Games Workshop Profits Surge as Warhammer 40K Dominates Pop Culture

Games Workshop has announced a massive profit surge. The British company expects pre-tax profits of around £135 million for the second half of 2025. This comes despite a significant drop in revenue from its hit video game, Warhammer 40,000: Space Marine 2.

The news caused the company’s shares to jump by 12.8%. According to IGN, the tabletop wargaming giant is projecting revenues of at least £310 million. This represents a strong 15% year-on-year increase.

Core Miniatures Business Fuels Record Growth

The company’s success is not solely dependent on video games. Its core business of selling miniature figures and tabletop games remains incredibly strong. Games Workshop operates an extensive global network of retail stores.

This physical retail presence continues to serve a dedicated community of hobbyists. The Warhammer 40,000 and Age of Sigmar universes form the bedrock of its financial stability. This diversification protects the company from volatility in other sectors.

Navigating the Highs and Lows of Licensing Revenue

Licensing remains a key, though unpredictable, part of the strategy. The blockbuster success of Space Marine 2, which sold over 7 million copies, was a high point. However, licensing income is expected to fall to at least £16 million for this period.

This is down from £30.1 million in the same period last year. CEO Kevin Rountree has been publicly cautious. He stated that such major successes are “not a given” in the video game world.

The company is actively developing its next major licensed projects. These include the highly anticipated Warhammer 40,000 Cinematic Universe with Amazon. Henry Cavill is attached to star in and executive produce the project.

Future Outlook and External Challenges

Looking ahead, the company faces both opportunities and risks. The brand’s visibility is at an all-time high thanks to its transmedia expansion. However, it must carefully manage this growth.

Earlier warnings about potential U.S. tariffs have not yet had a major financial impact. The company’s strong performance suggests it is well-positioned for future challenges. Its strategy balances ambitious licensing with a reliable core business.

Games Workshop profits demonstrate a masterclass in brand management. The company has turned a niche hobby into a global entertainment powerhouse. Its future looks secure as it continues to conquer new worlds.

Thought you’d like to know

What is Games Workshop’s main source of profit?

Games Workshop’s primary profit comes from its core tabletop business. This includes selling miniature figures, rulebooks, and paints. Licensing deals for video games and media provide a significant, but more variable, secondary income.

How did the stock market react to the profit news?

The company’s share price increased by 12.8% following the announcement. This surge reflects strong investor confidence in the company’s financial health and future prospects. The news was widely reported by financial and gaming outlets.

Is the Space Marine 2 video game still successful?

Yes, Space Marine 2 has been a massive success, selling over 7 million copies. Its launch drove a previous peak in the company’s licensing revenue. The game’s success has cemented Warhammer’s status in the video game industry.

What are the future projects for Warhammer?

Future projects include a Warhammer 40,000 Cinematic Universe with Amazon. An animated series, Warhammer 40,000 Secret Level, is also in development. A third Space Marine video game installment has been confirmed.

Why was the CEO cautious about future profits?

CEO Kevin Rountree cautioned that video game hits are not guaranteed. The licensing revenue stream can be unpredictable from year to year. The company is therefore focusing on a balanced growth strategy.