Jump to content

Welcome to The Bolter and Chainsword
Register now to gain access to all of our features. Once registered and logged in, you will be able to create topics, post replies to existing threads, give reputation to your fellow members, get your own private messenger, post status updates, manage your profile and so much more. If you already have an account, login here - otherwise create an account for free today!
Photo

GW half-year financial report out, 53% growth year-on-year


  • Please log in to reply
43 replies to this topic

#26
Apothecary Vaddon

Apothecary Vaddon

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 1,070 posts
  • Location:Washington State, US
  • Faction: n/a, don't do TT

Tbh I'd be inclined towards thinking that it can make a significant difference, but only insofar as giving you visibility into pain points and showing you problems with your organization. Luckily I think GW is on the upswing and willing to make these kinds of decisions, but if you have software that can sit there on top of your systems, tightly integrated with your physical flows, telling you where you're meeting your quotas, where you aren't, and what kinds of customers are getting left out in the dust? The optimization gains could be ridiculous.

 

It kind of goes hand in hand with wanting to make changes. I'm not entirely sure about hard percentages or even manufacturing specifics (most of my work was on the development/testing of CRM itself, not consultant integration) but I'd be willing to say that as long as you follow what the ERP will tell you, you could double or even triple your efficiency, depending on where you were before. Have to make changes to alleviate whatever issues are holding them back though. The good thing about ERP is that you will be able to make these decisions very quickly; these numbers are just going to flow in and you're going to have some really good and quickly compiled data to tell you where you're falling short. 


  • N1SB likes this

#27
chamberlainskeksil

chamberlainskeksil

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 78 posts

 

"Key to this sales performance has been our commitment to talking with our customers."

 

Who would have thought?

 

 

It's a good point, but for those just glancing over the report, please note the CEO's context there.

 

He's more about social media, Warhammer Community, Warhammer TV on YouTube...than actually having a dialogue.  Yes, I know there was that 1 marketing survey, which is a good step in the right direction, but the learning, then subsequent strategic planning, and subsequent execution, has NOT yet happened yet.

 

So he says talking WITH customers, but when you consider the context, it's more like direct marketing/direct outreach, where they're selling by marketing straight to customers even before they set foot in any store.  That's still great, it's not a problem obviously, but this is just a reminder of that context.

 

 

I think their facebook interaction is sufficient to give anyone there a sense that they are actually having a back and forth.  I also know that if the Warhammer 40,000 social media people tell you that they passed along your message to the person who needs to see it, they actually do.  A friend got contacted about an issue after telling their facebook page about it in a private message.

I think it's a pretty stark contrast to the years around and following the CHS lawsuit where they held any information about future products so close to the chest it was like a state secret or something.  So even if their social media interaction is actually just 95%+ one way, that's still way, way better than it used to be.  And I think the customer base is responding with purchases.


  • MaulerUK likes this

#28
N1SB

N1SB

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 713 posts

Hi guys, back home from 40k, good comments, wanted to respond why I mentioned certain things.

 

 

Tbh I'd be inclined towards thinking that it can make a significant difference, but only insofar as giving you visibility into pain points and showing you problems with your organization. Luckily I think GW is on the upswing and willing to make these kinds of decisions, but if you have software that can sit there on top of your systems, tightly integrated with your physical flows, telling you where you're meeting your quotas, where you aren't, and what kinds of customers are getting left out in the dust? The optimization gains could be ridiculous.

 

It kind of goes hand in hand with wanting to make changes. I'm not entirely sure about hard percentages or even manufacturing specifics (most of my work was on the development/testing of CRM itself, not consultant integration) but I'd be willing to say that as long as you follow what the ERP will tell you, you could double or even triple your efficiency, depending on where you were before. Have to make changes to alleviate whatever issues are holding them back though. The good thing about ERP is that you will be able to make these decisions very quickly; these numbers are just going to flow in and you're going to have some really good and quickly compiled data to tell you where you're falling short. 

 

 

Great comments.  I always trust the builder/tester/architect more than the consultant...because I'm more on the consultancy side.  I know what you mean.

