Amazon Warhammer deal spurs Games Workshop to record £170m profit
Warhammer-maker Games Workshop saw bumper profits this morning as it benefitted from a major December deal with Amazon to turn its popular wargame into a TV series.
Profits rose from £156m to £170.6m for the year ending in May, which the firm said was the highest it had “generated since flotation 29 years ago.”
Revenues, meanwhile, soared from £414m to £470m, up 13 per cent year-on-year and helping the company increase its annual dividend by 76 per cent, with the dividend payout at 415p, up from 235p.
Kevin Rountree, CEO of Games Workshop said: “We finished the year having delivered eight consecutive years of group sales and profit growth – in the period we reported the highest level of sales and the most profit we have generated since flotation 29 years ago. Our international team has been sensational again, thanks to you all.”
In December, the Nottingham headquartered firm signed a blockbuster deal with Amazon that will see its figurines take to the big screen, prompting shares to skyrocket.
Under the deal, Games Workshop have also granted merchandising rights to Amazon.
After a relatively slow start to the year, which saw the figurine maker miss its sales targets and warn of the impacts of the cost-of-living crisis on consumer spending, the group has felt the lift of its collaboration with Amazon.
It said today that inflation and higher interest rates were still an “ongoing concern,” but was buoyed by the release of a range of new miniatures, including a ‘Battle of Osgiliath’ box set based on the Lord of the Rings franchise and the 10th edition of its flagship Warhammer 40,000 wargame.
Russell Pointon, director of consumer at Edison Group, said: “The increasing global appeal of Games Workshop’s products despite the challenging macroeconomic backdrop is demonstrated in its year-end May results, with an eighth consecutive year of sales and profit growth, and the best since its flotation 29 years ago.”
“The company’s proposed rights deal with Amazon, as well as the strong FY23 results, have helped to deliver a good increase in its share price and is likely to be positive for further leveraging Games Workshop’s IP if the deal is finalised.”