Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today here in Europe. I'm Caroline Hepka, and
Speaker 3: I'm joined by Bloomberg's Breaking News editor Louise Moon Louis
Speaker 3: caim Oni. Let's start in the gaming world. It looked
Speaker 3: like Ubisoft was on the decline earlier, but it's turned around.
Speaker 1: Why indeed, so this is yeah, as you say, the
Speaker 1: video game publishers, they're behind names like Assassin's Creed and
Speaker 1: a lot of others as well. They delayed their third
Speaker 1: quarter results last week without explanation and released them this morning,
Speaker 1: so a week later than expected, and within that they
Speaker 1: said they've been in breach of a loan agreement. So essentially,
Speaker 1: auditors found that Ubosoft had improperly booked sales from a
Speaker 1: partnership and so postponed recognizing revenue from that partnership. Within results,
Speaker 1: they forced to restate their twenty twenty five financial accounts,
Speaker 1: and those changes put it in breach of the loan agreement.
Speaker 1: As I said, so they say that they will address
Speaker 1: those that issue by early repayment of loans and as
Speaker 1: you say, so, shares initially found on the news obviously
Speaker 1: not great news, but then rebounded. It kind of caps
Speaker 1: a week of speculation. People didn't know what was going
Speaker 1: on and essentially a bit of a relief potentially not
Speaker 1: as bad as expected. So a bit of a change
Speaker 1: in tone in share movements this morning, but.
Speaker 3: Up as it currently stands okay. A Sauce has seen
Speaker 3: losses also today a symptom maybe of wider consumer jitters.
Speaker 3: And we had the retail sales because that.
Speaker 1: Up for the UK, we did and they weren't positive
Speaker 1: for the UK, and that's kind of that's being seen
Speaker 1: across the board also in consumer confidence gauges as well.
Speaker 1: That will be impacting a Sooce to an extent. But
Speaker 1: they also kind of have their own problems that they're
Speaker 1: grappling with. So they had their four year results. Losses
Speaker 1: were larger than expected, so fifteen percent drop in revenue
Speaker 1: for the year. They're in the middle of a turnaround.
Speaker 1: They've they've been making a lot of changes to do
Speaker 1: with management, to do with inventory. They've also launched top
Speaker 1: Shop back on the high street within the past year.
Speaker 1: So they're saying that, you know, the difficult part is
Speaker 1: behind them. Losses as I say, have still continued for
Speaker 1: this for year, but they singled some positivity ahead. Shares slumped. However,
Speaker 1: there was a great note from Bloomberg Intelligence saying that
Speaker 1: you know that they're starting off from a week base.
Speaker 1: It's a week recovery base for twenty twenty six. For
Speaker 1: the next year ahead, they've got fewer active customers and
Speaker 1: they really need to win back shoppers and as you say,
Speaker 1: part of that, part of that will be the wider
Speaker 1: economic factors, but they really need to win backshoppers for
Speaker 1: those sales to recover next year.
Speaker 3: Okay, So that on a source now into the oil
Speaker 3: and gas sector, tallow oil a new record low. What
Speaker 3: have analysts been saying about this company?
Speaker 1: So they raised their debt forecast this morning and saying
Speaker 1: that they're holding talks with creditors over options for the business.
Speaker 1: So Tallo essentially you kind of boomed in the late
Speaker 1: two thousands. They took on a lot of major, major
Speaker 1: discoveries in Africa, but with that they took on a
Speaker 1: lot of debts to develop those they're in struggling in
Speaker 1: recent years sold off some of those African assets. But
Speaker 1: this new detail is that they're progressing with creditors on
Speaker 1: other options. So Alis is saying that it increases the
Speaker 1: likelihood of refinancing. It could result in significant equity dilution.
Speaker 1: So shares plunged a record low and actually briefly halted
Speaker 1: trading this morning on back of that news.
Speaker 3: Okay, interesting Sovontana.
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