We were expecting good news from Games Workshop and, today, we get it with their official statement.
The company has more than doubled its profits. They’ve gone from £3m in profit previous two quarters to £7.9m in the last two.
Successful license deals are partially to credit here. Money from royalties rose from £0.5m to £1.2m. That means people like Fantasy Flight Games, who have the Warhammer FRPG, are paying Games Workshop handsomely – although its hard to imagine that the third edition of Warhammer really made Games Workshop an extra £0.7m (that’s about $1.15m).
It’s worth noting that the group says the weak pound also played a part in the increase in profits. Simply put; it’s cheaper to buy British stuff and that’s exactly what lots of American gamers did. No wonder Games Workshop’s Chairman has moved to the States to chase business opportunities there.
Just when did Fantasy Flight gobble up old Games Workshop partner Sabertooth Games anyway?
The final pieces in the puzzle may be less good news to gamers. Games Workshop also told their share holders that the profit boost was due to cost cutting – less staff, stores with a lower rent and cheaper raw materials in their products. Games Workshop can reduce the cost of their raw materials in a few ways; they can buy more cheaply with better deals, they can hedge their funds better or, sadly, they can buy poorer quality materials.
Speaking of smart buying – take a look at Games Workshop’s share price.