Games Workshop Share Discussion Threads

[nod] 06/10/2016 18:35

GAW does not usually give a trading update at this time of the year, it's usually in December or January. I'm guessing that trading is significantly up, although they don't use the S word.

[nod] 06/10/2016 17:53

As expected, benefit from lower pound. I wonder what the % increase in sales has been.TRADING UPDATEGames Workshop Group PLC announces that sales and profits in the four months to 2 October 2016 are ahead of the Board's original expectations.Over the four month period of the year to date we have seen sales growth in constant currency terms. Sales have further benefitted from the favourable impact of a weaker pound. These have resulted in growth in reported sales for the period.

[woozle1] 06/10/2016 16:50

Has the worm turned?

[mozy123] 06/10/2016 15:37

Age of sigmar looks to be driving sales! Short and brief statement as always.

[woozle1] 03/10/2016 11:51

Total War Warhammer did better and was the fastest selling Total War franchise. The real growth for the IP is in the Far East and maybe they need to step up the focus there.
W

[nod] 02/10/2016 23:22

It's a real pity that Warhammer Online did not get the investment needed. EA had acquired developer Mythic. Within a few months of launch WAR had 300,000 subscribers by early 2009. My son and his friends loved the game. Unfortunately EA then had a us$ 1 Billion loss. EA cut back on everything in 2009 including WAR, which was eventually shut down at the of 2013.A movie could be epic with the right Director, such as Peter Jackson or James Cameron. Both live here in New Zealand so I may get a bit part.

[woozle1] 02/10/2016 17:36

There's a huge amount of IP to be exploited here. Just as DC Comics have exploited their's. My son tells that Age of Sigmar seems to have rekindled interest in the Hobby. I'd expect there to be films. World of Warcraft flopped at the box offices in western countries but did rather well in Asia.
W

[nod] 01/10/2016 02:38

I would agree with most of this MF article except perhaps the conclusion. The shares are currently cheap because licensing is lumpy. It has always been lumpy - a point I have made on this board for ten years. If license revenues fall next year that is expected and already in the price.Britain was a world leader in video games and still provides the talent to many US companies. What a shame British software developers can't get the financial backing anymore.The article raises some valid points about the core business "spluttering" due to poorly implemented changes.MF article follows:Video gaming is big business. The industry is valued at around $100bn right now and with the rise of mobile gaming and the widening of the demographics that are playing, it only looks set to expand.Unfortunately for us, most video game studios tend to list in America, but there are a few small-cap shares with direct exposure to this gargantuan and growing industry, one of which I believe could transform your portfolio. From tabletop to desktopGames Workshop (LSE: GAW) is famous for its Warhammer and Lord of the Rings tabletop war-games. These games have rich backgrounds and gamers are as invested in experiencing the game worlds as they are in playing the game itself."The history behind these fictional worlds has been built up since 1975. There are literally hundreds of novels and thousands of short stories written about the universe. One of those novels, A Thousand Sons by Graham McNeil, even hit the New York Times Best Sellers List. The rich tapestry created by this library of fiction isn't easily replicated and the resultant fictional worlds are the company's greatest assets. Gaming studios are often attracted by the detailed lore and established customer base, and pay Games Workshop handsomely to take advantage of both.But the company's core business of selling models to hobbyists is spluttering, largely due to poorly received rule changes and aggressive price hikes. Sales have fallen from a peak of £134.6m in 2013 to £118m last year. This took an even greater toll on core operating profit, which fell 27% last year, but a mammoth jump in video game licensing profit from £1.5m to £5.9m kept operating profits level.Unfortunately, with the core business struggling and licensing income depending on the success of outside influences, Games Workshop's prospects are unclear right now.Trading at only 12.4 times last year's earnings, the shares may appear cheap, but if the lumpy licensing income was to return to 2015's level, operating profit could drop from £16.9m to around £12.5m, with the share price likely to follow.Therefore, I recommend waiting on the sidelines unless the core business turns around.http://www.fool.co.uk/investing/2016/09/28/are-these-uk-small-caps-the-best-ways-to-play-the-video-gaming-boom/

[nod] 23/9/2016 18:55

Annual Report page 8"We piloted the following initiatives in the year; I will update you further in 2016/17: Asia After overcoming the burden of paper work and complexity of opening businesses in Asia we now have four new sales territory managers in Asia; in Singapore, Hong Kong, Japan and Malaysia in addition to our existing business in China. They will grow Games Workshop profitably by opening stockist accounts and our own stores.

[nod] 23/9/2016 18:34

GAW has a big network of independent retailers. If there is a market in a country then there will be independent stores. The nearest to store to me has always been an indie.From the annual report:We seek out our customers all over the world. We believe that our customers carry our Hobby gene and to find them we apply our tried and tested approach of recruiting customers in our own stores, by offering a fantastic customer experience. Our retail business is supported by our own mail order store (it has the full range of our product) and our independent stockist accounts and trade outlets across the world. The independent accounts do a great job supporting our customers in parts of the world where we either have not opened one of our stores or where it is not commercially viable for us to have one of our stores. We will always have more independent accounts than our own stores. Our strategy is to grow our business through geographic spread growing all of the three complementary channels.

