Ubisoft Entertainment (OTC:UBSFF, EPA:UBI) moved higher on the OTC Market after the Paris headquartered games developer delivered a third quarter trading update showing net bookings of €726.9 million, in line with its previously downgraded guidance.
Last month the Assassins Creed maker said full-year bookings would be 10% lower than it previously thought. It was amongst a number of profit warnings from the games industry after a softer Christmas showing across the sector.
Like at other major studios, the Ubisoft release schedule was light of AAA releases through the second half of 2022, nevertheless, the developer’s sales update today highlighted a robust engagement with gamers for its top IP titles.
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Assassin’s Creed saw a 30% rise in active players during the first nine months, it said, whilst online multiplayer shooter Tom Clancy Rainbow Six Siege marked a 30% increase in daily average revenue per user (DARPU).
Ubisoft is meanwhile driving a more active release schedule for the 2023/24 period including the slated Assassin’s Creed Mirage title, two additional Tom Clancy games and an Avatar IP title, called “Frontiers of Pandora”.
“Fuelling our expectations for strong revenue growth, next fiscal year will see the release of a meaningful line-up,” chief financial officer Frédérick Duguet said in a statement.
The company's chief executive Yves Guillemot added: “We are committed to boosting our efficiency and execution through a more agile organization adapted to new market conditions, with a strong focus on initiatives to enhance predictability across our productions and through our cost-reduction efforts.”
“While the macro environment impacted the video game market and our 3Q results, our established franchises and Live games have performed solidly. In an intensely competitive environment for shooter games, Rainbow Six Siege has performed remarkably well.”
Guillemot said this momentum, seven years after the game’s release, was promising as the company looks to launch Rainbow Six Mobile next fiscal year.
“The Assassin’s Creed franchise reached new player engagement records over the past quarter, and we are excited to bring Assassin’s Creed Mirage to players in 2023-24,” he said.
Ubisoft confirmed its full-year guidance anticipating a 10% decline in net bookings, with an operating loss (non-IFRS) of €500 million Looking to the next year, 2023/24, is anticipating strong top-line growth with a turnaround targeting €400 million of net income.
On the OTC, Ubisoft ADRs gained 1.19% to US$4.26 after the Paris listed equity line closed 0.76% lower at €19.68.