Sparks - Games Workshop Group

Games Workshop Group’s H125 trading update is nothing short of outstanding with year-on-year revenue growth of not less than 17% versus our current FY25 estimate of 2% growth. The core business continues to generate strong consistent revenue growth of not less than 10%, as it benefited from the launch of the fourth edition of Age of Sigmar. The real surprise comes from licensing revenue, which has increased by an astonishing c 150% y-o-y to not less than £30m, way ahead of our prior FY25 estimate of £25m. The strong growth in licensing has a significant effect on profitability as it is a very profitable revenue stream. As a result, the company’s H125 PBT of not less than £120m represents over 60% of our current FY25 forecast.

The company’s growth rate is testimony to its ability to evolve its intellectual property and engage with its customers.