UPDATE 2-Ubisoft expects 39% drop in third-quarter net bookings

Reuters10-31
UPDATE 2-Ubisoft expects 39% drop in third-quarter net bookings

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Oct 30 (Reuters) - French video game producer Ubisoft UBIP.PA expects net bookings for its third quarter to be down about 39% year on year to about 380 million euros ($412 million) because it has no new releases in the quarter, finance chief Frederick Duguet told reporters on Wednesday.

Ubisoft, which has lost half of its stock market value over the last twelve months, has been plagued by delays and the underperformance of some key titles including a muted reception to the launch of Star Wars Outlaws in August, which did not meet sales expectations.

It has also begun a review aimed at improving the company's performance and looking at strategic options.

"The Executive Committee review, aimed at improving our execution focused on a player-centric and gameplay-first approach, is progressing," CEO Yves Guillemot said.

"We remain committed to making decisions in the best interests of all of our stakeholders", he added.

Earlier this month Bloomberg News reported that Tencent Holdings 0700.HK and Ubisoft Entertainment's founding Guillemot family are considering options including a potential buyout of "Assassin's Creed".

The company said at the time it regularly reviewed its strategic options in the interest of its stakeholders.

Ubisoft on Wednesday 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.

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.

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

(Reporting by Adrianna EbertEditing by David Goodman, Elaine Hardcastle)

((Adrianna.Ebert@thomsonreuters.com; +48 58 769 65 88;))

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