UK-based Games Workshop Group PLC (GB:GAW) reported a 33% year-over-year growth in pre-tax profits to £126.8 million in the first half. The company credited its strong performance to the successful launch of new editions of Warhammer: Age of Sigmar and Warhammer 40,000: Kill Team, as well as the release of popular video games like Warhammer 40,000: Space Marine 2.
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Games Workshop specializes in designing and producing miniature wargames, with its flagship product being the popular Warhammer 40,000.
Games Workshop Delivers Strong First-Half Results
According to its half-yearly report, Games Workshop’s revenue grew by 20.9% year-on-year to £299.5m. This was driven by a 14.3% rise in core revenue to £269.4m and a nearly 150% surge in licensing revenue to £30.1m. On the flip side, the company’s distribution and stocking capabilities were still recovering from global supply chain disruptions, including the U.S. port strikes.
Additionally, the company finalized a deal with Amazon (AMZN) in December to transform the Warhammer 40k universe into films and TV series, creating a new revenue stream. Overall, analysts believe that this deal could boost licensing revenue and help expand the Games Workshop brand and products to a vast global audience.
Jefferies Analysts Weigh in on GAW Results
Analysts at Jefferies praised the company’s performance during a challenging period, noting that core revenue of £269 million exceeded the expected £260 million.
Additionally, Jefferies analysts stated that Games Workshop’s strong first-half results are even more impressive considering the significant increase of over 20% in its share price over the past six months.