[mozy123] 23/9/2016 16:28

fair points but i dont buy it. there must be 700mil middle class people in those geographies, yet the firm has only a few stores there.

[woozle1] 23/9/2016 16:09

You need a large middle class to afford this product and, therefore, not convinced of demand in BRICs, with the exception of China where fantasy products are v popular. World of Warcraft grossed a tonne of money there but nowhere else. That said, the problem with China is IP theft and alibaba.
W

[nod] 22/9/2016 20:49

I don't think the BRICs are our market yet, other than the potential in China. GAW has just opened an office in Hong Kong and its own store. It was previously represented by a franchise. China has a very large and growing wealthy population. 20% of the population where I live is made up of such Chinese. Despite wealth they are very thrifty spenders, many having been brought up this way. They buy heaps of major assets like luxury cars and property for themselves but many don't spend much on their kids clothes. It's a culture that has grown up on fakes sold on alibaba, so despite their wealth most will buy a fake adidas Messi shirt for the boy rather than a real one.In Brazil, Russia and India wealth is very narrowly held. India has potential over the next 10 years but is corrupt and bureaucratic. They can all buy online at the GAW store.

[mozy123] 22/9/2016 13:26

Really like this firm, used to play 40k when I was a lad. I do worry about the strategy. There are millions of kids internationally that do not have access. The bric nations should be our biggest markets not uk europe and the US

[woozle1] 22/9/2016 12:57

Agreed. Top line has been flat/down for too long. My son who plays at GW Kingston says it's busy and that Age of Sigmar seems to be attracting news kids as it's easier to play and you don't need a large army. I have a large position and although the share price has been range bound, the 10% DY (if you include the extras) is paying for school fees and will hopefully help finance my retirement!

[nod] 17/9/2016 23:17

We could see good share price growth in the last few months of 2016. You would have to be nimble and quick though, especially in early December when GAW releases a trading update. Contrary to last year GAW will have benefited from a weaker pound. Last December they wrote:"However, the adverse impact of a stronger pound will result in a small decline in reported sales for the period."Which caused a decline in share price I haven't traded GAW this year but have retained a modest holding. I usually keep some holdings in stock I trade as it keeps me focused on the news and is a hedge against my trades.GAW does look to be well-placed for growth again but I would like to see an increase in sales to support that.

[woozle1] 17/9/2016 21:14

GAW just started advertising on TV for hxxp://www.warhammer40klegends.com/. The last time the company did this via Lord of the Rings, they got plenty of growth. If history repeats itself .... £10 is a distinct possibility as the cost base has paired right back and profits will take off. It's been a while since I've been this positive. I should add that I've been in these for over 10 years and always thought that growth was around the corner. But in the absence of growth I've been clipping a 10% DY.

W

[dazzaa] 17/9/2016 20:55

Yes just read that after I posted I would have thought the share price would have gone north after.I would like to top up so now could be the time if the MM's don't destroy my intentions with a huge spread.

[nod] 17/9/2016 20:25

Aberforth Partners has invested quite significantly recently, over 8 million pounds, adding over 1.6 million shares to its holding. Now over 11%.

[dazzaa] 17/9/2016 20:20

Thanks for that, I agree its a resilient share and provides prodigious dividends that are not there to flatter just to return non core surplus if only other companies took a similar stance if you know any let me know.

[nod] 13/9/2016 22:26

It's a small company with a very niche product range - it has been so for 40 years. It doesn't take much news or rumour to change sentiment. The change of store format and locations have been costly but that should all be behind them now. The core business remains sound and cash generative. Focus has been on the USA growth and could also focus more on the affluent Chinese market. It has been a good trading share with the potential to pocket 50% once a year without having to work.

[dazzaa] 12/9/2016 21:42

I must admit the share price jumps around it seems, almost at a whim why? apart MM being sods.

[nod] 05/9/2016 07:54

On Friday September 2nd we see the relaunch of White Dwarf magazine. First released in 1977, it's been the lifeblood Games Workshop-related news for nearly 40 years. In recent years, it's been a weekly periodical. Now, however, White Dwarf is to return to a monthly release schedule. Once again the numbers are to be reset, so for the third time in 39 years, gamers can pick up White Dwarf issue 1.Branded as "The Ultimate Warhammer Magazine," this debut issue come with a free miniature (a Slaughterpriest) and comes in at a whopping 156 pages. The front cover promises rules and support for a whole host of GW products and looks to be harking back to the halcyon days of the magazine. Columns include battle reports, army of the month, and the slightly worrying "Reader's models."https://geekdad.com/2016/09/best-five-white-dwarf/

[nod] 21/8/2016 04:49

Hong Kong (HKSAR) - Games Workshop announced today (August 19) that it has opened its own retail store with an office in Hong Kong, as part of the Nottingham-headquartered hobby miniature maker's plan to boost its branding in the city. Games Workshop has over 30 years of experience designing and selling some of the most famous hobby miniatures in the world for collection and for strategy battle games, which are played on a large board with dice and rulers. The Games Workshop Hong Kong Ltd Sales Manager, Mr Ismail Sekkate, said that it was a timely move for the company to take a step forward in opening its own retail outlet, after years of successful partnership with distributors in Hong Kong.

[nehpets81] 02/8/2016 11:36

I don't think they have declared a divi yet.