Games Workshop Group - Another record year in FY24

Games Workshop Group (GAW) enjoyed a signature record year in FY24 with the launch of the 10th edition of its largest intellectual property (IP), Warhammer 40K, and strong growth in licensing income. Looking to FY25, management has an ambitious plan for growth. However, it also highlights the challenge of generating year-on-year growth given: 1) 40K is larger than Age of Sigmar (AoS), the fourth edition of which has been launched, and 2) the tough comparative for licensing income, which has a high operating margin. In FY22, the year the prior edition of AoS was launched, core operating profit was broadly flat year on year (negatively affected by higher freight costs and stock provision) on 11% revenue growth, both at constant currency. Our estimates are under review.