Uncategorized
Ubisoft stock plummets over 20% on game delays and slashed guidance
The Ubisoft display at the Electronic Entertainment Expo (E3) in Los Angeles, California.ROBYN BECK | AFP | Getty ImagesShares of Ubisoft plunged on Friday, while trading was briefly suspended, after the French game publisher issued a profit warning and delayed the release of some of its triple-A titles.Ubisoft on Thursday announced that it was revising…
The Ubisoft display at the Electronic Entertainment Expo (E3) in Los Angeles, California.
ROBYN BECK | AFP | Getty Images
Shares of Ubisoft plunged on Friday, while trading was briefly suspended, after the French game publisher issued a profit warning and delayed the release of some of its triple-A titles.
Ubisoft on Thursday announced that it was revising downward its fiscal year profit targets for 2019-20, with the gaming giant now expecting operating profits of between 20 million euros ($22.2 million) and 50 million euros, sharply down from a previous target of 480 million euros.
It also slashed revenue guidance, saying it now expects net bookings of roughly 1,450 million euros for the year, compared with a previous forecast of 2,185 million euros.
Ubisoft's stock price fell over 20% in morning trade, hitting its lowest level since April 2017.
The company has pushed the release dates of three blockbuster games, “Watch Dogs Legion,” “Rainbow Six Quarantine” and “Gods & Monsters” back to the fiscal year 2020-21, saying they require more development time.
The firm added it was making a “sharp downward revision” to its revenue expectations for recently release game “Ghost Recon Breakpoint” and, to a lesser extent, “The Division 2.”
Ubisoft CEO Yves Guillemot also highlighted a “disappointing” critical reception for “Ghost Recon Breakpoint” in the trading update, adding: “We will continue to support the game and listen to the community in order to deliver the necessary improvements.”
Subscribe to Centenunlimited news
We hate SPAM and promise to keep your email address safe
