Ubisoft Stock Dips as Earnings Outlook Falls Short
Ubisoft Stock Dips as Earnin...
Subscribe to Newsletter

Ubisoft Stock Dips as Earnings Outlook Falls Short

16 May 2024
2445
1 min.
2
Ubisoft Stock Dips as Earnings Outlook Falls Short

Ubisoft's Bumpy Start

Ubisoft Entertainment's shares plummeted following the release of disappointing guidance for the current quarter, signaling a sluggish start to the new fiscal year despite a strong finish in fiscal 2024.

The stock price of Ubisoft dropped by 15% to EUR19.86 at 0830 GMT, marking a 22% decline over the past year.

For the fiscal first quarter ending in June, the French videogame company anticipates net bookings of approximately 275 million euros ($299.3 million). This projection fell short of analyst expectations, with Citi analysts expressing disappointment as the Visible Alpha consensus was higher at EUR361 million.

The subdued forecast contrasts sharply with Ubisoft's robust performance in the closing quarter of fiscal 2024, characterized by significant growth in franchises like Assassin’s Creed and Rainbow Six. During this period, net bookings soared to EUR872.7 million, more than doubling from the previous year and surpassing the Visible Alpha consensus of EUR782.4 million.

Ubisoft announced the discontinuation of development on “The Division Heartland” to prioritize larger projects like “XDefiant” and “Rainbow Six” for the upcoming fiscal year, which will also introduce titles such as “Assassin’s Creed Shadows” and “Star Wars Outlaws”, alongside “Rainbow Six Mobile”, “The Division Resurgence”, and “XDefiant”.

Looking ahead, Ubisoft anticipates solid net bookings growth and a slight increase in non-IFRS operating profit for the new fiscal year. However, UBS analysts noted that the projected operating profit growth falls somewhat below the Visible Alpha consensus of 18%.

Companies2 in the news

Section:
Rating companies
Instagram
17 Mention
Netflix
17 Mention
X (Twitter)
11 Mention
Amazon
8 Mention
TikTok
8 Mention
Tesla
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8164311013
Died this year
49645307
Born this year
122136242