Investing.com -- Games Workshop (LON:GAW) on Tuesday reported a strong set of results for the first half of its financial year, posting figures that not only met expectations but, in some areas, modestly exceeded them.
Analysts at Jefferies said that the company’s results in what was anticipated to be a challenging period, with core revenue reaching £269 million, surpassing the guidance of about £260 million.
Licensing revenue stood at £30 million, in line with previous projections, while profit before tax came in at £126 million, above the guidance of around £120 million.
This impressive growth in the Core business—up 16% year-on-year—deserves special attention, particularly given the formidable comparative figure of the prior year, which was buoyed by a 40,000-unit benchmark.
Despite these challenges, Games Workshop’s Core business flourished, demonstrating the enduring appeal and growth potential of its product range.
Analysts attribute part of this success to a "licensing halo effect," as excitement around media and licensing ventures has not only bolstered revenue but also driven increased footfall into retail stores during the period.
The Licensing line itself saw a substantial uplift, with revenue soaring from £12 million in the previous year to £30 million, largely due to the contribution of Space Marine 2.
This title has clearly resonated with audiences, reaffirming the strength of Games Workshop’s intellectual property in the interactive entertainment space.
This reinforces the company’s broader strategy of leveraging its brand across multiple mediums, creating a virtuous cycle of engagement that benefits all aspects of the business.
Additionally, the company noted a positive outlook, despite the potential headwind of US tariffs. Such resilience, coupled with expanding opportunities in media and licensing, positions Games Workshop for continued success.
Jefferies analysts said that Games Workshop’s strong first half results stand out even more in the context of a significant share price rally over the past six months, which has seen a 25% increase.
Despite these gains, the results are likely to fuel further upward revisions in consensus PBT forecasts, underscoring the company’s potential to maintain its growth trajectory.