Ubisoft Entertainment S.A. (UBSFY) Quarterly Earnings Preview and Financial Health

• Ubisoft Entertainment S.A., trading as PNK:UBSFY, is set to release its quarterly earnings with an expected EPS of $0.23 and revenue of $429.75 million.
• The company's recent success with Assassin's Creed® Shadows underscores its brand strength and supports its revenue projections.

Ubisoft Entertainment S.A., known as PNK:UBSFY on the PNK exchange, is a prominent player in the video game industry. The company is renowned for its popular franchises like Assassin's Creed®, Rainbow Six®, and Far Cry®. As it prepares to release its quarterly earnings on May 15, 2025, analysts expect an earnings per share of $0.23 and revenue of $429.75 million.

Ubisoft's recent full-year earnings for 2024-25 show a performance that aligns with its targets. The release of Assassin's Creed® Shadows received strong praise, outperforming its predecessor, Assassin's Creed® Odyssey. This highlights the brand's strength, which is crucial as the company aims to meet the projected revenue of $429.75 million for the upcoming quarter.

The company's price-to-sales ratio of 0.66 suggests that the market values its sales at about 66 cents for every dollar of sales. This valuation is supported by net bookings of €1.85 billion, slightly below expectations due to timing issues with partnerships. Ubisoft's enterprise value to sales ratio is 1.32, reflecting its total valuation relative to sales. The enterprise value to operating cash flow ratio of 4.49 indicates that operating cash flow can cover the enterprise value multiple times. The company's free cash flow exceeded targets, reaching €128 million, driven by operating activities that generated €169 million.

The company has a debt-to-equity ratio of 1.38, indicating significant use of debt compared to equity. However, a current ratio of 2.32 suggests good short-term financial health, with more than twice the amount of current assets compared to current liabilities. This financial stability is crucial as Ubisoft continues to attract over 100 million unique active players across its various brands annually.