Ubisoft Entertainment SA (EPA: UBI) is a global video game company that engages in the production, publishing, and distribution of games for various platforms, including consoles, PCs, smartphones, and tablets. They offer games in both physical and digital formats. Over a five-year period from 2013 to 2018, the company witnessed impressive shareholder returns, with an increase of nearly 500%. However, during the fourth quarter of 2018, the stock performance experienced a decline. Nonetheless, Ubisoft's management remained optimistic, projecting growth and enhanced profitability. They attributed this positive outlook to several factors, including the promising Chinese market, a rise in digital revenue, and emerging opportunities in the streaming sector. Despite the temporary setback, the overall sentiment towards investing in Ubisoft and the gaming industry as a whole remained optimistic and bullish.

Analyst, London-based Long/Short Equity Hedge Fund

The insights on the gaming sector uncovered by MGoldinsights which is quite positive. The credibility of their coverage and the thoughtfulness of their questions around “why” gave us the confidence to exit our position before the stock fell.

1. Research Insights

   Over the past five years, MGoldinsights Forum has provided comprehensive coverage of the gaming sector, delving into various aspects such as key suppliers, publishers, and distribution partners across major global locations, including China. Our extensive research has explored a wide range of topics, extracting valuable insights on crucial issues. These include the distribution strategies of third-party and direct-to-consumer publishers, the expansion of the Chinese market, opportunities in streaming, the performance of new game releases, digital revenue trends, in-game spending patterns, and player engagement trends. Through our in-depth analysis, we aim to provide valuable information and actionable insights to investors and industry stakeholders in the gaming sector.

2. Through our interview transcripts, we uncovered a wealth of significant insights that are particularly valuable for equity investors. These insights include perspectives that challenge the viewpoints expressed by Ubisoft's company management. Moreover, our research delved into the various catalysts that contributed to the underperformance of the gaming sector, providing a detailed analysis of their individual influences and the extent of their impact on companies like Ubisoft. Our research goes beyond surface-level analysis, providing granular detail to aid investors in making informed decisions.

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