- Creative guidelines agreed with Amazon
- Film and TV series years away
- Full-year guidance reiterated
As expected, fantasy miniatures maker Games Workshop (GAW) has provided an update on its agreement with Amazon (AMZN:NASDAQ) to produce films and television series based on the Warhammer 40,000 universe.
As usual Games Workshop has provided the bare minimum in terms of commentary and detail.
Having initially opened as much as 3% higher to a new high of £142.7, the shares have drifted to trade 0.5% down on the day, reflecting the adage, it is better to travel than arrive.
The shares are up more than 15% over the last month following a positive trading update on 22 November and anticipation of today’s confirmation that the two sides have agreed terms on creative guidelines.
Had the companies needed more time or the conversations gone awry, Games Workshop would have been obliged to inform the market.
WHAT NOW?
The company reminded investors that production processes in respect of films and television series may take a number of years, and it makes no change to its forecast for the full year to 1 June 2025.
Investment analyst Daniel Coatsworth at AJ Bell commented: ‘Amazon will now have exclusive rights to pursue TV and film adaptations – with an option to licence equivalent rights in the broader Warhammer Fantasy universe after any initial productions have been released. This is positive news for the company on two fronts.
‘First, it should offer a stream of licensing revenue with very little additional cost borne by the company. Second, it is a showcase for Games Workshop and its products which could win over new fans to its tabletop miniature war games.
‘That’s not to say there aren’t risks attached. There have been plenty of examples of TV and film production based on content with devoted fanbases disappointing devotees in the past. Games Workshop’s key strength is its army of enthusiastic hobbyists and it would be a negative if it did anything to alienate them.’
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author (Martin Gamble) and the editor (Tom Sieber) own shares in AJ Bell.
