Ubisoft's stock experienced a significant decline of 16% after the company announced it expects further losses this year, marking a continuation of its struggles since the Covid-19 pandemic.
The company's CEO, Yves Guillemot, indicated that the next financial year is likely to be a low point for free cash flow, compounded by a reduced release schedule and costs associated with restructuring efforts. This announcement follows a 34% drop in January when Ubisoft revealed a major restructuring plan.
Guillemot emphasized that while the transformation involves tough decisions and disappointing short-term results, it is aimed at positioning Ubisoft for sustainable cash flow in the future. Year-to-date, the stock has fallen approximately 38%, reflecting ongoing investor concerns about the company's financial health and strategic direction