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Ubisoft Gets Boost From Lockdown, Warns of Possible Game Delays

Ubisoft Gets Boost From Lockdown, Warns of Possible Game Delays

(Bloomberg) -- Ubisoft Entertainment SA benefited from unprecedented lockdowns across the world, with populations stuck at home spending more on its video games.

Net bookings -- a crucial gauge of sales -- came in at 417.4 million euros ($450.4 million) in the fourth quarter, Ubisoft said Thursday, outpacing guidance of 333 million euros given in February.

“Starting mid-March, the lockdown led to a sharp increase in player engagement,” Chief Financial Officer Frederick Duguet said in a statement. Titles such as Rainbow Six Siege, the online tactical shooter game, proved particularly successful with players.

But the French company also warned of uncertainties ahead, saying the Covid-19 pandemic could delay some releases.

“The transition to working from home has had short-term repercussions on our production, for the time being limited to a few weeks,” Chief Executive Officer Yves Guillemot said. On a call with analysts, he mentioned challenges notably with “motion capture” and voice recording for its games.

As a result, the company widened its revenue projection for the current year, saying net bookings could range from 2.35 billion euros to 2.65 billion euros. Ubisoft previously forecast 2.6 billion euros.

That range allows Ubisoft to postpone one of its top games until the 2021-2022 year. For the time being, Ubisoft plans to release five such titles this fiscal year: Assassin’s Creed Valhalla, Watch Dogs Legion, Gods & Monsters, Rainbow Six Quarantine and a yet-to-be-announced franchise.

Ubisoft’s fourth-quarter performance follows similarly strong results from U.S. rivals Electronic Arts Inc. and Activision Blizzard Inc., which enjoyed revenue bumps. Activision’s Candy Crush bloomed, as did its Call of Duty franchise. EA’s Madden NFL 20 has seen its highest engagement levels in history.

©2020 Bloomberg L.P.