July 18 (Reuters) - French video game maker Ubisoft

reported first-quarter net bookings above expectations

on Thursday, citing robust engagement metrics driven by its

Game-as-a-Service (GaaS) franchises.

After four years of negative cash flows due to game

cancellations and delays, the current financial year could prove

to be a turnaround one, as Ubisoft is set to launch two

high-profile games in the coming months, adding to the expected

benefits from its new subscription model.

"The quarter was marked by strong session days growth of 15%

across Consoles and PC," Assasin's Creed maker said in a press

release.

Quarterly bookings were 290 million euros ($316.25

million)versus Ubisoft's own forecast of 275 million euros and a

consensus of 300 million euros, as cited by TD Cowen in a

preview note.

The family-owned company said it expects second quarter net

bookings to come at around 500 million euros, boosted by the

launch of Star Wars Outlaws on Aug. 30, said group CFO Frederick

Duguet during a media call.

Net bookings growth should be supported by the continuation

of group-wide cost reduction plan and, as Duguet put it,

"targeted restructurations", which might translate into

potential layoffs. "Headcount is set to continue decreasing in

this last quarter," he said.

Rainbow Six Mobile and The Division Resurgence are no longer

expected in 2025. The release date of "Assasin's Creed Shadows"

is maintained, on Nov. 15.

The group reiterated that it expects solid net bookings

growth, a slight increase in operating profit and a positive

cash flow in the 2025 fiscal year that started in April.

Some analysts expect the video game industry to return

Assasin's Creed Shadowsto growth from 2025, driven by a mix of

new content, evolving business models and new platforms.

($1 = 0.9170 euros)