Ubisoft shares plunge 16% after Assassin’s Creed maker warns of annual profit loss

Ubisoft's shares experienced a significant downturn of 16% on Thursday following alarming warnings from the video game giant about potential financial losses this year. This decline marks another chapter in a troubling trend for the company, which has struggled with stock price declines since the onset of the Covid-19 pandemic, compounded by delays in major game releases and ongoing financial challenges. In January, shares plummeted by 34% after Ubisoft announced a comprehensive restructuring plan. CEO and co-founder Yves Guillemot provided insight into the company's current trajectory, stating that the upcoming financial year is anticipated to be a low point in their free cash flow journey. He highlighted a combination of a softer release slate and the costs associated with restructuring as contributing factors to this forecast. "This two-year transformation entails making tough decisions and will likely result in disappointing short-term financial outcomes," Guillemot remarked in a statement released Wednesday. "However, I am confident that these measures will better position Ubisoft for sustainable cash flow in the long run." As of the latest trading session, the stock was down by 16.7%, reflecting a staggering decline of approximately 38% year-to-date. This situation is evolving, and updates are expected as the story develops.