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Ubisoft Shares Dive 18 Percent After Latest Financial Report
Not even the release of Assassin's Creed: Brotherhood is preventing a firesale following the French publisher's weaker than expected financial reports.
After releasing its financial results yesterday, which included news of a first-half net loss of 89.8 million euros, pending studio restructuring, terminated projects, and delays for Ghost Recon: Future Soldier and Driver: San Francisco, Ubisoft share prices fell 18 percent to 7.95 euros ($10.71), which Bloomberg reports is the biggest drop since at least 1996. Though some games like Scott Pilgrim vs. The World and Just Dance sold well, the acronym heavy games H.A.W.X. 2 and R.U.S.E. were both cited as performing below expectations.
Gamasutra reports that in response, Ubisoft has received ratings downgrades to "hold" from "buy" from Deutsche Bank AG and to "reduce" from "buy" from Natixis SA. Wedbush Securities analyst Michael Pachter also chimed in, calling the performance "well below expectations."
However, Ubisoft should close the year on a high note, with Assassins Creed: Brotherhood. Just Dance 2, and Michael Jackson: The Experience all positioned to sell well.
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