Ubisoft: Net loss in the first half due to delays and game cancellations

(Reuters) – French video game maker Ubisoft on Thursday reported a net loss for the first half of 2022-2023, which the group attributed to R&D spending that didn’t deliver results and the abandonment of some games.

The company has faced delays, project cancellations and fierce competition in the industry. The title has lost almost 38% since the beginning of the year.

The creator of the popular Assassin’s Creed franchise posted a net loss of €190.2m in the six months ended September 30, compared to a modest profit of €1.6m in the same period last year.

“First-half results reflect, in part, the accelerated amortization of R&D, including already announced canceled projects,” Ubisoft CFO Frédéric Duguet said in a statement.

Ubisoft said in a conference call with analysts in July that it continues to streamline its spending by announcing the cancellation of games like Splinter Cell VR and Ghost Recon Frontline.

However, Ubisoft reiterated its full-year forecast on Thursday and expects third-quarter net sales to be around 830 million euros, thanks to a yet-to-be-finished mobile licensing deal.

The group, which also produces the Prince of Persia franchise, reported a 2.6% decline in net sales to €699.4 million in the six months ended September.

(Report by Enrico Chakovelli and Oliver Sorgo, French version by Augustin Tourpin, edited by Jean-Stephan Brosse)

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