Ubisoft Falls Short of Q3 Projections; 2023 to Feature Three AAA Titles and Two Major F2P Games

Ubisoft missed fiscal third-quarter expectations with net bookings of EUR 746 million coming in below FactSet consensus. Ubisoft only reports revenue for its fiscal first and third quarters. The firm’s fiscal 2023 slate includes three AAA titles and at least two major free-to-play games but will not include a new installment of Assassin’s Creed. We maintain our narrow moat but lowering our fair value estimate to EUR 75 from EUR 81 after reducing our expectations for fiscal 2022 and 2023.