 

I think I also understand your point.  It's a case of they might not know what they don't know, and by how much.  Updating their ERP system to just what's available technologically now let's they catch up really quick, i.e. what you said about being able to SEE and make decisions quickly.  They don't even have the visibility yet.

 

I'll tell you why I ask, as it's quite a Warhammer-specific issue, and it's obvious to anyone who had to advise a friend's spouse/significant other on what Warhammer thing to buy.  GW has so many Stock Keeping Units, all these products...and you can't just substitute one for another.  The result is...for example, I've been looking at Retail i.e. Warhammer Stores, they have so many boxes of things they can't sell...yet they never seem to carry that one Imperial Guard tank I want, they ran out.

 

So then we turn to Mail Order, or just shrug it off and not buy...which is why Mail Order grew so much more than Retail, most likely.  We can see this gap is real.

 

It's an inventory/forecasting issue.  We can call it CRM or ERP, but it's just savvy or data-driven stock-keeping.  Walmart are experts at this and it's the heart of their negotiation strategies, they know customer patterns way better than vendors.  The Chaos Daemons Codex is coming out tomorrow, with new models and stuff.  Could they have predicted more accurately by gathering sales data worldwide of the old Chaos Indices sales and how many Death Guard people bought, so now they'll be more likely to HERE and HERE, but not THERE, where people seem completely fixated on Primaris Marines.

 

Why is this especially important?  Because there seems to be a production issue as well.  If GW knew what to stock more accurately, they'll know what to make more accurately, focus the limited production on priorities.

 

I was just hoping double digit improvement through optimisation.  You're saying it could go well into triple digits.  In a case where GW is practically the entire supply chain, with all the huge variances in between (not sure how much your ERP experience deals with supply chains, but it's "the bullwhip effect" of how even minor changes at the consumer end leads to HUGE changes at the start of the supply chain), okay, I totally see it's a no-brainer, let's just see what we can see.

 

 

 

I think their facebook interaction is sufficient to give anyone there a sense that they are actually having a back and forth.  I also know that if the Warhammer 40,000 social media people tell you that they passed along your message to the person who needs to see it, they actually do.  A friend got contacted about an issue after telling their facebook page about it in a private message.

I think it's a pretty stark contrast to the years around and following the CHS lawsuit where they held any information about future products so close to the chest it was like a state secret or something.  So even if their social media interaction is actually just 95%+ one way, that's still way, way better than it used to be.  And I think the customer base is responding with purchases.

 

 

 

Great points, thanks for your reply.

 

I hadn't considered like how even Facebook interaction is enough.  It might just be a "light touch", a Facebook PM reply.  Sad thing is, you're right, in any other industry we just call it customer support (like post-purchase support, I always found GW/FW mail order support was great because I'm directly giving them money).

 

I appreciated your Facebook anecdote, but I also reckon things like the FAQ "hotline" they added recently, right.  All actually practical things.  It's a great point.

 

The funny thing is, as much as people, including myself, complain about how there's too many ads and marketing in everything, what you described is basically that.  I always wondered what it'd be like if companies acquiesced to those complaints and just cut off all marketing...and you put it nicely above.

 

<shivers at memories of that dark time when we relied on BoLS rumours for news>

 

Just so you know, about 2 years ago (basically just when Warhammer Community started), GW made a new hire for a marketing head.  That person...doesn't get much mention, but plays an important role...is Robert Dekker.  He used to work on the Microsoft's Xbox division in Europe, which was famous for basically creating their own press (because at the time, Sony Playstation and Nintendo somewhat had such close relations with the press that they controlled gaming news).  They basically funded their own magazine (similar to, say, Warhammer Community) and even had their own TV channel on the console (kinda like Warhammer TV).  He's bring that expertise to GW now.  I think it was a very inspired hire and it's been executed well, which is why I think the CEO deliberately mentioned it (also kinda hits at he's the person who really tried to bring in this marketing manager).

