[Archive] Games Workshop financial reports analysis

wallacer:

For those who are interested:

Fool UK | Share Tips, Investing and Stock Market News

Games Workshop swaps tin for plastic to beat market

UPDATE 1-Games Workshop FY pretax profit up | Reuters

http://www.reuters.com/finance/stocks/overview?symbol=GAW.L

cornixt:

Quote from the first one: "Less impressive is the online operation. The report boasts it’s revamped and rolled-out a new website successfully, but I think the site is somewhat confusing, and hides the products for sale. "

I have trouble finding a page that doesn’t have a billion products for sale on it.

GRNDL:

I don’t even bother with the website anymore. I used to go there for sneak peaks, conversion articles and to buy bitz, but now most of that is moot. I have a very resourceful FLGS and pretty much anything thats direct services related I can probably get from him.

Personally, I can’t see how GW is making money after all this time abusing its customers. Granted, some things like Games Day have gotten better, but after fiascos like the Deffroller and blastscape terrain, their performance and strategies leave a lot to be desired.

wallacer:

I don’t like the web site much either, i’m not surprised it’s being reviewed unfavourably. It must be incredibly annoying for someone just starting in the game wanting to buy something or for someone looking for a gift.

two_heads_talking:

I don't even bother with the website anymore. I used to go there for sneak peaks, conversion articles and to buy bitz, but now most of that is moot. I have a very resourceful FLGS and pretty much anything thats direct services related I can probably get from him.

Personally, I can't see how GW is making money after all this time abusing its customers. Granted, some things like Games Day have gotten better, but after fiascos like the Deffroller and blastscape terrain, their performance and strategies leave a lot to be desired.

GRNDL
Dakka DaKKA has a few conversations about these issues too. the finances are abysmal and the website seems like it's done by someone's friend in exchange for free product..

Theory_Man:

I don't like the web site much either, i'm not surprised it's being reviewed unfavourably.  It must be incredibly annoying for someone just starting in the game wanting to buy something or for someone looking for a gift.

wallacer
Second

It's weird that GW doesn't put a little more effort in in it's online store and promote the formation of gamer clubs at peoples' houses and mareting more to independent retailers to get some sales in more rural areas were placing a GW store would not be profitable considering, according to the 1st article, "Salaries and related expenses are Games Workshop's biggest expense at over £50m."

I agree with the article's statement that GW paying off alot of it's debt from money gained from royalties is a good move.

.02

Kera foehunter:

ah!! same old stuff!!

Grimstonefire:

I’d have to agree with you Theory_Man

Kirby is an @ss as always, but in terms of paying off debts whilst they have the cash boost from licenses it’s a smart move.  Leverage wise they must be a whole lot better off now.

It’s funny reading the other articles about it though, if they had not had the benefits of the exchange movement they would have done badly.  Being saved by something outside of their control is not really something to be pleased about I think, and certainly no measure of long term success.  I personally don’t see how the one man store format can possibly work?  It would have to be a small store.

dedwrekka:

I don't like the web site much either, i'm not surprised it's being reviewed unfavourably.  It must be incredibly annoying for someone just starting in the game wanting to buy something or for someone looking for a gift.

wallacer
I don't understand the bile against the website from a design perspective, it's actually very well designed. The last two sites would change format as you moved through the links, and some articles and such were so far buried that you had to go through four or more links and search for link-words in multiple articles just to find them (Case in point, the Feral Ork articles by Chambers and Wood).

The current website has a very easy to navigate layout. Quick dropdown menus for when you want to get to an army's section fast, and the articles and related bits and books are all attached to the army's section in the store. The store is also no longer like it's own website away from the main one and links don't disappear from it as you go deeper into the website.

From a design perspective it's incredibly well done. From a content perspective it leaves something to be desired.

dedwrekka:

I don't like the web site much either, i'm not surprised it's being reviewed unfavourably.  It must be incredibly annoying for someone just starting in the game wanting to buy something or for someone looking for a gift.

wallacer
Second

It's weird that GW doesn't put a little more effort in in it's online store and promote the formation of gamer clubs at peoples' houses and mareting more to independent retailers to get some sales in more rural areas were placing a GW store would not be profitable considering, according to the 1st article, "Salaries and related expenses are Games Workshop's biggest expense at over £50m."

I agree with the article's statement that GW paying off alot of it's debt from money gained from royalties is a good move.

.02


Theory_Man
Well actually they've increased the number of bits packs and collectors models since the store got reformatted, so they're keeping their end of that bargain at the moment.

The problem with gamer clubs at people's houses is that it gives no street presence. You can't walk by someone's house, look through the window and see the eye catching pictures and miniatures, and then go in there and buy some. Trying to get independents to pick it up is hit or miss, they control their stocks, not GW, and they may or may no even be willing to give up space for tables or to hold events in the area.

Seeding GW stores is their best bet to get more of their product on the shelves and get more exposure to the public.
It's funny reading the other articles about it though, if they had not had the benefits of the exchange movement they would have done badly.  Being saved by something outside of their control is not really something to be pleased about I think, and certainly no measure of long term success.  I personally don't see how the one man store format can possibly work?  It would have to be a small store.

Grimstonefire
Actually, from the sounds of it they are profiting a lot more off of royalties and the switch to plastic over metals.

two_heads_talking:

Actually, from the sounds of it they are profiting a lot more off of royalties and the switch to plastic over metals.

dedwrekka
they are, where plastics used to be the cheaper alternative, the charge now for plastics is equal to or more than the metal alternatives. It's proven it's cheaper to make the plastics (after the initial investment for the mold and machine it's pretty much pennies on the dollar to fabricate, in that it's just materials and some labor) but they've gone ahead and said, we'll charge what the market will bear, meaning a direct increase in cost..

If they don't profit off increased plastic sales, they will fold like a piece of paper in a rainstorm.. It's been nearly 4 years since GW priced me right out of their game.. (for me, I use what I have and that's that....)

Kera foehunter:

well two heads is right this year they price me out to !! who want plastic

Willmark:

...From a content perspective it leaves something to be desired.

dedwrekka
There is the issue.

The Brain:

I think the web site is horrible. It is a pain to move around. On any computer that I try to look it up on it runs very slow so there is some kind of software problem. It also has very poor pics of the product. The old site used to show you bits of each model even after they stopped selling them individually. Now all you see is the box cover.

The whole one guy to a store thing it is sad. The employees they get are usually weirdoes that give off the gamer stereotypes. It is awful if you go in to pick up paint they hound you like vultures, pestering you with questions like you a newbe, but when you need to be checked out they are pestering someone else who just walked in. If they are going to keep this model then they need to keep the guy at the register and keep them from hawking the people on the floor.

As far as pricing goes I stopped buying figs from them over a year ago when I lost my connection. Now days I stick to ebay and conventions for the stuff I want. I don�?Tt buy all this crap about their licensing and how much it cost to make molds. They have been saying that stuff for years. They tried to say last year that it was because of the price of gas, but if you notice the cost did not come down this year. If you have looked at the price of the new great swords you know what I mean. If they can afford to make a profit off of their employees (who get 50% off) then they are steeling from the rest of us.