July 18 (Reuters) - French video game maker Ubisoft

reported first-quarter net bookings above its own

forecast 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," Assassin'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. That

was still below a consensus of 300 million euros, as cited by TD

Cowen in a preview note.

The family-owned company 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 to

growth from 2025, driven by a mix of new content, evolving

business models and new platforms.

($1 = 0.9170 euros)