Shares of Ubisoft sank 18% on Thursday after the French video game firm reported full-year earnings that disappointed investors.

Ubisoft reported a 20.5% drop in net bookings for the fiscal year ending March 31, 2025, as a strong performance of the company’s latest “Assassin’s Creed” game did little to boost its full-year sales. “Assassin’s Creed: Shadows” was released in March following two consecutive delays.

Ubisoft cited “lower than expected partnerships” for the decline in net bookings, which totalled 1.85 billion euros ($2.1 billion). The company also reported an operating loss of 15.1 million euros for the year.

The game maker’s full-year 2025-26 outlook also failed to impress. The firm said it sees net bookings for the current fiscal year being “stable” year-on-year and that it expects to break even on a non-IFRS operating income basis.

Ubisoft shares were down 18.3% as of 5:57 a.m. ET, at a price of 9.56 euros. The stock fell by as much as 19% earlier in the session.

The company’s shares have lost almost 60% of their value in the past 12 months, as the firm faced financial struggles, development hurdles, and underperformance of some of its key titles.

In March, Ubisoft revealed plans to form a new gaming subsidiary part-owned by Chinese technology giant Tencent. The new unit will be responsible for developing and publishing its top game franchises including “Assassin’s Creed,” “Far Cry,” and “Tom Clancy’s Rainbow Six.”

Tencent will invest 1.16 billion euros into the subsidiary, giving it a 25% stake. Ubisoft will retain majority ownership and earn royalties on sales related to its key franchises. The game maker said Wednesday that it expects the deal to conclude by the end of 2025.