Here’s how Games Workshop achieved record profits and stock prices, rewarded employees with bonuses, and unveiled ambitious expansion plans.
Get ready for a rollercoaster ride through the world of Warhammer, where record profits, employee perks, and expansion dreams await.
Games Workshop Record Year: Stock Prices, Profits, Bonuses, & Big Plans for the Future
Find out more about Games Workshop’s financial success by jumping to any of the sections below.
- Financial Triumphs of Games Workshop
- Employee Benefits and Bonuses
- Business Operations and Expansion
- Market Impact and Consumer Demand
- Investor Insights
Financial Triumphs of Games Workshop
Record Profits in 2023-24
When it comes to raking in profits, Games Workshop is on a roll, or should we say, a strategic advance. This past year, the UK-based firm has outdone itself yet again, posting pre-tax profits of a staggering $254 million (£200 million). That’s a lot of tiny plastic soldiers marching into the coffers, bolstered by tons of licensing deals.
Revenue Growth and New Editions
The catalyst for this financial feat? The launch of Warhammer 40k 10th edition. Hobbyists have flocked to stores and online platforms to get their hands on the latest models and rulebooks (despite there not always being the most of everything).
The 10th edition has been particularly well-received and praised for its streamlined rules that make it easier for new players to dive into the grimdark future while still offering depth and challenge for the veterans.
And it’s not just the core products flying off the shelves. Licensing income has seen a healthy boost, too, contributing an additional $38 million (£30 million) to the overall revenue. This includes everything from video games to apparel, proving that the Warhammer brand is as versatile as it is popular.
Licensing Income Surge
Games Workshop’s financial success isn’t solely based on new products and licensing deals. The company has most of its manufacturing done in-house. This control over the supply chain means they can scale production up or down with agility.
While they make their own product and can control the supply chain, they have had some serious issues with forecasting. If they can get that down, their profits will soar even more, and more people will get the products they want.
But wait, there’s more! Games Workshop has submitted plans to build a new factory, a massive 62,000-square-foot facility. This new factory is expected to further bolster their production, ensuring that every Space Marine, Ork, and Eldar is ready for battle.
However, all this success doesn’t come without some costs. In May, the company announced a 3-5% price hike across its products (a pretty standard increase they do every year). While this might make some hobbyists grimace, they have done this basically every year.
If you want to see the full list of increases for 2024, we have it here.
Employee Benefits and Bonuses
Profit-Sharing and Bonuses
At Games Workshop, it’s not just the higher-ups who are raking in the rewards. The company’s employees are also feeling the love, thanks to some seriously generous profit-sharing schemes and bonuses. In a world where employee satisfaction can make or break a company, Games Workshop is doing quite well.
This year, the company announced a whopping $23 million (£18 million) in profit-sharing bonuses. And here’s the kicker – this isn’t some performance-based trickle-down. Every single employee gets an equal share, regardless of their position. From the CEO to the newest recruit in the warehouse, everyone’s pocketing a neat bonus.
Recruitment and Employee Culture
But the perks don’t stop at cash bonuses. Games Workshop’s recruitment strategy places a strong emphasis on employee culture. They’re looking for folks who are not only skilled but also passionate about the Warhammer universe.
The company describes its workforce as “unique and often quirky,” and they wear that badge with pride. Whether it’s designing new miniatures, crafting intricate paint jobs, or strategizing the next big marketing push, Games Workshop employees bring a level of enthusiasm and dedication that’s truly inspiring.
However, Games Workshop isn’t without its quirks when it comes to recruitment. The company doesn’t advertise salaries on its job postings, which might seem odd at first. But there’s a method to this madness.
They want applicants who are genuinely passionate about the job, not just chasing a paycheck. It’s a bold move, but one that seems to pay off, judging by the company’s vibrant and dedicated workforce.
Discounts and Perks for Staff
And let’s not forget about the in-store discounts. Employees enjoy up to 50% off on Games Workshop stock products. For someone who loves building and painting miniatures, this is like a dream come true. It’s no wonder the staff is always buzzing with excitement – they’re literally surrounded by the things they love.
