Games Workshop profits surge amid video games and Amazon TV deals

Games Workshop has cheered joining the FTSE 100 with its best ever half-year performance, as interim profit soared by a third.

Best known for its Warhammer game series, the retailer made its once-unlikely debut on London’s premier stock index late last year.

Profit reached £126.8 million for the six months to December 1, while revenue was just under £300 million, a jump of one-fifth compared to the same period last year.

The results mark the period in which Games Workshop completed its ascent to the FTSE 100, just under 50 years after founders Ian Livingstone, Steve Jackson and John Peake set up the company in a Shepherd’s Bush flat in 1975.

It means the retailer – which still sells its collectable cards and board games – joined the likes of Shell, HSBC and Sainsbury’s on the blue-chip stock index on December 23.

A fast-growing chunk of its new cash is coming from video game adaptations.

Two new games around the Warhammer 40,000 sci-fi universe launched in the second part of last year, making up the bulk of a 140% increase in licensing revenue.

In December, Games Workshop also struck a deal with Amazon to allow it to adapt the product for film and television.

While it did not give figures on the deal, chief executive Kevin Rowntree said: “We own what we believe is some of the best under-exploited intellectual property globally.”

The proceeds from the Amazon deal were not included in these interim results as it was struck after December 1.

The anticipation around the launches also helped get more customers through the door, with a new record for core sales, which rose 12%.

“It’s fair to say our results were helped by some of the excitement around media and licensing product launches,” Mr Rowntree added.

Games Workshop made short mention of the October Budget, which saw a rise in the national living wage and in employment taxes hit most businesses across the UK.

It said: “We, however, don’t expect any material impact on our financial performance for the year to May 2025 following the UK’s autumn Budget 2024… as we already pay all of our UK staff, as a minimum, close to the new level.”

Mr Rowntree said: “We are awaiting confirmation, like everyone else, on the timing and magnitude of any US tariffs before we can confirm the impact on our net cash generation and other financial metrics.

“We are also facing constant cost inflation which we will continue to actively manage as part of the day job.

“I’m delighted to report our best first half-year performance.

“A huge thank-you to our staff, customers, trade accounts and broader stakeholders for their ongoing support.”