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Made in gb
Painting Within the Lines



Welwyn Garden City, Herts

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=GAW


TRADING UPDATE ON CLOSE OF FINANCIAL YEAR ENDED 29 MAY 2016

Following the close of its 2015/16 financial year Games Workshop provides the following trading highlights:

We expect the Group's profit for the year to 29 May 2016 to be slightly above market expectations due to earning more licensing income than we were expecting.

Over the year, sales have been largely the same as the prior year across all channels.

We will provide the detailed information on the results for the 2015/6 financial year at the time of our announcement on 26 July 2016.



Based on licences (Total War?) rather than sales of "stuff" but interesting ahead of the proper full-year results - the last time they announced anything it was that profits for the year would be unlikely to exceed £16M - this would suggest they have.

Mods - feel free to shift this to Discussions if it's more appropriate there - I wasn't sure.


This message was edited 2 times. Last update was at 2017/03/08 11:13:15


   
Made in gb
[MOD]
Et In Arcadia Ego





Canterbury

Good spot and thanks for the heads up

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Made in ca
Revving Ravenwing Biker






Canada

Must be all those models I've been buying direct from GW

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Made in gb
Drop Trooper with Demo Charge




The pound has taken a hit in recent months as well against the Euro, which will help their bottom line and sales figures (when converted into pounds). I guess we'll have to wait and see what "Over the year, sales have been largely the same as the prior year across all channels." actually means though.
   
Made in es
Pulsating Possessed Chaos Marine





One also has to wonder what "market expectations" are exactly.

Let's see.

Progress is like a herd of pigs: everybody is interested in the produced benefits, but nobody wants to deal with all the resulting gak.

GW customers deserve every bit of outrageous princing they get. 
   
Made in gb
Painting Within the Lines



Welwyn Garden City, Herts

 Korinov wrote:
One also has to wonder what "market expectations" are exactly.

Let's see.


http://investor.games-workshop.com/wp-content/uploads/2016/01/2015-16-Press-Statement.pdf

At this stage in the Company’s financial
year, the Company’s internal projections indicate that pre-tax profit for the year to 29 May 2016 is
unlikely to exceed £16 million.


So basically the market expectation would be about £16M profit, before this update - I'd guess "slightly" would cover £17-18M, but it's a guess.

   
Made in jp
[MOD]
Poster boy for the pointless reality TV star generation.






Somewhere in southern England.

Total War:Hammer is getting a lot of good press and seems to be genuinely a great game.
Given the pedigree of the Total War series that's not surprising.
It's all the more disappointing that GW canned WHFB the year before this potential big boost to recruitment came on stream.
I'll put that down to the tail end of the baleful Kirby era.

If 3/4s of your gin and tonic is tonic, you're doing it wrong.

We're not very big on official rules. Rules lead to people looking for loopholes. What's here is about it.

Forum posting guidelines, please learn them! You will be tested. 
   
Made in us
Fixture of Dakka





Japan

Noooo, what about GW going out of business soon!
But seriously i hope this will be finally a turn around in GW's ways, although they still need to address the high prices IMHO.

Squidbot;
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Made in gb
Battlefortress Driver with Krusha Wheel





Brum

 Jehan-reznor wrote:
Noooo, what about GW going out of business soon! .


Few people have ever said 'soon'

My PLog

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Made in ca
Bounding Assault Marine





Vancouver, BC, Canada

To my knowledge this would be the first time in 6 years the company had turned a profit at all. That would be an unambiguously good thing.

   
Made in us
Tormentor






St. Louis

 Weboflies wrote:
To my knowledge this would be the first time in 6 years the company had turned a profit at all. That would be an unambiguously good thing.

They've been turning profits consistently... forever. I don't think they've ever posted a loss over a full year.
   
Made in us
Posts with Authority






But...
But...
But what about the unemployed Cypriots?! (This is a test for old timers. This is only a test.)

I am going to hold on to a faint glimmer of hope that the success of Total War: Warhammer spurs a reemergence of Warhammer, perhaps from Forge World. (Hey, I'm trying to be optimistic here, please don't kill my puppy.)

The Auld Grump

Kilkrazy wrote:When I was a young boy all my wargames were narratively based because I played with my toy soldiers and vehicles without the use of any rules.

The reason I bought rules and became a real wargamer was because I wanted a properly thought out structure to govern the action instead of just making things up as I went along.
 
   
Made in jp
[MOD]
Poster boy for the pointless reality TV star generation.






Somewhere in southern England.

 Laughing Man wrote:
 Weboflies wrote:
To my knowledge this would be the first time in 6 years the company had turned a profit at all. That would be an unambiguously good thing.

They've been turning profits consistently... forever. I don't think they've ever posted a loss over a full year.


They have but it was about 10 years ago. I don't remember the exact year.

If 3/4s of your gin and tonic is tonic, you're doing it wrong.

