Games Workshop’s profits continue to grow as fans show loyalty to the Warhammer brand after the lockout

  • The Warhammer creator’s core revenue rose 9.5% in the year to May 2022
  • Trade continues to grow after the coronavirus pandemic
  • The company has restored relations with customers after disagreements over IP

Games Workshop Group has again posted a jump in profit and pre-tax income for the financial year.

The Warhammer maker’s pre-tax profit rose 3.7 per cent to £156.5m in the year to May 2022, while revenue rose 12.25 per cent to £414.8m in the same period.

The Nottingham-based company has seen record levels of trading since the start of the coronavirus pandemic as people sought to keep themselves busy while spending more time at home.

Analysts expect the company’s success to continue despite economic conditions, as hobbies tend to be “resilient during recessions.”

Games Workshop posted a profit of £191.5m in the latest half-year, up from £148.4m in the same period two years ago, thanks to strong growth in online shopping and sales to retail customers.

Over the past year, dividends per share have soared 54 per cent to 285p from 185p in May last year.

Kevin Rowntree, CEO of Games Workshop, said: “It’s been another amazing year. Again, it reassures me that some things don’t change – our staff and customers love Warhammer. I thank you all for helping to make this another very successful year.”

Core revenue for the period jumped 9.5 per cent to £386.8m.

Games Workshop estimates it lost around £4m in net income for the year as a result of the suspension of trading in Russia following that country’s invasion of Ukraine in February.

While the firm opened 10 new stores worldwide in the year, including relocations, it closed 15, bringing its total to 518.

It also reported a 3 percent drop in online sales from a year earlier as in-store sales normalized.

Games Workshop promotions fell 2.12 percent in early trade to 7,335 pence, making losses 27.3 percent since the start of 2022.

Games Workshop’s board said: “We are at the forefront, have a clear strategy for our core and licensing business, a culture built on long-proven principles, a pretty good operating plan based on the progress we’ve made, a work ethic based on trust and a hobby that is fun and keeps you busy.

“We look forward with great confidence. Our aim remains the same – to deliver on our strategy and share the love of Warhammer around the world.”

In the past, the company has clashed with fans over the fact that it aggressively protects its intellectual property. This included tactics such as lawyers sending letters to online fan forums accusing their members of copyright infringement.

In a research note, investment bank Peel Hunt praised Games Workshop’s results: “Full-year profit increased 4 per cent to £156.5m and 6 per cent at constant currency, which is a good result given the pressure from Covid, supply chain . disruptions and higher freight costs.

“The company announced a dividend of 90p, which is in line with last year’s cash payout and demonstrates continued good earnings and cash performance.

“The company aims to increase sales and maintain margins. Hobbies tend to be pretty resilient during recessions (as evidenced by the GFC) and Games Workshop has plenty of new products to tap into its hobbyist base. There are still significant opportunities for growth in North America and (longer term) Asia, as well as IP monetization.”


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