Ubisoft shares tumble on revised targets

Investing.com -- Ubisoft shares dropped 4.5% Wednesday after the company revised its financial targets for FY2024-25.

In a press release, Ubisoft announced that it now expects net bookings of around €1.95 billion, along with break-even non-IFRS operating income and free cash flow. In addition, the company is now targeting net bookings for the second quarter FY2024-25 to stand at around €350-370 million. 

This revision comes in response to the delayed release of Assassin's Creed Shadows and a "softer than expected launch" of Star Wars Outlaws.

Assassin's Creed Shadows, originally set for an earlier release, has now been postponed to February 14, 2025, to allow for additional polishing.

Ubisoft emphasized that the decision was driven by a player-centric approach, citing learnings from the Star Wars Outlaws launch.

"The biggest entry in the franchise" aims to deliver a "dual-protagonist adventure" with enhanced gameplay styles, according to the company.

In the meantime, Star Wars Outlaws—despite receiving solid reviews (76 on Metacritic) and strong user scores (3.9/5 on First Party and Epic stores)—has faced underwhelming initial sales, notes the company.

Ubisoft said its development teams are working on updates to improve the player experience in hopes of boosting sales during the holiday season. The game is set to launch on Steam on November 21.

Yves Guillemot, Ubisoft's CEO, acknowledged the company's shortfall, stating, "Our second quarter performance fell short of our expectations, prompting us to address this swiftly and firmly, with an even greater focus on a player-centric, gameplay-first approach and an unwavering commitment to the long-term value of our brands."

"We remain committed to creating games for fans and players that everyone can enjoy," he added.

He also outlined Ubisoft's strategy moving forward, focusing on open-world adventures and GaaS-native experiences to drive long-term growth and free cash flow.

Source: Investing.com