Games Workshop Shares Record-Breaking Rocket for Guide Improvement

Games Workshop has raised its annual guidance, as the board game company raised its full-year guidance following better-than-expected sales in the past two months.

The group, which owns the Warhammer brand, told investors on Friday that it expects to post core and licensing revenues of at least £260m and £30m respectively over the 12 months to December 1.

It would mark an impressive improvement in core revenue of £236m and licensing income of £13m on the same period last year.

The company says it is now on track to make pre-tax profits of at least £120m, well ahead of the £96m made in 2023.

Games Workshop has been rewarding investors with bumper payouts this year as the group capitalizes on its sustained success in the workshop and on screen.

Russell Pointon, consumer director at Edison Group, said Games Workshop has benefited from the release of Warhammer’s Age of Sigmar fourth edition.

But “the real surprise,” Pointon added, comes from licensing revenue, which offers “a very profitable revenue stream.”

He said: “The company’s growth rate is testament to its ability to evolve its intellectual property and engage with its customers.”

Games Workshop’s lucrative licensing income comes from an increasingly wide range of sources; from video games and big-budget movies to last year’s Warhammer Panini sticker book.

Analysts at Peel Hunt said Games Workshop’s latest update “is very impressive” given the strong comparisons to the release of Warhammer 40k last summer.

Peel Hunt upgraded its price target on its Games Workshop shares from £120 to £135.

Games Workshop Stock They were up 16.2 per cent to £136.10 at midday, taking blockbuster gains over the past five years to around 140 per cent.

Peel Hunt said: “The hobby remains in excellent health and the success of Space Marine 2 has raised its profile and contributed to short-term revenues.”