lifeline.
According to Ubisoft, the company was forced to restate its accounts for fiscal year FY2024-25, primarily due to a revenue recognition issue related to a partner sale during that period.
Ubisoft stated that, based on its current stance, a partnership signed in the second quarter of FY2025-26 was not recognized in IFRS 15 revenue. This directly resulted in the company failing to comply with the leverage covenant ratio requirements of certain existing financing agreements as of September 30, 2025.
However, Ubisoft stated that the deal with Tencent is expected to be completed "within the next few days." This investment of up to €11.6 billion (approximately US$13.6 billion) is expected to help the company repay its outstanding debt.
Tencent accelerates Vantage Studios' expansion, holding a 25% stake.
Following the completion of the transaction, the collaboration between the two parties will further "accelerate" the development of the new subsidiary, Vantage Studios, with Tencent holding a 25% stake in the studio.
Vantage Studios will be responsible for Ubisoft’s three most important IP assets: Assassin's Creed, Far Cry, and Rainbow Six.
Financial Performance: Net bookings increased by 39%, Assassin's Creed: Shadow will be released on Nintendo Switch 2.
In terms of performance, Ubisoft reported net bookings of €4.91 million (approximately US$5.64 million) for the quarter, a 39% increase compared to the same period last year.
The official announcement specifically mentioned that Assassin's Creed Shadows performed better than expected this season, possibly thanks to the "New Game+" mode launched this summer. Furthermore, Ubisoft confirmed that the game will be released next month.Ported to Nintendo Switch 2 platform.
