Ubisoft explores ‘strategic options’ as it reports lackluster September quarter results

by | Oct 30, 2024 | Technology

Yves Guillemot, CEO of Ubisoft, said the French video game publisher is exploring its strategic options as it reported lackluster results for the first half of the year.

For the second fiscal quarter, Ubisoft report its net bookings were €352.3 million ($382 million), in line with revised guidance but lower than previous expectations. The company said lower-than-expected results for Star Wars: Outlaws were to blame. In the first half, net bookings were €642.3 million ($697 million), down 22% from a year ago. The net loss was $1.94 a diluted share.

During the past year, Ubisoft reduced its overall employment from 19,410 to 18,666, reducing staff by 744 positions. As for the options, Ubisoft didn’t say but it is reportedly exploring plans to take the company private. The company’s recent struggles are emblematic of the tough time the game industry has seen as demand has changed in the wake of the pandemic. Ubisoft also needs to execute on delivering great content for gamers even as it tries to rein in its costs.

In a statement, Guillemot said, “Despite recent setbacks, we are continuing to deeply transform Ubisoft in order to restore the level of creativity and innovation that built Ubisoft’s success while delivering stronger execution and predictability. Even if our first-half performance fell short of our initial expectations, the double-digit growth of our back catalog excluding partnerships reaffirms the quality, uniqueness and value embedded in our brand portfolio and the strength of our live services. This highlights our potential to deliver more recurring revenue, sustainable growth, and long-term value for our stakeholders.”

In addition to weaker Star Wars results, Guillemot said

He said th …

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