Dubai Telegraph - Ubisoft shares surge as trading resumes after results 'restatement'

The move, accompanied by a share suspension, had triggered much speculation in the video gaming world, including on a possible takeover operation in a consolidating industry.

But it was actually, the company said Friday, due to a simple "restatement" of its half-yearly results after new auditors found problems with the way Ubisoft had accounted for a partnership.

"This is why we needed more time," finance director Frederick Duguet told a conference call.

Ubisoft's stock was quoted 11.5 percent higher at 7.55 euros in morning business on Paris stock exchange as investors breathed a sigh of relief.

The shares are, however, still quoted more than 40 percent lower than a year ago.

The French publisher is one of the largest video game companies in the world, with some 17,000 employees. Its catalogue includes "Assassin's Creed," "Far Cry," and "Just Dance."

It also said Friday that a "strategic" agreement with Chinese tech company Tencent would be finalised over the coming days.

The deal will give Tencent a minority stake in Ubisoft's new subsidiary Vantage Studios, chairman Yves Guillemot said.

Tencent is to take 25 percent in Vantage Studios -- which will house "Assassin's Creed", "Far Cry" and "Rainbow Siw" -- in return for a cash injection of 1.16 billion euros ($1.33 billion).

For the first six months of its financial year, Ubisoft reported net bookings ahead of forecasts, thanks to "solid" partnerships and income from TV series.

The "Assassin's Creed" franchise, in particular, did better than expected.

Overall sales, however, dropped 2.1 percent to 657.8 million euros.

Ubisoft confirmed its earlier guidance for its full financial year, expecting stable revenues, and profit from ongoing operations close to breakeven.

In a cost-cutting drive since 2023, Ubisoft has shut some of its studios outside France, and cut staff by more than 3,000.

Y.Chaudhry--DT