Analyst Note| Neil Macker, CFA |
Ubisoft reported a weak start to fiscal-year 2022 as first-quarter revenue declined 17% to EUR 353 million. While Ubisoft only reports revenue for its fiscal first- and third-quarter results, management reiterated its targets for fiscal 2021 despite pushing back the release dates for Rainbow Six Extraction and Riders Republic. The firm will still release multiple digital-only titles this fiscal year, including expansions for Assassin’s Creed Valhalla and Watch Dogs: Legion along with new seasons for Rainbow Six Siege and For Honor. We are maintaining our narrow moat and fair value estimate of EUR 81.