We're not very big on official rules. Rules lead to people looking for loopholes. What's here is about it.

Forum posting guidelines, please learn them! You will be tested. 
   
Made in us
Posts with Authority






 Kilkrazy wrote:
 Laughing Man wrote:
 Weboflies wrote:
To my knowledge this would be the first time in 6 years the company had turned a profit at all. That would be an unambiguously good thing.

They've been turning profits consistently... forever. I don't think they've ever posted a loss over a full year.


They have but it was about 10 years ago. I don't remember the exact year.
Not losses, but steadily decreasing sales, offset by increased prices and cost cutting.

And one huge plummet in stock value, not all that long ago.

That said, I actually do hold out faith that Rountree may be able to undo some of the damage.

The Auld Grump

Kilkrazy wrote:When I was a young boy all my wargames were narratively based because I played with my toy soldiers and vehicles without the use of any rules.

The reason I bought rules and became a real wargamer was because I wanted a properly thought out structure to govern the action instead of just making things up as I went along.
 
   
Made in us
Dakka Veteran






Backwoods bunker USA

Yeah, it was always profitable, every year.

It's just that profit was getting smaller year over year.
   
Made in au
Long-Toothed Great Company Wolf Lord





So it sounds like they were saved by Total War.

What a surprise (sacarsm) they were underestimating the power of a licensed product that customers have been wanting for decades

Obviously have to wait for the report, but I will find it amusing in a sad way if they were saved from the poor sales of AoS by a product they didn't make licensed off the world they killed to make AoS. We'll have to wait and see.
   
Made in us
Longtime Dakkanaut




Tuscaloosa, AL

What will be interesting is their profit and revenue compared to last year without the licensing included. Royalties are supposed to be the icing on the cake, not the only reason you don't slowly starve to death. If they aren't growing their miniature and rulebook sales, it's still a downward spiral. What happens next year when you don't have a huge game like that to keep the profits up? And the year after? This is slightly optimistic news, especially compared to the dismal report right after 8th WHFB and 6th 40k dropped.

Roll Tide! Beat everyone!  
   
Made in gb
Servoarm Flailing Magos




We'll find out soon enough eh.

AllSeeingSkink wrote:
So it sounds like they were saved by Total War.

What a surprise (sacarsm) they were underestimating the power of a licensed product that customers have been wanting for decades

Obviously have to wait for the report, but I will find it amusing in a sad way if they were saved from the poor sales of AoS by a product they didn't make licensed off the world they killed to make AoS. We'll have to wait and see.


I don't know whether that would spark righteous schadenfreude or just sadness, to be honest.

Still, it's nice of them to openly admit licensing has saved their arse, neatly undercuts the handful of "deliberate internet contrarians" who've doubtless been gearing up for "Glorious AoS Saves Great Leader Games Workshop From Shame of Low Profit" gak stirring.

I need to acquire plastic Skavenslaves, can you help?
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-----
"The language of modern British politics is meant to sound benign. But words do not mean what they seem to mean. 'Reform' actually means 'cut' or 'end'. 'Flexibility' really means 'exploit'. 'Prudence' really means 'don't invest'. And 'efficient'? That means whatever you want it to mean, usually 'cut'. All really mean 'keep wages low for the masses, taxes low for the rich, profits high for the corporations, and accept the decline in public services and amenities this will cause'." - Robin McAlpine from Common Weal 
   
Made in jp
[MOD]
Poster boy for the pointless reality TV star generation.






Somewhere in southern England.

 KiloFiX wrote:
Yeah, it was always profitable, every year.

It's just that profit was getting smaller year over year.


They haven't always been profitable and profits have been increasing for a few years as sales declined. This is because the company has got more efficient.

Their Cost of Goods (cost of making things to sell) has gone down from about 25% of retail price to about 20%. This creates a situation in which you can sell less stuff and make more profit.

I mention these points because there is no use discussing the company's financial position if we are not clear about their financial history.


Automatically Appended Next Post:
 Toofast wrote:
What will be interesting is their profit and revenue compared to last year without the licensing included. Royalties are supposed to be the icing on the cake, not the only reason you don't slowly starve to death. If they aren't growing their miniature and rulebook sales, it's still a downward spiral. What happens next year when you don't have a huge game like that to keep the profits up? And the year after? This is slightly optimistic news, especially compared to the dismal report right after 8th WHFB and 6th 40k dropped.


They also will have been helped by the weakening of the GBP in foreign exchange markets.

I agree it's hard to see how they can licence the IP without having core games that make it popular. Perhaps GW can transition to a purely digital company, designing 3D models and writing scenarios for computer games. Where would that leave the rest of the company, though?

This message was edited 1 time. Last update was at 2016/06/07 07:41:47


If 3/4s of your gin and tonic is tonic, you're doing it wrong.

