GW: “New” Attitude Pays Dividends

Games Workshop is proving that their new focus is really paying off in dividends – literally!

It’s been almost two years since fans of Warhammer everywhere felt a shift in the hobby. But this wasn’t because of a new edition, no, this was because something had changed from the “Top” and it started to roll downhill. That monumental shift was in Games Workshop’s relationship with the players and the community. First, they got on Social Media, then they interacted with fans and TOs. They started listening to their players – hardcore and hobbyist alike.

Happy Little Thin Coats!

They started doing painting videos, cinematic trailers for armies and even started pumping out their own rumors and teasers! Oh and don’t forget the Twitch Streams they run. All of that coalesced into a new Warhammer Community website and back-to-back summer campaigns (one for each of their dominate gaming systems).

Now, it hasn’t all been gold and roses – there have been some hiccups and bumps along the road. Learn experiences are good though as they show there is room from improvement. And all that interaction and receptiveness was  great for the fans – but at the end of the day, they are a business and they need to be profitable and make money. So has this new strategy paid off? You could say that.

via Games Workshop Investor Relations

Dividend and Trading Statement

Games Workshop Group PLC announces that the Board has today declared a dividend of 35 pence per share. This will be paid on 27 October 2017 for shareholders on the register at 22 September 2017, with an ex-dividend date of 21 September 2017. The last date for elections for the dividend re-investment plan is 6 October 2017.

Following on from the Group’s update in July, trading for the first quarter of the current financial year has continued strongly. Sales and, given the high operational gearing of the business, profits for 2017/18 to date are therefore well above the same period in the prior year.

A further update will be given as appropriate.

We’ve saw the 2016-17 Annual Report back in July. But this year dividend of 35 pence per share is a pretty solid return. For comparison, in October 2016 they announced a dividend of 25 pence per share for December 2016. Before that it was a 20 pence per share dividend announced in April 2016 which was paid in June of that year. Those are some pretty interesting numbers to follow…

Now, how much of that had to do with the items they released vs what they put out on shelves the previous year? Probably a lot! And correlation is not causation… But, that doesn’t mean their new attitude isn’t helping in both building good will in the players and also helping their bottom line as a company.

Do Your Own Investing Leg Work: Games Workshop Investor Relations Page

 

So what do you think? Are you a fan of this new and improved Games Workshop? How has their strategy of fan-interaction impacted you or your gaming group?

  • zeno666

    This can only come as a big suprise for a company such as GW

    • Discoqing

      And it’s STILL a shame the old world had to die in order for GW to stumble in to good customer service, haha!

      • zeno666

        Yeah, that is very sad :

        • Bradley Macduff

          ah it had poor lighting anyway, and it smelled like the fungus that grows between fat folds

          • why exactly do you know the smell of fungus between fat folds?

      • ZeeLobby

        Well put, haha.

      • DoctorBored

        I wonder though if they had changed attitude while keeping the old world, would it have been a success? No matter what they did, they had to put a new spin on WFB in order to attract a new audience and fit the new rules in while trimming a lot of fat in their line.

        • Discoqing

          New edition, new models, new books, “new gw”…
          I’m pretty sure it would’ve had the same success.
          The game itself wouldn’t have mattered.
          IN MY OPINION

        • Hagwert

          I think if Roundtree had have been put in charge in say 2013 instead of 2015 he wouldn’t have scrapped the Old World just brought in new styles of play like AOS style loose order , skirmish and paths to glory alongside the old ranked up format but all in the old setting in order to give current fans and newbs/kids a type of game that suited them .

          • I_am_Alpharius

            Doubt it. That wheel would, likely, have already in motion. Probably being worked on, in some capacity, along side the work being done on the End Times products. You’re possible looking at some point in 2012, maybe tail end of 2011 when ground work was laid for it.

          • Red_Five_Standing_By

            To be honest, you could have just layered the new AoS realms on top of the old world. We would have the depth of the Old world to build around, with the fluidity and openness of the new realms.

          • vlad78

            Exactly, the realms being a reflection about what happens in the old world, altering reality in turn, a kind of war in heaven, would have been incredible and would have kept the old coherency of the warhammer world. But no, this would have been too good.

