Ubisoft Entertainment (UBSFY) stock took a beating on Thursday following the video game company’s latest earnings report. A major highlight from this report was an operating loss of €1.32 billion. Adding fuel to that fire, Chief Financial Officer Frederick Duguet noted the company has never seen such a large loss before.
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Ubisoft also provided a grim outlook for its current fiscal year. The game publisher expects net bookings for the year to decline in the high single-digit percentage range. It also warned that it expects operating loss margin in the single-digit percentage range.
Ubisoft’s lackluster earnings come amid a transformation. CEO and Cofounder Yves Guillemot said this was expected. He also claimed that “disappointing short-term financial performance” will turn into “sustainable free cash flow over time.”
Ubisoft Embraces AI Games
Ubisoft also told investors that it’s working on a “playable Generative AI experience.” This would be a first for the company. The AI experience is called Teammates. It’s unclear when Ubisoft will release this title, though it could face significant backlash when it does.
On that same note, an insider claimed that Ubisoft is testing generative AI in other games. The individual said that the developer has used it for Far Cry 7’s. This person didn’t appear excited about the use of AI in game development. Instead, they noted that it “looks like s**t.”
How Did Ubisoft Stock Move Today?
It won’t come as much of a surprise that Ubisoft stock was down today. The shares have fallen 1.5% following the company’s earnings report. This extends a 30.34% year-to-date fall and a 12-month 51.58% drop.
UBSFY stock trading activity today was elevated. This saw some 218,000 shares change hands, compared to a three-month average daily trading volume of about 68,000 shares.
