Games Workshop H1 2025 trading update: stronger core sales, profits up
Games Workshop has dropped a concise trading update for the six months to 30 November 2025. The topline message: core sales are up strongly, licensing is down sharply, and profit before tax is still higher year on year.
The Board estimates core revenue of not less than £310 million (vs £269.4 million last year), licensing revenue of not less than £16 million (vs £30.1 million), and profit before tax of not less than £135 million (vs £126.8 million). These are at actual rates – in plain English, the figures reflect real-world currency movements rather than constant exchange rates.
Key numbers at a glance
| Metric | H1 2025 estimate | H1 2024/25 | Change (approx.) |
|---|---|---|---|
| Core revenue | ≥ £310.0m | £269.4m | +£40.6m (+15.1%) |
| Licensing revenue | ≥ £16.0m | £30.1m | -£14.1m (-46.8%) |
| Profit before tax (PBT) | ≥ £135.0m | £126.8m | +£8.2m (+6.5%) |
On these base estimates, total revenue would be at least £326 million versus £299.5 million a year ago – growth of roughly 8.8%.
What stands out in this RNS
Core revenue growth is doing the heavy lifting
Core revenue – the main business of selling Warhammer products and services – is up at least 15%. That is a strong print against a sizeable prior-year base. It suggests demand through retail, trade and direct channels remains healthy midway through the financial year.
Given both revenue and profit are presented as “not less than” estimates, the final numbers could be higher when we see the half year. But even at the minimums, the core engine is clearly pulling.
Licensing revenue is down materially, reasons not disclosed
Licensing revenue is at least £16 million, down from £30.1 million. That is a big step down, roughly 47% year on year. The announcement does not explain why.
Licensing can be lumpy by its nature – income often depends on milestone timings, launches, and royalty flows – but the company hasn’t provided detail here. On the base estimates, licensing would represent about 5% of total revenue versus roughly 10% last year, so the mix has shifted towards core.
Profit before tax still higher year on year
Despite the licensing dip, PBT is estimated at not less than £135 million, up from £126.8 million. That is growth of about 6.5% at the minimum. Assuming the base revenue figures, this implies a PBT margin of around 41% on the minimum numbers – though both revenue and profit could move when the final half-year is published.
The key takeaway: the core business has more than offset the licensing shortfall, at least at this stage in the year.
Why this matters for investors
- Evidence of operational strength: A double-digit increase in core revenue suggests healthy demand and good execution across channels. This underpins the investment case more than licensing does.
- Mix shift reduces reliance on licensing: With licensing down, the business is more skewed to its controllable core activities this half. That can be comforting for investors who value predictability.
- Licensing remains a swing factor: The sharp year-on-year drop shows how licensing can influence total revenue and profit. The update does not disclose timing or pipeline details.
- Profit resilience: PBT is higher even with a weaker licensing line. That points to costs and pricing being well managed, though we will need segment detail in January to confirm the drivers.
What to watch in the 13 January 2026 half-year report
- Licensing commentary and outlook: Are we looking at timing effects, fewer releases, or something else? Not disclosed today.
- Gross margin and operating expenses: Today’s release is top-level. The margin story will matter for sustaining profit growth beyond H1.
- Regional and channel performance: Any standout growth in North America, Europe or Asia, and the balance between retail, trade and online, will help explain the core uplift. Not disclosed today.
- Cash flow and any dividend update: The RNS does not mention cash, working capital, or dividends. Worth checking in January.
- FX tailwinds or headwinds: Figures are given at actual rates, but the sensitivity to currency movements is not detailed here.
Context and definitions
- Core revenue: The company’s main trading activities – in essence, selling its products and services.
- Licensing revenue: Income from licensing Games Workshop’s intellectual property to third parties (for example, media and interactive entertainment). The RNS gives no breakdown this time.
- Profit before tax (PBT): Profit after operating costs, interest and other charges, before corporation tax.
- Inside information note: The announcement was categorised as containing inside information under MAR, which ceases to be the case once published.
Risks and sensitivities
- Licensing variability: A softer licensing period can dent total revenue growth even when core is strong. Today’s update does not detail the cause.
- Operational capacity and fulfilment: Strong core growth is positive, but sustaining it requires smooth operations – more colour on costs and capacity would be helpful in January.
- Macro and FX: As results are at actual rates, currency swings can help or hinder headline growth. No FX breakdown is provided.
My take
This is a broadly positive update. Core sales growth of at least 15% is the standout, and it has driven profit higher despite a halving in licensing revenue. For a business built on fan engagement and product cadence, that is the sort of mix you want to see: core strength carrying the load.
The caveat is licensing. The shortfall is material and unexplained, and it introduces some volatility to the top line. If this is mainly timing, it could normalise later in the year, but we do not have guidance here.
Net-net, the direction of travel is favourable. Stronger core, higher profit, and more details to come on 13 January 2026. Keep an eye on the licensing narrative, but give credit to the engine room for delivering.
