(News Bulletin 247) – The video game publisher exceeded expectations for the first quarter of its staggered 2023-2024 financial year. Ubisoft also confirmed its financial targets for the current fiscal year, thanks to a busy release schedule.

Ubisoft publications are closely watched like milk on fire. The video game publisher had greatly disappointed during its 2022-2023 financial year (ended last March) which had led it to postpone several major games and burn more than 400 million euros in cash.

This time, the market appreciates the start of the year made by Ubisoft despite the postponement of several titles. The group controlled by the Guillemot family recorded net bookings, or the equivalent of turnover, down 8.7% over one year in published data and 7.7% at constant exchange rates, to 267.7 million euros. This figure exceeds Ubisoft’s own forecasts and those of analysts. In May, the video game publisher said it was aiming for net bookings of 240 million euros, while analysts were a little more optimistic and expected 247.5 million euros.

“This result was expected, in the absence of major outflows during the quarter,” said Deutsche Bank in a note. “This quarter is however historically unrepresentative with a weight, again this year, of less than 15% of expectations for the entire financial year”, wishes to recall for his part Charles-Louis Planade, analyst at TP ICAP Midcap.

“The figure for net reservations, higher than expected, is mainly due to a better dynamic of the back-catalogue” – ie games released before the current fiscal year – continues the German bank.

One hit per month starting in September

The group confirms that it anticipates “strong growth” in its “net bookings” in 2023-2024, as well as non-IFRS operating profit “of around 400 million euros”. Ubisoft intends to relaunch with future releases of Avatar, Star Wars Outlaws and of course the long-awaited Assassin’s Creed Mirage.

In mid-June, the “Ubisoft Forward” conference, during which the group took stock of its upcoming releases, was appreciated by both the specialized press and investors. From September, Ubisoft will delight video game aficionados with “one hit per month” recalls TP ICAP Midcap which lists the following releases: Motorfest (September), Assassin’s Creed Mirage (October), Just Dance (end of October), Avatar (December) and Prince of Persia (January).

For Charles-Louis Planade, Ubisoft will also benefit from the potential, but unexpected, success of several free to play titles (free with advertising, editor’s note) including XDefiant. The analyst shows his confidence for the next financial year; which according to him will be “loaded” with the next Star Wars, whose previews (critical) “are all exceptional”.

“All the games, and there will be many, are confirmed, as is our very positive short-term feeling on the file,” continues the research department, which reiterated its recommendation to buy and its price target at 80 euros.

On the Paris Stock Exchange, these announcements are appreciated, Ubisoft progresses by 4.6%, around 12:05 p.m. Friday.