Ubisoft invests in free-to-play games, signals profits might fall
FILE PHOTO: The UbiSoft Entertainment logo is seen at the Paris Games Week (PGW), a trade fair for video games in Paris, France, October 29, 2019. REUTERS/Benoit Tessier/File Photo
May 11, 2021
By Enrico Sciacovelli and Kate Entringer
(Reuters) – French video games company Ubisoft warned operating profit might fall this financial year as the maker of “Assassin’s Creed” invests in new titles and laps a surge in gaming at the start of coronavirus lockdowns.
However, the company said on Tuesday a strong back catalogue and new releases should help net bookings grow by a “single digit” percentage, after a 46% leap in the year ended March 31.
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(Reuters) - Ubisoft expects its top-line to grow in the 2021-2022 fiscal year, the French video game maker said on Tuesday, citing a big slate of major new releases, a big step in the free-to-play model and a strong back catalogue of games.
FILE PHOTO: The logo of Ubisoft is seen in Montreuil, near Paris, France, July 13, 2020. REUTERS/Charles Platiau
In fiscal year 2021-2022, which begins April 1, the group will continue its evolution from a blockbuster games release-centric model towards a model where flagship games stand alongside free-to-play, Chief Executive Yves Guillemot told analysts in a call.
The COVID-19 pandemic, which forced people to stay at home, boosted demand for games, helping the company’s third-quarter net bookings to rise 120% year-on-year to a record high of 1 billion euros ($1.21 billion).
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