The future of Games Days and Games Workshop
Part 8 - brief emergency stop in the 'grim present'
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we are usually VERY well informed when it comes to insider
GW-information (if you know what I mean,... *cough*).
we are usually VERY well informed when it comes to insider
GW-information (if you know what I mean,... *cough*).
Surprise, surprise,...
Newsflash: After peaking at over 810 pence per share in October, Games Workshop's stock market value dropped sharply by 24% today, following their release of half-year numbers. Turnover (that is sales, people) is down 12% from last year.
Weeeeeeeeeeeeeeeeeeeeeeeeeeeeee!
How is that possible? I mean after all, GW increased prices so much! How can sales be down? That makes no sense, does it? Well, not to the GW Management it doesn't...
Someone should have told them about the error of their ways....
...not!
Don't say, I didn't tell you Games Workshop! I point at you, going 'HAHA!' while I weep for the hobby and the community.
Articles like the ones we wrote about the Future of Games Days and Games Workshop even got us not one, but two nominations in the Wamp awards for 2013! Over one-hundred-thousand views on our epic wall-of-text-venting-my-frustration series prove that people are concerned about what the GW management is doing - and the Bubble Boys still dance naked in black snow of Nottingham Forrest...
Read up, if you don't know what we are talking about. Oh, and grab some cheeze with our whine and grab a towel for the tears. Make it a large one - you'll need it:
Elasticity without bounce?
Seems Games Workshop has finally found the 'price-elasticity' of their products - or rather as I would like to call it "the point of no return". Why that? I don't think GW will be able to recover from this.
The long awaited downward trend has begun and the management is too immobile and too set in their ways to recognize what the frakk is going on. The have proven that time and time again. FIAL.
Well, inb4 reality check:
StockMarketWire.com - Games Workshop posts pre-tax profits of £7.7m for the six months to 1 December - down from £11.1m last time.
Revenues fell to £60.5m (£59.8m at constant currencies) from £67.5m a year ago and operating profits fell to £7.7m from £11.0m. [edit: that is -30% profit]
Chairman and acting chief executive Tom Kirby said: "Our costs are well under control and margins remain strong. Cash management is good and our capital expenditure continues as planned. Following the implementation of the structural changes just announced we expect to benefit from the more focussed selling operation across all channels against the background of a materially lower cost base."
More "focused selling operations" across all channels?
I already had planned to write another installment of our popular mini-series this weekend, as I have connected a few more dots between the tons of new rumors about Games Workshop that were floating around the Internet the last couple of weeks (the 'death' of Warhammer Fantasy, the desperate White Dwarf, Fusion of GW and FW websites to strengthen sales and so on)...
But this 'little' update - for obvious reasons - could not wait.
Obviously, GW was and is aware of the downward trend in sales for the last couple of months. If they know one thing, it's their numbers and their precious KPIs. That explains some of the hectic changes we will see in the next couple of weeks: Obvious increasingly panicked attempts to increase sales are obvious.
The big meeting of the "black shirts" in Nottingham next month will confirm some of the above rumors. And it's not going to fix GW's problems.And as far as the "more focused selling operations are concerned": I don't see it, Tom. I really don't. I don't see your stock rebound much (except for maybe some technical reaction), and I see it much lower in 6 months time than it is today.
Take a step back, Tom, and think about something you mentioned in some of the early 2000 s shareholder reports. "The problem is us!" See? You already know what's wrong. The community and I personally would offer advise and counselling but then again, we all know you wouldn't even consider taking it... Oh well.
Coming to an Internet near you this weekend:
The Crystal Balls of Galactic President Zaphod Beeblebrox - Part 9
Prepare yourself for part 9 of our epic series - as planned, I will write it this weekend (because I really don't have time today :P).
In the meantime don't let anyone tell you that it doesn't matter that GW's share price dropped.
What do you think? Leave your comments below!
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