Sparks - Games Workshop Group

Games Workshop Group’s year-end (May 2025) trading update shows the company deliver a better-than-expected fourth quarter, notably in its core business, as the indicated licensing revenue and profit are broadly in with our prior estimate.

The company is indicating core revenue growth of not less than £560m, just over 1% above our prior estimate of £552m. The greater surprise is at the operating level, with core operating profit of not less than £210m versus our prior estimate of c £193m, indicating a much better margin of at least 37.5% versus our prior estimate of 35%.

It was an extraordinary year from a licensing perspective, with revenue of £50m and an operating profit of not less than £45m. Management has clearly indicated they are not expecting a similar performance in the coming year, which presents a modest headwind for growth given its high level of profitability.

It has been a great year, helped by the launch of the fourth edition of Age of Sigmar, following a strong prior year when the tenth edition of Warhammer 40K was released. All eyes will be on what is coming from a product perspective in the next financial year.