Things are continuing to look up for Games Workshop as they predict higher profits for their first half of 2016 over the same (Age of Sigmar) period in 2015.
The manufacturer from Nottingham, just released this trading update over the weekend:
Source Games Workshop:
Games Workshop Group PLC announces that sales and profits in the six months to 27 November 2016 are significantly ahead of those in the first half of the prior year and ahead of the Board’s original expectations. Preliminary estimates indicate an operating profit of c.£13 million for the period.
Over the first half we have seen strong sales and profit growth in constant currency terms. Sales and profits have further benefitted from the favourable impact of a weaker pound. Royalty income is also expected to be ahead of the prior year.
However, the Board is aware that it is still early in the 2017 financial year and that there are a number of challenging trading periods ahead.
We will be announcing our half-yearly report for the six months to 27 November 2016 on 10 January 2017.
Two things to note here folks they expect profits to be up from the same period last year (the Summer of Sigmar Debut), and Royalty income is also expected to be ahead form the year prior.
Now I am not a financial analyst but I can spot a trend or two, and it very curious to me at least when they say Royalties income will be up, having gone their separate ways with giant Fantasy Flight Games earlier in the year.
Does Royalties in this context mean, license revenue as well? I am unclear how that works in England at this time, but we’ve seen some pretty exciting video game releases this year, that may have made up the difference if we are comparing apples to apples here.
As far as profits being up over the previous year I think we can all agree the middle to ladder part of 2015 was a dark time for the hobby, but the company as a whole has started to rise like the proverbial Phoenix, hopefully to take flight again in 2017!
I for well welcome our new hobby over lords in 2017, and I hope you do as well!
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About the Author: Rob Baer
