Scent of a Gamer

From the computer to the tabletop, this is all about games. Updated each week-end.

Reality 1: Games Workshop 0

As a publicly-listed company, Games Workshop brings out an annual report, and an interim 6 month report. If you’re interested you can always read them on the company’s website.

Their six monthly update came out on Friday and the reading is not pretty. To summarise:

Op Profit has dropped by 30%
Revenue has dropped 11%
Earnings per share (eps) have dropped by 31%
Dividends have fallen by 100%

This is based on a comparison with the same period last year. At the same time revenues in my own backyard (Australia) have dropped by a fifth. This is hardly surprising given GW’s behaviour here and attitude towards the region (pay more! get less!).

Games Workshop have been trying very hard over the last few years to make themselves irrelevant to gamers in Australia. It looks like they are succeeding, and not just here.

Looking at the long-term chart for Games Workshop we see a company chronically unable to capitalise on and sustain its own success:

gwshares

They have had three peaks over the past 20 years, each one ending in a sharp decline in prices. Whatever they are doing, they are doing it wrong. What they have been doing is selling less product to fewer gamers at higher prices.  It’s going to take more than a price rise and a new Space Marine Codex to get out of this one. However there seems to be no recognition of this among decision makers at the company.

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This entry was posted on January 18, 2014 by in Industry and tagged , .
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