In addition to the profit-sharing scheme, Games Workshop is committed to fair pay and transparency. They aim to reward their staff for the value they contribute, ensuring everyone feels valued and appreciated. This approach has helped the company build a loyal and motivated team ready to tackle the challenges of the miniature wargaming world.
Business Operations & Expansion
Control Over Supply Chain
In the realm of tabletop gaming, Games Workshop reigns supreme, not just for its incredible products but also for its business operations and expansion plans. If you’ve ever wondered how this company manages to keep up with the insatiable demand for its miniatures, the answer lies in its meticulous control over the supply chain and forward-thinking expansion strategies.
While they have issues with forecasting (how much of each release people will want to buy), they do make a ton of products throughout the year. Games Workshop’s secret weapon is its in-house production.
Unlike many companies that outsource their manufacturing, Games Workshop keeps most of its production within its own walls. This strategy gives them unparalleled control over quality and production speed. Whether it’s a new batch of Space Marines or the latest terrain pieces, they can ramp up production swiftly to meet the market’s demands.
However, this logistical masterpiece has not been without frustrating delays since the release of 10th Edition.
New Factory Plans
Games Workshop is also expanding its production capabilities with plans for a new factory. This isn’t just any factory – we’re talking about a 60,000+ square-foot behemoth dedicated to churning out miniatures at an even greater scale.
This new facility will further solidify Games Workshop’s ability to meet global demand and explore new product lines. It’s an ambitious move, but if anyone can pull it off, it’s these folks.
Recent Price Hikes
Now, let’s talk money. In May, the company announced a 3-5% price hike across its products. While some players might grumble about paying a bit more for their beloved miniatures, this price adjustment is a strategic decision to maintain the high standards that Games Workshop is known for.
Rising production costs and market conditions necessitate such measures, but there is an argument to be made that they are outpacing inflation. Either way, they get to set the prices, and they are definitely expanding.
The price hike isn’t just about covering costs. It’s also an investment in the future. By ensuring they have the resources to innovate and expand, Games Workshop can continue to produce top-notch miniatures and game materials that hobbyists have come to expect. Plus, with the new factory on the horizon, they may just need the funds.
Games Workshop’s expansion isn’t limited to physical production. The company is also looking to enhance its digital footprint. From updating their website to improving online sales channels, they are making it easier than ever for customers to browse, buy, and enjoy their products.
The digital strategy also includes expanding its presence in the video game industry, leveraging its rich IP to create engaging gaming experiences that complement its tabletop offerings.
Market Impact & Consumer Demand
High Demand for Warhammer Products
The miniature wargaming community is buzzing, and at the center of it all is Games Workshop. The company’s products, particularly from the Warhammer 40k and Age of Sigmar lines, are in high demand. But what exactly drives this insatiable thirst for tiny warriors and elaborate battlefields?
The launch of Warhammer 40k 10th edition is a significant factor. This edition has been a hit, offering a streamlined and engaging experience for new players while providing enough complexity to keep veterans hooked.
The result? Record sales and a surge in player engagement. Players can’t get enough of the new rules, models, and lore, leading to packed stores and bustling online forums.
But it’s not just about the latest edition. Games Workshop has built a reputation for high-quality miniatures and rich, immersive lore. Every new release, whether it’s a new faction or an update to an existing one, is met with eager anticipation.
The intricate designs and detailed backstories create a compelling product that transcends the game itself, attracting collectors, painters, and hobbyists alike.
Inventory Challenges and Solutions
However, this high demand presents its own challenges. Retailers often struggle to keep up with the rush (not really through fault of their own; they get allocated), especially during major releases. It’s not uncommon for new models to sell out within hours, leaving some hobbyists frustrated.
Games Workshop has acknowledged these inventory issues and is working to improve its distribution network. The new factory plans are part of this strategy, aiming to increase production capacity and reduce shortages.
