COMMUNICATIONS: Ubisoft Guidance Sees Activists Push For Sale; Credit Negative
Unrated EUR 27s streaming 4.3pts lower at EUR 79.88
The fact that FY guidance had been left in place at Q1 results was noted as reassuring while today’s cut is quite a bit larger than consensus so disappointment is understandable when considered along with the fact that Assassin’s creed will launch after the Christmas rush and that the much-anticipated Star Wars game is underperforming.
• FY25 net bookings target updated to EUR ~1.95bn (vs. BBG consensus of EUR 2.2bn), with break-even non-IFRS operating income and FCF (vs. BBG consensus of EUR 0.15bn and EUR 0.05bn respectively).
• Q225 net bookings guidance set at EUR 350-370mn (vs. BBG consensus of EUR 0.5bn), reflecting delays in Assassin's Creed Shadows (to Feb 14) and lower-than-expected sales for Star Wars Outlaws.
• Also noting Reuters now reporting on a letter that AJ Investments (<1% stake) that it is pushing for a sale of Ubisoft, claiming support from 10% of shareholders and just weeks after calling for a CEO change. No details on specific shareholders though AJ Investments is reportedly in talks with PE firms.
• July Q1 results bullet; https://marketnews.com/communications-ubisoft-q125-results-mixed-signals-as-eur-27s-move-wider