Shares of Ubisoft (UBI.FR), French video game company, are slumping almost 20% in today's trading. Poor performance of the company's stock can be blamed on Ubisoft cutting booking targets for the third quarter of fiscal 2022/23 (October 2022 - December 2022). Company noted that its recent launches have not performed as well as expected amid a more challenging environment and that its next big titles, which are expected to be earnings drivers, are yet to be released. Ubisoft also highlighted that sales during the Christmas holiday period were slower than expected.
Given the deteriorating situation, Ubisoft decided to review its business prospects and focus on the most promising titles. As such, the company said it has decided to cancel 3 projects that were unannounced yet, following cancellations of 4 other projects back in July 2022. Ubisoft also announced another delay to the Skull and Bones title, which is now expected to be released in early 2023/2024 fiscal year (April 2023 - March 2024).
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Open account Try demo Download mobile app Download mobile appUbisoft has revised its net bookings target for fiscal-Q3 2022/2023 and now expects them at approximately €725 million, down from €830 million. A massive revision was also made to full-year targets with net bookings now expected to be down 10% while the previous forecast called for a 10% growth.
Shares of Ubisoft (UBI.FR) plunged almost 20% today and drop to 7-year low after company cut its net bookings targets for fiscal Q3 and full fiscal-2022/2023. The €19.00 support area was tested earlier today but bulls managed to fend off the bears, at least for now. Source: xStation5
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