We're not very big on official rules. Rules lead to people looking for loopholes. What's here is about it.

Forum posting guidelines, please learn them! You will be tested. 
   
Made in ie
Junior Officer with Laspistol




Frostgrave

Total War is selling better than they were expecting? That says it all, really.
   
Made in gb
Painting Within the Lines



Welwyn Garden City, Herts

Here's the last 5 years' headline financials if I can find back further I will post them up too:


£ Millions £ Millions £ Millions £ Millions £ Millions
Income Statement 31 May '15 1 Jun '14 2 Jun '13 3 Jun '12 29 May '11
Revenue 119.13 123.5 134.6 131.01 123.05
Operating Profit / Loss 16.48 12.3 21.25 19.14 15.24
Net Interest 0.11 0.1 0.14 0.33 0.04
Pre tax Profit 16.59 12.4 21.39 19.47 15.29
Post tax Profit 12.26 8.01 16.32 14.71 11.24
Profit for the Period 12.26 8.01 16.32 14.71 11.24

Not the tidiest formatting but

   
Made in fi
Longtime Dakkanaut




They posted a loss of £2.1 million in 2007, report. This was when LOTR collapsed suddenly and they had very heavy cost structure which they began to cut.

They were operationally profitable that year (barely), but cuts caused big loss.

Licensing income has been relatively small potatoes in recent years - 1 to 2 million £ annually so interesting to see how much more it has produced.

Mr Vetock, give back my Multi-tracker! 
   
Made in ie
Junior Officer with Laspistol




Frostgrave

Total War: Warhammer has sold 642,364 copies so far @ about £50/copy (60EUR). That's £32m in revenue.
Assuming they get 5% as royalties, that's £1.6m - more licensing revenue in 2 weeks than they average annually.

It's potentially also enough to keep them in the black.

This message was edited 1 time. Last update was at 2016/06/07 09:19:51


 
   
Made in au
Long-Toothed Great Company Wolf Lord





Herzlos wrote:
Total War: Warhammer has sold 642,364 copies so far @ about £50/copy (60EUR). That's £32m in revenue.
Assuming they get 5% as royalties, that's £1.6m - more licensing revenue in 2 weeks than they average annually.

It's potentially also enough to keep them in the black.
Where did you get those figures?

As far as I'm aware, it's impossible to tell how many copies have been sold because not all sales channels report blow by blow sales.

The only figure I could find from googling was this...

Total War: Warhammer has sold more than half a million units since its release at 8am on Tuesday, setting a franchise record for the fastest selling Total War title on Steam


And that was within the first 3 days it was on sale. I also don't know if that was Steam sales only, as the game could be purchased through a lot of other channels.

This message was edited 1 time. Last update was at 2016/06/07 09:32:23


 
   
Made in ie
Junior Officer with Laspistol




Frostgrave

http://steamspy.com/app/364360

I assume it has to be activated on steam to be played, even if you bought a retail box.

Edit: I don't see any confirmation of that. So the steam sales might not be the entire picture. If that's the case, we can realistically double those numbers, at least.

This message was edited 2 times. Last update was at 2016/06/07 09:40:23


 
   
Made in gb
Battlefortress Driver with Krusha Wheel





Brum

Total War games have required Steam activation since Empire, as far as I know anyway.

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Made in gb
Snivelling Workbot





Herzlos wrote:
Total War: Warhammer has sold 642,364 copies so far @ about £50/copy (60EUR). That's £32m in revenue.
Assuming they get 5% as royalties, that's £1.6m - more licensing revenue in 2 weeks than they average annually.

It's potentially also enough to keep them in the black.


I assume by 'keep them in the black' you mean increase profits rather than actually making the difference between profit and loss?
   
Made in au
Long-Toothed Great Company Wolf Lord





Are those realistic estimates of Steam sales anyway? I don't really follow steamspy, but I thought it worked by polling a bunch of accounts and adding up what games people had, which would mean it wouldn't account for people like me who's games can't be seen by others.
   
Made in ie
Junior Officer with Laspistol




Frostgrave

I'm not sure. I think without TW or WHQ, they'd be making a loss (or negligable profit). We'll never get figures for WHQ though, but I suspect the royalties will be a significant proportion of the profits.

My prediction will be ~£4.5m profit, of which ~£2m is licensing.

This message was edited 1 time. Last update was at 2016/06/07 10:36:09


 
   
Made in gb
Painting Within the Lines



Welwyn Garden City, Herts

Herzlos wrote:
I'm not sure. I think without TW or WHQ, they'd be making a loss (or negligable profit). We'll never get figures for WHQ though, but I suspect the royalties will be a significant proportion of the profits.

My prediction will be ~£4.5m profit, of which ~£2m is licensing.


They have already said they are on track for c. £16M profit and have now announced that it will be "slightly" above that. My estimate is £17 - 18M profit.

   
 
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