Games Workshop Group - Forecasts maintained for FY22 and FY23

Games Workshop Group’s (GAW’s) H122 results reflect lower year-on-year revenue growth after a very strong FY21, as expected, with positive comments on new launches, specifically the third edition of Age of Sigmar. Ongoing internal investment to support future growth and new external cost pressures led to a reduction in operating profit pre-royalties, which was more than offset by the notable increase in royalty income. As previously flagged, the shape of our FY22 forecasts has changed to reflect the above dynamics, but our FY22 and FY23 PBT forecasts are broadly unchanged. Our DCF-based valuation increases by c 3% to £134/share.