Ubisoft’s revenue dropped 9.8% according to a latest report published.
The company’s posts dropped earnings despite “better-than-expected performance” from the key franchise. Ubisoft has released its financials for the first quarter of its fiscal year, reporting a year-over-year decline in revenue.
The airline posted revenue of 318.2 million euros, down 9.8% from 353 million euros in the same period last year. The company’s forecast target is around €280 million, but down 10% from the €326 reported for Q1 2021.
Ubisoft CFO Frédérick Duguet attributed the quarter’s success to “better-than-expected performance” from top franchises Assassin’s Creed and Rainbow Six Siege. The company expects second-quarter net bookings to be at a slightly lower 270 million euros, but says growth for the full year will be significantly higher, with a target of around 400 million euros.
Looking at Ubisoft’s release list for the next 12 months, the company is expected to launch two big games in Q4 2022, Mario + Rabbids: Spark of Hope on October 20 and Skull and Bones on October 20. November 8, the game has been delayed several times since its reveal in 2017.
In Q2, the company also aims to launch Anno 1800: Empire of the Skies and Rocksmith+ on PC, as well as new seasons of the live service titles For Honor, Riders Republic, Roller Champions, The Crew 2 and Rainbow Six Siege.
Ubisoft also recently unveiled The Division Resurgence for mobile devices with the aim of expanding the series’ audience and noting that it will reveal “the future of the Assassin’s Creed franchise” in September.
The company also announced that Avatar: Frontiers of Pandora has also been delayed to fiscal year 2023; Duguet added that “this additional development time is a reflection of the current ongoing restrictions on production across the industry”.
In recent months, Ubisoft has faced delays and demand declines to pre-pandemic sales levels. The company also faces competition from blockbuster titles and free-to-play games.
Ubisoft, whose titles include Prince of Persia and The Division, said it continues to expect significant top-line revenue growth year-over-year, while falling above 10%.
“We revised our top growth guidance to above 20%, now above 10%. That reflects the impact of game delays, mainly on Avatar,” co-founder and CEO Yves Guillemot said on a call with analysts.
The makers of Assassin’s Creed have postponed the release of Avatar: Frontiers of Pandora and a smaller, unannounced premium game to 2023-2024. Ubisoft announced a “high value” mobile licensing deal for one of its major brands and said it is pursuing cost optimization, as revealed in an analyst on the cancellation of games like Splinter Cell VR and Ghost Recon Frontline.
The Paris-listed company reported a 10% drop in pre-orders to €293.3 million for the three months ended June, compared with around €280 million.