Ubisoft cuts full-year guidance as COVID-19 delays two games

·1-min read
The logo of Ubisoft is seen in Montreuil
The logo of Ubisoft is seen in Montreuil

(Reuters) - French video game maker Ubisoft <UBIP.PA> cut its outlook for the year as the COVID-19 pandemic delayed the production of blockbuster games Far Cry 6 and Rainbow Six Quarantine, it said on Thursday.

The production challenges were related to work from home, Ubisoft said in a statement.

The maker of gaming franchise Assassin's Creed expects net bookings of 2.20 billion to 2.35 billion euros ($2.78 billion) and an operating income in the 420 million to 520 million euros range for its 2020-2021 fiscal year.

It previously expected net bookings of 2.35 billion to 2.65 billion euros and an operating income in the 400 million to 600 million euro range.

Ubisoft told analysts on a conference call it expected the three games to be launched this fiscal year to still be going strong in 2021-2022.

In October last year, the French game maker had to cut its annual profit targets and delay blockbuster game releases.

Despite the outlook cut, the company reported net bookings in the second quarter of 344.7 million euros, well above its target of about 290.0 million euros.

Shares in Polish rival CD Projekt <CDR.WA> fell sharply on Wednesday after the company postponed its highly anticipated "Cyberpunk 2077" for the third time.

(Reporting by Charles Regnier. Editing by Jane Merriman)