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Video games Workshop‘s (LSE:GAW) share value is ripping greater proper now. At £181 per share, the FTSE 100 firm’s soared one other 12.5% on Thursday (20 November) after releasing first-half buying and selling numbers that trumped forecasts.
The tabletop gaming colossus is now up a whopping 36% since 1 January.
Video games Workshop’s one of many FTSE‘s best success tales — with capital positive aspects and dividends mixed, its shares have delivered a median annual return of 31.7% since 2015.
What can we anticipate subsequent from the area of interest retailer?
Estimates topped
In a quick market replace, Video games Workshop mentioned it expects “core income of not lower than £310m” at precise change charges for the six months to 30 November. That’s up from the £269.4m it generated in the identical 2024 interval.
In consequence, Video games Workshop mentioned half-year revenue earlier than tax “is estimated to be not lower than £135m.” That’s up from £126.8m beforehand.
Licensing income is tipped at £16m, down from £30.1m a yr earlier. Final yr’s outcomes have been boosted by the launch of the blockbuster Warhammer 40,000: House Marine 2 online game.
Crowning off one other robust buying and selling replace, the Nottingham-based firm introduced one other £1 per share dividend to be paid in January.
That takes whole dividends to this point this monetary yr to £3.25 per share. That’s up from £1.85 at this stage final yr.
Spectacular numbers
It’s no shock to this Video games Workshop investor that demand for its fantasy merchandise retains ripping greater. Merchandise like these in its Warhammer 40k universe are the business gold commonplace and command a loyal worldwide following.
Russell Pointon, analyst at Edison described first-half buying and selling as “spectacular… following the 2 previous years that included launches of recent editions of its principal mental properties.”
Whereas licensing revenues got here in as predicted, gross sales of core merchandise (like fashions, cube, books and paints) as soon as once more beat Metropolis estimates. However it’s not simply robust gross sales that appear to be powering Video games Workshop’s earnings.
Based on Pointon, the agency’s first-half revenue rise “implies enchancment within the core working margin versus H125.” He added that “it takes the achieved H126 revenue to only over 60% of our FY26 revenue estimate.”
What now?
So what can we anticipate subsequent from Video games Workshop? Whereas buying and selling has remained sturdy of late, additional success isn’t assured given robust shopper circumstances in lots of its areas.
On prime of this, it faces rising competitors from different corporations searching for a slice of the profitable fantasy gaming market.
But I’m optimistic it may ship a brand new part of explosive development, pushed by new product releases and an acceleration of licensing exercise. International enlargement continues and the agency has began work constructing a fourth manufacturing facility to maintain up with breakneck demand.
I’m particularly excited by the corporate’s TV and movie licensing cope with Amazon. This might might supercharge long-term core gross sales and ship gigantic revenues in its personal proper.
Video games Workshop’s share value has surged 4,160% since 2000. I believe there’s a number of scope for additional positive aspects, making it value severe consideration.
