Ubisoft revises financial expectations for 2019
Targets revised downwards as this year's games underperform
Ubisoft has announced that it is updating its financial targets and games release schedule for fiscal 2019-20, and communicating its initial targets for fiscal 2020-21.
The Company has revised downwards its targets for fiscal 2019-20 and now expects net bookings of approximately €1,450 million and non-IFRS operating income of between €20 million and €50 million (compared with the previous targets of net bookings of around €2,185 million and nonIFRS operating income of around €480 million).
These adjustments reflect a sharp downward revision in the revenues expected from Ghost Recon Breakpoint and, to a lesser extent, The Division 2. It's also due to the decision to delay multiple Q1/Q2 2020 games to allow for more development time.
Consequently, Ubisoft is now targeting net bookings of approximately €2,600 million and nonIFRS operating income of approximately €600 million for 2020-21.
Yves Guillemot, Co-Founder and Chief Executive Officer, commented: "Over the past few years, we have delivered many high-quality titles, built a portfolio of diversified franchises and successfully conducted the digital transformation of our business. However, we have not capitalized on the potential of our latest two AAA releases. For Ghost Recon Breakpoint, while the game’s quality appeared on track – based on E3, Gamescom, previews and our latest internal playtests –, critical reception and sales during the game’s first weeks were very disappointing."
"Going forward, we are ideally positioned to benefit from the industry’s strong expansion and constant evolution," he added.