February 14, 2019 / 5:00 PM / a year ago

Ubisoft cuts FY sales target amid fierce competition

Feb 14 (Reuters) - French video game producer Ubisoft cut its revenue guidance by 5 percent to 1.90 billion euros on Thursday, but reiterated its 2018-2019 operating profit and free cash flow guidance.

It cited clarifications on IFRS (International Financial Reporting Standards) norms and intense competition as the reason for the cut.

Third quarter sales stood at 562.0 million euros, below the company’s expectations of 580 million euros.

Ubisoft confirmed its other targets for the full year.

Charles-Louis Planade from Midcap Partners said confirmation of the operating profit and free cash flow guidance came as a relief.

The company’s shares have come under pressure following cuts in revenue forecasts by its competitors Activision and Electronic Arts earlier this month. (Reported by Camille Raynaud Editing by Alexandra Hudson)

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