Video-game maker stock stumbles to its worst day ever as remake of popular 'Prince of Persia' is cancelled

By Steve Goldstein

Ubisoft shares tumble in Paris trade

Visitors play the "Prince of Persia: The Lost Crown 8" upcoming platform action-adventure video game developed and published by Ubisoft during the "Paris Games Week" fair in Paris, on November 1, 2023. (Photo by BERTRAND GUAY / AFP) (Photo by BERTRAND GUAY/AFP via Getty Images)

The cancellation of six video games in the works as part of a broad restructuring sent Ubisoft Entertainment shares to their worst day on record on Thursday.

Ubisoft stock (FR:UBI) skidded 36%, its worst day since its 1996 initial public offering, as it shelved a remake of Prince of Persia and also delayed an unannounced title by a year.

Ubisoft's net bookings forecast for EUR1.5 billion for the fiscal year implies as much as a 20% cut after the video-games maker in the suburbs of Paris said it'll trim EUR200 million of costs over the next two years.

The maker of Assassin's Creed, Far Cry, and Rainbow Six games said it will lose about EUR1 billion on an adjusted basis before interest and tax this fiscal year, vs. a previous estimate of around breakeven.

"This is a dire profit warning in a long string of unmitigated disasters," said analysts at Bernstein.

It's a big win for Citadel, which according to French securities filings had a short bet equivalent to 0.89% of the company as of Tuesday, implying a profit of some EUR240 million just on Thursday's move.

A London firm, Marchant MC, also had a short bet, worth 0.56% of the company.

-Steve Goldstein

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