The video game maker also postponed the release of its earnings.
Ubisoft (UBI.PA), the French video game maker, startled investors Thursday by postponing the release of its first half financial results and halting trading of its stock.
The company, which makes popular video games Assassin’s Creed, Far Cry, Rainbow Six, and Just Dance, halted trading of its stock, effective Friday November 14. Ubisoft, based in France, trades on the Euronext Paris stock exchange.
The stock price was stuck at €6.77 per share on Friday, or $1.43 per share for the American Depository Receipt (ADR) that trades on the US OTC Markets.
“Ubisoft announces the postponement of the release of its results for the first half of fiscal year 2025-26,” the company announced in a release late Thursday. “Ubisoft has requested Euronext to halt trading of its shares … and its bonds … from the market opening on November 14, 2025, until the publication of its first-half 2025-26 results in the coming days. Ubisoft will inform the market of the date on which trading will restart.”
The announcement came roughly 15 minutes before the release data, according to reports.
What does this mean?
Ubisoft stock has had a difficult year, down about 48%. Since reaching a high of around €85 per share in January 2021, it has fallen some 91% to the current €6.77 per share price.
According to Reuters, trading was halted and the earnings release was postponed “to limit unnecessary speculation and market volatility during this short delay,” according to an internal memo to employees from Chief Financial Officer Frederick Duguet. The memo added that the firm was “taking extra time to finalize the closing of the semester.”
In the first fiscal quarter, Ubisoft saw sales decline 4% year over year, and net bookings drop 3%, which was below expectations.
In its outlook for Q2 — the postponed results — net bookings were expected to come in at around €450 million, which would have marked significant growth over the Q1 €2860 million total.
“Expected growth vs. Q1 is driven by strategic B2B partnerships, including new ones, growing Rainbow Six Siege X contribution and material TV Series milestone-based revenues, the firm said.
For the full fiscal year, it guided for stable net bookings year-over-year, approximately break-even operating income and negative free cash flow.
Tencent invests €1.16 billion
Earlier this year, Chinese entertainment conglomerate Tencent Holdings invested €1.16 billion, a 25% stake, in a new subsidiary that Ubisoft created that focuses on its three main action titles, Far Cry, Assassins Creed, and Rainbow Six.
Following the closing of the Tencent transaction, anticipated by the end of this year, Ubisoft is expected to have a net debt position of around zero for this new group. Beyond that, the group expects to return to positive operating income and free cash flow generation.
Could this delay have something to do with the Tencent deal?
Earlier this year, EA Sports went private in a $55 billion buyout deal, the largest ever.