The Amazon Deal and Its Effects
Then there’s the Amazon deal, a game-changer that has put Warhammer and Games Workshop in the stock spotlight like never before. With former Superman star Henry Cavill attached, excitement is through the roof.
This partnership opens the door to a whole new audience, many of whom might be discovering Warhammer for the first time. It’s a brilliant move that leverages the power of mainstream media to boost brand visibility and attract new players.
Games Workshop’s success isn’t just luck; it’s a result of understanding and responding to market demands. They’ve mastered the art of creating a product that resonates deeply with its audience, ensuring that each release feels like a must-have.
This approach keeps existing hobbyists and fans engaged and continuously draws in new ones, fostering a vibrant and growing community.
Investor Insights
Shareholder Dividends and Returns
For those with an eye on the stock market, Games Workshop is a name that commands respect. This miniature wargaming giant has consistently delivered strong returns to its investors, making it a standout in the entertainment and hobby sectors. But what makes Games Workshop such a solid investment?
Firstly, let’s talk dividends. Games Workshop is known for its generous dividend payouts. This year alone, the company has declared and paid out $175 million (£138 million) in dividends, equating to $5.35 (£4.20) per share.
These payouts are a clear indicator of the company’s robust financial health and commitment to rewarding its shareholders. In a market where dividends can be a rare treat, Games Workshop’s consistency is a breath of fresh air.
Moreover, the company’s shares have shown impressive growth. Following the latest profit announcement, shares rose by approximately 6%, sitting around $128 at the time of writing. This uptick reflects investor confidence in Games Workshop’s ability to sustain and grow its revenue streams. It’s not just about the numbers; it’s about the company’s proven track record of performance.
Games Workshop Stock Performance and Market Position
Games Workshop’s financial strategy is another reason for investor optimism. The company operates with a largely debt-free balance sheet, a rarity in today’s corporate world. This financial prudence provides a solid foundation, allowing them to reinvest profits into expanding operations, improving product lines, and exploring new markets without the burden of debt.
Additionally, Games Workshop’s market position is bolstered by its unique business model. Owning most of its supply chain gives the company an edge in managing production costs and ensuring quality control. This vertical integration means they can quickly adapt to market demands, whether it’s scaling up production for a hot new release or maintaining a steady flow of beloved classics.
The company’s forward-looking approach also bodes well for the future. With plans for a new factory and ongoing efforts to expand their digital footprint, the company is not just resting on its laurels. They’re actively seeking ways to enhance their production capabilities and reach a broader audience. This kind of strategic growth is what keeps investors excited and engaged, along with the Games Workshop stock price.
GW is a titan in the miniature wargaming world, achieving remarkable success through a blend of strategic business operations, passionate employee culture, and relentless market impact. With record-breaking profits, stock price generous employee benefits, and robust expansion plans, Games Workshop continues to set industry standards.
What do you think about another year of record profits and stock price for Games Workshop?
About the Author: Rob Baer
Rob Baer
Job Title: Managing Editor
Founded Spikey Bits in 2009
Socials: Rob Baer on Facebook and @catdaddymbg on X
About Rob Baer: Founder, Publisher, & Managing Editor of Spikey Bits, the leading tabletop gaming news website focused on the hobby side of wargaming and miniatures. Rob has won many Warhammer 40k Tournaments over the years, including the Adepticon Team Tournament and American Team Tournaments, and is on a first-name basis with almost every major company in the space.
He’s all gaming all the time. With over 30 years of experience in retail and distribution, Rob knows all the products and exactly which ones are the best. He advocates for gaming stores and manufacturers in these difficult times, always looking for the next big thing to feature for the miniatures hobby, helping everyone to provide the value consumers want.
While he’s played every edition of Warhammer 40k and Warhammer Fantasy (since 5th Edition) and has been hobbying on miniatures since the 1908s, Titans of all sizes will always be his favorite! It’s even rumored that his hobby vault rivals the Solemnance Galleries, containing rulebooks filled with lore from editions long past, ancient packs of black-bordered Magic Cards, and models made of both pewter and resin.
