Ubisoft shares plummet as FY deals 'another cold shock'

Ubisoft Entertainment SA

15/05/2025 08:16

** Game maker Ubisoft UBIP.PA shares droop about 20% after it guided for negative FY26 FCF, while expecting around breakeven non-IFRS oper income

** Ubisoft also expects net bookings to be flat y/y after they fell by 20.5% to 1.85 billion euros ($2.08 billion) in FY25, a touch below estimates of 1.89 billion euros cited by a trader

** "Another year of cash burn", Barclays says, pointing to oper profit and FCF outlook "well below" with "no big launch surprise to help out"

** Barclays points to "strong hopes" for years beyond, as Ubisoft guides for positive FCF for FY27, but "investors will believe in FCF when it is in front of them"

** TP ICAP Midcap says the print is "another cold shock" and cuts its rating to "hold" from "buy"

** Stock is heading for its biggest single-day drop in about 11-1/2 years, if losses persist

($1 = 0.8915 euros)

 (Reporting by Piotr Lipinski)

 ((piotr.lipinski@tr.com))