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 GW made a profit!!!!

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Join date : 2009-11-27
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Location : Store: G&S, Work: Columbia, Live: Columbia at the mo

PostSubject: GW made a profit!!!!   Mon Jan 11, 2010 11:04 am

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PostSubject: Re: GW made a profit!!!!   Mon Jan 11, 2010 11:32 am

well atleast over seas there making money thats good.

Nicholas A Walters AKA Scooter
Glen Burnie BAttle bunker Councle
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PostSubject: Re: GW made a profit!!!!   Mon Jan 11, 2010 1:05 pm

From another article:

Quote :
Games Workshop

Profit upgrades do not come much bigger than that delivered yesterday by Games Workshop. The maker and retailer of fantasy table-top figures said that pre-tax profits for the 12 months to May 30 would be “materially ahead” of expectations — about £5 million ahead, on the estimation of KBC Peel Hunt, its stockbroker, or 56 per cent higher than the £9 million that it had previously pencilled in.

The shares rose 30 per cent in response. Such gains had nothing to do with a seasonal fillip in sales of Warhammer, its flagship game, or an increase in the spending power of teenage boys. Revenues in the first six months of its financial year fell slightly in constant-currency terms, while trading last month was merely “satisfactory”.

Rather, factory improvements — specifically, greater efficiencies in the moulding of plastic figures — have boosted margins. So, too, has the adoption of a smaller retail format, whereby the newer of its 370 stores — mostly “infills” within conurbations where it already trades — can be run by one person each.

The company is enjoying steady growth in the royalties it earns from licensing titles to computer games developers, such as Electronic Arts and THQ. The longer-term appeal is that Games Workshop’s lower rate of capital and operating expenditure from here means that any improvements in sales will drop straight to the bottom line. However, at 332½p, up 77½p, or 11 times earnings, look to buy lower down.

Emphasis mine, they're selling less product, but because they're making so much more in plastic they're finally seeing some profit, whoever, note THEY'RE SELLING LESS PRODUCT, and the support for the hobby is presumably declining to reflect that as people are switching to videogames and whatever else.

Also, to people who say, "if plastic is so much cheaper to make why don't they sell it for less," here's your answer. They can't, because they rely on that increased margin to survive.
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PostSubject: Re: GW made a profit!!!!   Tue Jan 12, 2010 6:25 am

One could argue that the loss of sales is because of the higher prices.

10 years ago I was mildly surprised at the fact that they could be successful at the prices they were selling their product, now I'm flat out amazed. I understand why those of us who are hooked now play but I simply can't imagine how a new player, most often a teenager affords to start playing given the other entertainment options out there and how they're structured.
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