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Video games group Ubisoft's shares slump as results miss forecasts

The UBISOFT logo is shown at E3, the world's largest video game industry convention in Los Angeles, California, U.S. June 12, 2018. REUTERS/Mike Blake/Files

PARIS (Reuters) - Ubisoft's shares slumped on Thursday, after the fourth quarter results of the French video games group missed market forecasts.

Ubisoft shares, which have hit record highs in the last year, were down by around 12% in early session trading, reducing much of the gains previously made by the stock in 2019.

Ubisoft reported late on Wednesday fourth-quarter net bookings of 676.7 million euros ($758.3 million), below the company's expectations of approximately 698 million euros.

"While we continue to see a large catch-up opportunity around operating margin vs its peers, we remain somewhat cautious around the slate of releases for 2020," wrote brokerage Jefferies, keeping a "hold" rating on Ubisoft shares.

($1 = 0.8924 euros)

(Reporting by Sudip Kar-Gupta and Pawel Goraj; Editing by Leigh Thomas)