French video game giant Ubisoft on Thursday reported weaker earnings in the first quarter of the financial year, after a difficult trading day that saw its shares fall.
Revenue fell almost 14 percent in April-June to 268 million euros ($305 million), Ubisoft said after the close of the Paris market.
The stock had earlier fallen more than 14 percent to 4.73 euros, against a broader SBF index, down 1.5 percent.
Ubisoft’s first-quarter earnings came after it reported a net loss of 1.5 billion euros in 2025-2026.
“Net bookings”, the company’s preferred income measure, which excludes some deferred sales, was slightly lower in April-June, falling nine percent to 256 million euros.
The year-over-year comparison was weighed down by the lack of a major release in the quarter to rival last year’s hit Assassin’s Creed Shadows, released in March, Ubisoft said in a statement.
It added that it had slightly exceeded its forecasts for the quarter.
Bright spots for Ubisoft include the launch this month of Assassin’s Creed Black Flag Resynced, a remake of one of the most popular titles in its flagship series that the company said had sold 3.5 million copies.
It was the first title released by Vantage Studios, a new subsidiary that handles major Ubisoft franchises including Assassin’s Creed, Far Cry and Rainbow Six.
The launch of Black Flag was “an encouraging sign,” chief executive Yves Guillemot said in the statement, adding that the release had “exceeded the annual expectations we had” in the first two weeks of sales.
That could help power Ubisoft into a second quarter with net bookings of “around 370 million euros,” the company said.
However, it stuck to its full net bookings forecast “by a high single-digit percentage” compared to the previous financial year.
Ubisoft also expects a “high single-digit” percentage decline in its operating margin calculated under non-IFRS accounting standards.
As it restructures in an effort to fend off acrimony, Ubisoft in June closed studios in Winnipeg, Canada, and the Serbian capital Belgrade.
It has continued with layoffs at subsidiaries, including in the Spanish city of Barcelona, where staff have gone on strike over job cuts in recent weeks.
Ubisoft aims to reduce its costs by at least 200 million euros in two years, on top of the 300 million already targeted in recent years.
The austerity measures have not reassured investors, with the stock shedding 26 percent of its value since the start of this year.
