(Bloomberg) — Ubisoft Entertainment SA reported first-quarter bookings in line with analysts expectations but also announced it would postpone its “Avatar” game, as the French video game studio works to overcome a post-pandemic production crunch.
The publisher behind the “Assassin’s Creed” franchise is “adapting” its organization “to current economic uncertainties through cost optimization,” Chief Executive Officer Yves Guillemot said in a statement Thursday. “We continue to work on the richest pipeline in the company’s history.”
The game “Avatar: Frontiers of Pandora,” based on the movie franchise in partnership with Disney, was expected to be released this year but is now delayed until at least 2023.
Still, Ubisoft said it will release “Mario + Rabbids: Sparks of Hope,” developed in partnership with Nintendo, on Oct. 20. “Skull and Bones,” which has been hit by a number of development delays since its announcement in 2017, is also set for release Nov. 8.
Key Insights
- Ubisoft confirmed its operating income forecast for fiscal 2023 at 400 million euros ($408 million).
- The group published first-quarter net bookings of 293.3 million euros, in line with the 292.7 million-euro average estimate from analysts surveyed by Bloomberg.
- The French company’s stock has been battered as it coped with concerns over delayed launches caused by the pandemic.
- The delay of the “Avatar” game is due to “more difficult working conditions” in the industry as “people can’t come to the office as often,” Guillemot said during a call with analysts after the results were released. In the statement, the CEO said Ubisoft is working to “design the most efficient working conditions.”
- Ubisoft is set to stabilize its headcount by the end of the fiscal year, its Chief Financial Officer Frederick Duguet said during the call. A spokesperson for the company said the company would have 21,000 employees by the end of the year.
- The company secured a “new high-value licensing partnership on mobile” for one of its AAA brands, according to the statement.
Market Context
- Ubisoft’s shares have fallen about 3.3% for the year to date in Paris.
- Investors are watching Ubisoft’s performance as game studios are seen as potential takeover targets for big tech companies and private equity firms.
- The company has attracted preliminary takeover interest from buyout funds including Blackstone Inc. and KKR & Co., Bloomberg reported in April. Ubisoft said at the time that it would consider any offer, but the company has the means to remain independent.
Get More
- Ubisoft Drops as Exane Cuts to Neutral on 2023 Caution
- Assassin’s Creed Publisher Ubisoft Said to Draw Buyout Interest
- Ubisoft Plans New Assassin’s Creed Game to Help Fill Schedule
(Updates with context, CEO, CFO quotes from first paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
