Ubisoft expects 39% drop in third-quarter net bookings

(Reuters) -French video game producer Ubisoft expects net bookings for its third quarter to be down about 39% year on year at about 380 million euros ($412 million) because it has no new releases in the quarter, finance chief Frederick Duguet told reporters on Wednesday.

Ubisoft also confirmed guidance for the current financial year to March 31 after a September cut following postponement of a new instalment in its “Assassin’s Creed” franchise by three months to Feb. 14.

For the fiscal year it expects net bookings around 1.95 billion euros and around break-even non-IFRS operating income and free cash flow.

Net bookings for the second quarter to Sept. 30 fell 36.5% year on year to 352.3 million euros, in line with guidance of 350 million to 370 million euros.

In the second quarter the back-catalogue, excluding partnerships, was up 12% year-on-year.

“Despite recent setbacks, we are continuing to deeply transform Ubisoft in order to restore the level of creativity and innovation that built Ubisoft’s success while delivering stronger execution and predictability”, CEO Yves Guillemot said in a statement.

He went on to say double-digit growth of the back catalogue highlights the potential to deliver more recurring revenue, sustainable growth, and long-term value for stakeholders.