          • Seb

            Completely agree, I had hoped this new Age of Sigmar was a coming of Angels and recruitment for armies to travel into the planescape and wage the war in heaven across realms. (Whilst still keeping the old world alive and reeling from these revelations), but no.

            Suffice to say, I don;t mind the models, some are brilliant. Just cant buy into the new themes mostly 🙂

        • AEZ

          Well the new story with focus on stormcasts seems to have payed off.. lots of people here hate them.. but II think they’ve been relatively big sellers.

          • vlad78

            Not on my lawn.

        • Cergorach

          NO! Those golden clad pansies are the reason for GWs current succes! 😉

      • Mr_Pickles

        that’s one heck of a sacrifice…

      • vlad78

        a SHAME with capital letters

      • marxlives

        Judging on how 8th has killed AoS sales and presence in my area, I would say that it wouldn’t have mattered. This is an issue when you have a single company with competing product lines, one steal from the other.

        At the very least WHFB would be doing slightly better in the long run because it is a different format game but at its core was is the difference between playing a Sigmarine with a stormcast bolter and a Space Marine with a bolter?

        In the long run it is going to be interesting to see what happens to AoS in the long run. Being that it didn’t even make the top 5, I think it is even going to sink further with 8th being out.

        In my area Star Wars is the HUGE silent killer, plenty of customers you will never see at the game store. Can’t lie, I play X-Wing and when Legions comes out I will play that and Armada for campaign purposes. I will still play Warmachine, Malifaux, and Dark Age but will I also play a huge in store campaign where tables of Armada and Legion are happening at the same time? You bet your $#% I will.

        8th was huge but then trickled down once the brokeness of certain core rules was found out, promise of more books just to play the game in the future, and word that Xenos were going to suffer the codex cycle.

        Warmachine is actually getting a solid resurgence. Deadzone, Infinity, and the Malifaux scene is next in line for popularity. Most players who came in for 8th are actually getting back into the game scene and…migrating to Infinity. So the positive of seeing the 8th bump is that it gave hard core vets a solid game of 40k and introduced disenchanted players who left the game sceen 2+ years ago to Infinity.

        • Discoqing

          AoS is just starting to get a following in my locality…
          Then new 40k dropped lol.

          Warmachine, 9th Age and KoW are also popular.
          Mainly due to AoS

  • DoctorBored

    Dividends are interesting. They serve multiple purposes. For one, they help attract and keep shareholders. Dividends are different from interest or normal stock growth, since it’s literally cash that you get from owning the stock. Many investors will also take those dividends and pour them right back into the company in the form of new stocks, which drives the stock price up even further.

    For another, Dividends help a company get rid of excess cash. Excess cash? Isn’t having a lot of cash a good thing? Well, sure, if you’re an individual, but as a business, shareholders wonder what you’re doing sitting on a lot of floating cash. If you’ve ever played a competitive RTS, you’ll be familiar with the ‘Float’ idea, of not efficiently spending your money into productivity. It’s very much the same for businesses. By paying out dividends, they knock out some of that excess cash in a productive manner and keep their business lean and mean.

    All in all, dividends going up can be a good thing, but too much can be a sign that the company is ‘floating’ too much cash. Time will tell.

    • AEZ

      I can see there is no reason for them to spend more on new machines to increase production etc since the market is limited.. however.. as a non shareholder but costumor I’d not have minded if they’d just lowered prices 😀

      • DoctorBored

        Hah! That would have been nice.

      • Nostok

        But they may want to locate new production gear in other EU countries to avoid the fall out of Brexit.

  • I_am_Alpharius

    With the majority shareholders being pension investment companies they’ll be happy for the steady return over the last year and half; makes ensuring their pension portfolio’s are funded enough more safe.

  • Krizzab

    yes yes very amusing, but i want Epic and BFG, right now!

  • TheWanderingJewels
    • petrow84

      Thanks for the chuckles, good sir!

  • benn grimm

    Duncan’s like the Mike Mcvey for the millennials, I look forward to reading what he really thinks of gdub in twenty years. I just hope they realise how much he’s done for their image and are showing their appreciation properly.

  • Killer Bee

    still doesn’t justify the massive price hikes for the marines.