Ubisoft shares plunge 16% after Assassin’s Creed maker warns of annual profit loss

Ubisoft shares plunged 16% on Thursday after the Assassin's Creed maker warned of further losses this year.

The move comes after years of stock price declines for the game developer following the Covid-19 pandemic, delays to major releases and financial struggles. Shares in the company fell 34% in January after the company announced a major restructuring.

The upcoming financial year is "expected to represent a low point in our free cash flow trajectory along with a softer release slate and restructuring costs," CEO and Cofounder Yves Guillemot said in a Wednesday statement.

"This two-year transformation comes with difficult decisions and a disappointing short-term financial performance, but I firmly believe that, together, these actions are better positioning Ubisoft to deliver sustainable free cash flow over time," he added.

The stock was last trading down 16.7% and has fallen around 38% in the year-to-date.

Ubisoft shares in the year-to-date.