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n0t_u wrote:So they just price them high enough so they don't have to make many? I can see the Ferrari comparison now.

Seems like it :3

I'm mildly amused by the undertone I'm seeing that total sales dropped primarily because of a rebellion of gamers against Games Workshop increasing their prices, and not perhaps by the fact that if you live in the EU or North America, chances are you're presently struggling to pay the bills in the first place.

Earnings per share of 22.1p (2010: 15.6p)

That, however, has me scratching my head.

Sales dropping would be a combination rather than exclusively one way or the other, simply the amount complaining alone wouldn't make enough of an impact leaving.

Avakael wrote:I'm mildly amused by the undertone I'm seeing that total sales dropped primarily because of a rebellion of gamers against Games Workshop increasing their prices, and not perhaps by the fact that if you live in the EU or North America, chances are you're presently struggling to pay the bills in the first place.

Earnings per share of 22.1p (2010: 15.6p)

That, however, has me scratching my head.

Im amused that you thought that, but not the case.

Its not any successful rebellion ( not even related ) , but rather the comedy that GW keep raising prices despite the situation you just described.

The audacity ^-^

So, around about a 3% dip in revenue from Europe and Austrailia combined? Doesn't seem too bad in the current climate.

How much further up can they push gross margin?

Is this the first time GW has raised prices and seen static revenue? Could be an indication that next time would reduce revenue, if so.

LunaHound wrote:

Avakael wrote:I'm mildly amused by the undertone I'm seeing that total sales dropped primarily because of a rebellion of gamers against Games Workshop increasing their prices, and not perhaps by the fact that if you live in the EU or North America, chances are you're presently struggling to pay the bills in the first place.

Earnings per share of 22.1p (2010: 15.6p)

That, however, has me scratching my head.

Im amused that you thought that, but not the case.

Its not any successful rebellion ( not even related ) , but rather the comedy that GW keep raising prices despite the situation you just described.

The audacity ^-^

Well, seems to be working for them.

o.0 really? the stats doesnt say its working

LunaHound wrote:o.0 really? the stats doesnt say its working

· Revenue at £62.7m (2010: £60.0m)

Any gain, even one that small in this global economic environment = "working".

Avakael wrote:I'm mildly amused by the undertone I'm seeing that total sales dropped primarily because of a rebellion of gamers against Games Workshop increasing their prices, and not perhaps by the fact that if you live in the EU or North America, chances are you're presently struggling to pay the bills in the first place.

Earnings per share of 22.1p (2010: 15.6p)

That, however, has me scratching my head.

GW themselves have said their business is not affected by the general state of the economy. I somewhat doubt that.

However, GW sales volumes (number of boxes shifted) appear to have been dropping for years, while revenue has been sustained by higher prices.

LunaHound wrote:o.0 really? the stats doesnt say its working

I think they were joking.

Mr. Burning wrote:So, around about a 3% dip in revenue from Europe and Austrailia combined? Doesn't seem too bad in the current climate.

How much further up can they push gross margin?

Economy in Australia is actually doing alright due to exports to countries such as China. I'm not surprised the embargo didn't have a huge impact anyway as likely the amount it would effect would simply be too small. It'd have no effect on the majority they prefer to buy in store.

Not sure why they lump them together though, it'd make more sense to separate Australia or at least use the Australasia region.

darrkespur wrote:Is this the first time GW has raised prices and seen static revenue? Could be an indication that next time would reduce revenue, if so.

They have been fairly static for a few years now. Nothing major since the LOTR bubble anyway. 6th ed this year should see GW pretty for another 12 months at least.

Should sales truly decline then future growth would possibly come outide of core retail. I could imagine that licencing could be ramped up. I'm sure a Fisher Price My First Daemonette would see a major sales upsurge!

Avakael wrote:

LunaHound wrote:o.0 really? the stats doesnt say its working

· Revenue at £62.7m (2010: £60.0m)

Any gain, even one that small in this global economic environment = "working".

That, I cannot agree with you, but that opens a whole new complicated debate

n0t_u wrote:Economy in Australia is actually doing alright due to exports to countries such as China. I'm not surprised the embargo didn't have a huge impact anyway as likely the amount it would effect would simply be too small. It'd have no effect on the majority they prefer to buy in store.

Not sure why they lump them together though, it'd make more sense to separate Australia or at least use the Australasia region.

Australian customers probably have similar enough buying patterns to Europe to lump them together- also note that Australia and New Zealand aren't exactly a large market, so giving them their own mention is kind of unnecessary.

They lumped Aussies and Europe together because... / drumrolls

MAELSTROM and WAYLAND!











j/k

LunaHound wrote:

Avakael wrote:

LunaHound wrote:o.0 really? the stats doesnt say its working

· Revenue at £62.7m (2010: £60.0m)

Any gain, even one that small in this global economic environment = "working".

That, I cannot agree with you, but that opens a whole new complicated debate

Looking from an institutional investors point of view it's pretty good going. The majority shareholder must be thrilled!

Just made more sense to have an overview geographically of sales to me.

LunaHound wrote:

Avakael wrote:

LunaHound wrote:o.0 really? the stats doesnt say its working

· Revenue at £62.7m (2010: £60.0m)

Any gain, even one that small in this global economic environment = "working".

