Ubisoft shares tank after the firm warns on profits and delays three big games
- Ubisoft on Thursday announced that it was revising downward its fiscal year profit targets for 2019-20.
- The firm is delaying the release of "Watch Dogs Legion," "Rainbow Six Quarantine" and "Gods & Monsters."
- It also cut its revenue expectations for "Ghost Recon Breakpoint" and, to a lesser extent, "The Division 2."
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."