Games Workshop Share Discussion Threads

[nod] 03/10/2015 09:59

MONEY OBSERVEROctober 1, 2015 - 10:04am - Richard BeddardGAMES WORKSHOP (GAW)In full-year results for the year to June 2015, fantasy wargaming and modelling company Games Workshop reported revenue down 4 per cent. Adjusted profit fell 5 per cent.New chief executive Kevin Rountree said the fall in revenue and profit was due to adverse exchange rates and poor trading in Europe. The strong pound made exports from Nottingham, where the company makes its models, more expensive. About half of the fall in revenue was deemed 'non-core' by the company.In Europe, the company has closed its regional headquarters, removed middle management, centralised its trade sales teams at home, and continued rolling out the one-man store format, which involves shutting down larger stores and opening smaller ones carrying less stock and operating reduced opening hours.Rountree says that in the second half of the year the trade sales team, which sells to independent hobby stores, grew revenue very slightly in Europe. The company's own European stores are taking longer to adjust.Renewed impetus may also come from the newly relaunched Warhammer Fantasy game, 'Warhammer: Age of Sigmar'. The company is rebranding Games Workshop stores 'Warhammer' too.By cutting costs, Games Workshop has remained comfortably profitable. Return on capital in 2015 was 13 per cent, slightly above the six-year average. The company thinks modest growth will resume when the disruption from the restructuring abates and revenue from new stores it plans to open kicks in.A share price of 565p values the enterprise at £230 million, about 16 times adjusted profit. The earnings yield is 6 per cent.

[mozy123] 25/9/2015 12:10

Its all gravy because the licensing doesnt have any cost. Free cash flow for divis

[essentialinvestor] 24/9/2015 10:54

So you guys see the licensing income for GAW as an increasing factor
for group profitability?.

Must admit my knowledge of video games is next to none,
if that is what they are still even called )


EURO/GBP rate more helpful than over the early Summer.

[essentialinvestor] 24/9/2015 07:20

My own share price target price is £7 + for 2016-2017.

However it's the very high income pay out which is the main attraction
in my holding GAW.

[mozy123] 23/9/2015 19:28

New blood bowl game for xbox and play station should also help.

[essentialinvestor] 23/9/2015 13:56

Good to see the CEO adding shares last month plus reinvest the dividend.
Lower commodity prices hopefully margin supportive in their manufacturing operations.
Ruffer now have a 10% holding I notice.
Age of Sigmar may provide an added catalyst for future revenue as mentioned.

[trident5] 21/9/2015 23:26

If you want to spend an evening reading about GAW - you might find this article and the many responses interesting:

[...]

[nod] 20/9/2015 21:49

The strength of the USD should offset the continued weakness of the EUR. If US sales have continued to grow then there should be a net gain.

[nod] 20/9/2015 21:36

We should get an IMS trading update soon.

[nod] 18/9/2015 06:17

Excellent publicity for Pixel Toys' 40k game and is bound to help their sales. Who wouldn't want to try it on their new iPhone 6 after watching the demo?Pixel Toys is a UK indie developer. The CEO, Andy Wafer, this week called the 3D Touch, A9 chip and iOS 9 a game changer.

[mozy123] 17/9/2015 17:00

looks good!

[woozle1] 17/9/2015 11:14

Re the Apple launch, no need to watch the whole thing and just go to 1hr37m.
W

[woozle1] 17/9/2015 10:59

New WH40k game previewed at the new Apple 6s launch .. Amazing publicity and worth the watch!
W

[woozle1] 23/8/2015 17:38

My son tells that Age of Sigmar outselling 40k at his local store. Could explain why the CEO bought stock recently.
W

[nod] 17/8/2015 22:46

Yes they do. It must be difficult to reliably validate sales of mobile and online games and the online games are a very low price compared to console and PC games. The revenue from licensees has been quite low in recent years at 1 million or so, but has been over 3 million in previous years. This includes other games and not just software.Here's how the company explains the revenue:"Royalty income is recognised in the income statement when it can be reliably measured by reference to the underlying licensee performance, after allowing for expected returns and price protection claims, as notified to the Group by the licensee and following validation of the amounts receivable by the Group. Cash received as guarantees and advances are deferred on balance sheet whilst it is considered probable that future royalty earnings will at least equal the amounts received. Such amounts are recognised in the income statement at the point at which they are earned as royalties. In the event that it is no longer considered probable that future royalty earnings will at least equal the guarantees and advances received, the guarantee and advance payments are taken to the income statement on a straight line basis over the remaining term of the licence agreement.

[mozy123] 17/8/2015 21:18

Do they not get royalties?

[nod] 17/8/2015 20:58

GAW licences the IP to games developers (heaps of them) but doesn't benefit from the success of any game - other than the best games will draw some new customers into the models and in-store table-top gaming.

[mozy123] 17/8/2015 19:26

the footage of the up coming total war warhammer game look amazing - going to be a hit that one!

[woozle1] 17/8/2015 17:11

my son, Fantasy was heavily biased towards existing players with large armies, which defo deterred to entrants to the game. Also simplifying the rules will make it more accessible.

I also think it's time for the company to revisit its attitude to publicity and marketing. The internet and the proliferation of digital channels has made it much easier to segment audiences and to be more targeted in advertising.

Hopefully, TK moving on will facilitate changes to drive the business forward. The cost base has been paired to the bone and it's time for the company to start driving revenue growth that's driven by volume and not price increases.
W

[woozle1] 17/8/2015 17:06

The jury is still out on the Age of Sigmar but my gut tells me it will be OK. WH fans have all been heavily resistant to change. When the company replaced the metal with plastic there was a big outcry. Talking to

[nod] 13/8/2015 23:41

Encouraging that Kevin Rountree is putting up another 22,900 pounds of his money to buy shares. A vote of confidence that the changes are good for the share price

[nod] 06/8/2015 22:03

20p ex-divi today. Only a few thousand shares sold.