That, I cannot agree with you, but that opens a whole new complicated debate

Well, if it's a lower gain in profit in comparison to normal, then yes, it's not as good as normal, but I haven't seen these statistics to deduce either way. And while it's also fairly easy to conclude (whether correctly or incorrectly) that Games Workshop is only trying to maintain short term profit by raising prices, and in the process accept the risk of potentially harming long term interests by driving notable numbers of customers to other gaming systems, they're still successfully maintaining the short term profit. I shall give Games Workshop's due, by giving them my best expression of general indifference.

Christmas boosts the sales of most retail outlets quite substantially.

If there is even a small increase in these 6 months, in the wake of the finecast fiasco and price rises, before Christmas figures are taken into consideration I think GW will be on for a good one next half year.

More store closures on the horizon?

To be fair, I always thought there were an awful lot of GW stores.

Can someone help me understand this?

GW upped it's prices for some reason last year.

Now they're saying they have "truly surplus cash" so are paying out large dividends to the shareholders.

I'm now wondering why they had to put the price up at all.

Yeah on the face of it you would have to say that it looks like a pretty good 6months for GW, but the real proof I think will be in the years results. Certainly Mr Wells is putting a very positive light on it.

Only 4-5 months of the embargo atm and including Christmas could push it up or down. I'm interested to see what way it goes.

Allot of high street chains have reported good Christmas and new yer sales by those were with actual "sales" whether GW will see the same without remains to be seen.

Kilkrazy wrote:However, GW sales volumes (number of boxes shifted) appear to have been dropping for years, while revenue has been sustained by higher prices.

We often moot this theory, but it doesn't take into account any shift in buying habits. I've been getting stuff from Dark Sphere recently. The money is going to GW in the long run but it constitutes a drop in revenue (because I bought it at a cheaper cost). However they have still "made the sale".

obsidianaura wrote:Can someone help me understand this?

GW upped it's prices for some reason last year.

Now they're saying they have "truly surplus cash" so are paying out large dividends to the shareholders.

I'm now wondering why they had to put the price up at all.

It states that prices were raised (plus efficiencies) to combat increased costs in the release.

It also note a large paymenfrom royalties (renewal of the THQ licence) which has boosted cash.

Dividedends are paid to shareholders because they own the company and have rights to a Share of the profits. This is factored in to the accounts. The cash figure s slightly different and can represent a number of things.

My guess is that pay rises, transport and property costs have increased requiring the rise. Inflation is still high in the UK so I would expect another one come July.

Yey! I get £12.76 from GW for the 44 shares I own!!

Flashman wrote:

Kilkrazy wrote:However, GW sales volumes (number of boxes shifted) appear to have been dropping for years, while revenue has been sustained by higher prices.

We often moot this theory, but it doesn't take into account any shift in buying habits. I've been getting stuff from Dark Sphere recently. The money is going to GW in the long run but it constitutes a drop in revenue (because I bought it at a cheaper cost). However they have still "made the sale".

Also the move from smaller blister packs towards larger unit boxes and multi unit boxes.

Mr. Burning wrote:

darrkespur wrote:Is this the first time GW has raised prices and seen static revenue? Could be an indication that next time would reduce revenue, if so.

They have been fairly static for a few years now. Nothing major since the LOTR bubble anyway. 6th ed this year should see GW pretty for another 12 months at least.

I assume we will see a range of Hobbit stuff appear next christmas to re-inflate the LOTR bubble. That is pretty much the reason I think they have kept LOTR going for the last year or so.

Howard A Treesong wrote:I assume we will see a range of Hobbit stuff appear next christmas to re-inflate the LOTR bubble. That is pretty much the reason I think they have kept LOTR going for the last year or so.

Yes, I'm afraid I will be buying any Company of Dwarfs set that comes out

Haha me too, I love the LoTR Dwarves and have a collection of them even though I have never used them in a game

notprop wrote:Yeah on the face of it you would have to say that it looks like a pretty good 6months for GW, but the real proof I think will be in the years results. Certainly Mr Wells is putting a very positive light on it.

Only 4-5 months of the embargo atm and including Christmas could push it up or down. I'm interested to see what way it goes.

Allot of high street chains have reported good Christmas and new yer sales by those were with actual "sales" whether GW will see the same without remains to be seen.

That's the sticking point. Most, if not all retailers had a sale of some sorts, GW doesn't do sales, so it will be interesting to see if this did affect them.

notprop wrote:

Flashman wrote:

Kilkrazy wrote:However, GW sales volumes (number of boxes shifted) appear to have been dropping for years, while revenue has been sustained by higher prices.

We often moot this theory, but it doesn't take into account any shift in buying habits. I've been getting stuff from Dark Sphere recently. The money is going to GW in the long run but it constitutes a drop in revenue (because I bought it at a cheaper cost). However they have still "made the sale".

Also the move from smaller blister packs towards larger unit boxes and multi unit boxes.

It would not help GW to sell more boxes through discounters while maintaining an increasingly irrelevant retail chain of their own, to sustain revenue at the same level.

It also contradicts the experience of the various anti-indi crackdowns, most recently the attempt to prevent sales out of "region".

It seems reasonable to assume that GW's unit price to distributors is increased at more or less the same as the retail price in their own shops. If so, then the discounted retail price will more or less follow, thus in the long term, there wouldn't be an increasing shift from buying at GW retail to buying at discounted retail.

The sales/revenue trend can be followed back to 2,000.