Key Takeaways:
Games Workshop Group PLC (LSE:GAW) shares rose over 3 percent after forecasting core revenue would grow more than 10 percent to at least £625 million for the fiscal year.
The Warhammer maker’s profit forecast of at least £265 million comes in ahead of market expectations of £251.1 million, according to LSEG data. The positive investor reaction sent the stock to 19,710p in early Friday trading.
The company’s trading update for the 52 weeks ending May 31 showed robust demand for its core products, though this was partially offset by a slump in its licensing division.
The strong performance in its core miniatures business, which has seen revenue more than double from £269.7 million in fiscal 2020, is offsetting a sharp drop in licensing income. The company, which did not provide a reason for the licensing decline, expects that segment’s revenue to fall to £30 million from £52.5 million the prior year.
The update shows the company's core business remains resilient, successfully navigating cost pressures in the consumer sector. Shareholders will watch the full earnings report on July 28 for commentary on future licensing deals and margin outlook.
This article is for informational purposes only and does not constitute investment advice.
