(Boursier.com) — Ubisoft climbed by more than 18% this Friday to 23.55 euros, while the group presented a turnover of 606.4 ME for the third quarter of its 2023-2024 financial year, down 21.5% (19 .5% at constant exchange rates) over one year. IFRS 15 turnover for the first nine months 2023-2024 amounts to €1,442.5 million, down 4.1% (1.9% at constant exchange rates). Net bookings for the third quarter of 2023-2024 amounted to €626.2 million, slightly above the Group’s objective of around €610 million and down 13.8% (11.7% at constant exchange rates). . Net bookings for the first 9 months of 2023-24 amounted to €1,448.6 million, up 1.6% (3.9% at constant exchange rates).
“Ubisoft recorded a strong third quarter, with net bookings slightly above our expectations. This quarter was marked by positive momentum and marks the start of our turnaround towards creating and consistently delivering high-quality, persistent games. Our performance is driven by the launches of Assassin’s Creed Mirage and Avatar: Frontiers of Pandora, but also by the continuation of the strong trajectory of The Crew Motorfest, as well as the robust performance of our back-catalogue. driven by the success of Rainbow Six Siege, demonstrating strong growth in net bookings and playing time, as well as the Assassin’s Creed franchise overall which benefited from the launch of Assassin’s Creed Mirage”, commented the CEO in particular Yves Guillemot.
Objectives confirmed
The group confirmed its annual objectives of strong growth in net bookings and non-IFRS operating profit of around €400 million. Net bookings for the fourth quarter are expected to rise sharply, which will lead to a record annual net bookings. This quarter includes a line-up with Skull and Bones and Prince of Persia: The Lost Crown, for premium games, a limited contribution from XDefiant on the free-to-play side, sales of games launched in previous quarters, a back catalog solid based on a very dense program of Live services and significant partnerships, including the non-exclusive licensing of streaming rights for console and PC games from Activision Blizzard.
The extent of the ‘line-up’ for the 2024-2025 financial year will be revealed in May and will include Assassin’s Creed codename Red and Star Wars Outlaws on the premium side and The Division Resurgence and Rainbow Six Mobile on the free-to-play side.
Convinced Brokers
Among the latest broker opinions, Deutsche Bank remains a buy and raises its target on Ubisoft from 35 to 38 euros. Stifel, for its part, maintains the value with an adjusted objective of 27 to 26 euros. “The third quarter results were supported by the “unpredictable” partnerships established in 2023”, estimates Jefferies, which however notes release delays, in particular of the new Star Wars and Skull and Bones games…
“These results, which are better than expected, should help restore positive sentiment towards the stock, particularly as we look ahead to the impressive gaming pipeline for the 2025 financial year,” said Deutsche Bank.
For another major broker in the area, “the results for the third quarter were slightly higher than forecasts and the strong increase in net bookings in the fourth quarter which is looming is reassuring”.
During the quarter ended in December, the group behind the successful “Assassin’s Creed” franchise posted net bookings of €626.2 million, compared to €610 million forecast. The consensus of analysts was rather at 620 ME. Ubisoft also said it expects a sharp increase in net bookings in the fourth quarter, which should make it possible to reach an annual record…
The group reiterated its outlook for the remainder of the fiscal year, which ends at the end of March.