 

That Direct Marketing isn't just great for us, the player/customer base, but it's actually really appreciated by FLGSGW does the selling FOR them, rather than shifting that burden onto them.  You're right, it was just missing that rather obvious, fundamental, but missing part.

 

Good comments, thx.


  • Honda, Noserenda and Apothecary Vaddon like this

gallery_57329_13636_22281.jpg


#29
BadSanta

BadSanta

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 110 posts
  • Location:Smolensk, Russia
  • Faction: Tyrant's Legion

I re-read GW financial report and have some notes:

- I think much quantity of +71% mail order increase is from currency conversion rates. They make a change of currency from British Pound to US Dollar for a lot of countries and only this gives GW around +40% more pound for the same stuff;

- 10 millions of Pounds revenue of FW and BL were included in Mail order this year (another some % of increase);

- we don't know exact revenue for FW and don't know how it fares after Alan Bligh death.

 

Also it is very interesting how much 8ed starters and stand alone rulebook were sold. Somewhere in the web I have heard rumour about 350000 of starter sets and 450000 of rulebook.

 

Let's make some calculations:

- Starter set = 95/each = 33,25 millions of Pounds

- Core Rulebook = 35/each = 15,75 millions of Pounds

= total 49 millions of Pounds.

 

Their total revenue = 108,9 millions of Pounds

- minus 8ed 40K reboot = 49 mill.

- minus FW & BL = 10 mill.

- minus currency exchange rates = 10 mill. (this number is somewhere in the report)

- minus income from IP licenses to third parties (i.e. royalties) = 4,2 mill.

= 35,7 millions of Pounds for all other stuff they are producing.

 

35,7 millions (even 50) - is not so good result in my opinion because they got at least half of their income from unneeded W40K 8 edtion reboot (basic starter set and rulebook).

 

As to GW Internet activity - it is good, but one thing what worries me. It seems where are a lot of payed trolls on each major hobby forum/website who usually praise GW (doesn't matter what) and try to silence voices of dissent from even very reasonal commenters.


Edited by BadSanta, 12 January 2018 - 05:26 PM.

  • D3L likes this

WIP - Red Corsairs

 

ETL_2016_Banner_04_Primus_Inter_Pares.jpETL_2016_Medal_01_Custos_Fidei02.gifCall_of_Chaos_9_Banner_01d.jpg ETL_VI_Banner_01_Oath_of_Moment_.jpg


#30
Walter Payton

Walter Payton

    +FRATER DOMUS+

  • + ADEPTUS DOMUS +
  • 2,313 posts
  • Location:Soldier Field, Chicago
  • Faction: Da Bears

Their cash flow statement looks decent too.


"Never die easy."


#31
Rik Lightstar

Rik Lightstar

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 725 posts
  • Location:Stevenage
  • Faction: Astral Claws, Mantis Warriors
The idea of GW paying trolls to comment online is ludicrous. Seriously, they barely pay their front line staff.

The "production issues" comments keep popping up, but so far I'm unconvinced, and I'll explain why:

1) They've stated that they want an 8th Ed Codex out for EVERY faction very quickly.
2) All products are coming with the rules for those minis once the rules are out.
3) Box and insert printing is I believe done by a third party.

Keeping all this in mind, if they sell out of for example a Necron product in the next few weeks, they have three options:
1) Reorder the old packaging and make more of these - A rubbish option as they'll have a new codex this year.
2) Order packaging with the current index rules included - even more rubbish as it will require design work and still be temporary.
3) Order new packaging which can then hit the stores with the Codex release and generate sales.

I know which I'd choose.

Rik
  • Apothecary Vaddon and MaulerUK like this

The Codex Astartes: Taking Away The Freedom Of The Astartes To Pigeonhole Themselves, 
And Restricting Them To Supreme Flexibility Since M31
.


#32
Cryptix

Cryptix

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 1,816 posts
  • Location:Simi Valley, California, USA
  • Faction: Hive Fleet Chimaera, Renegades

The idea of GW paying trolls to comment online is ludicrous. Seriously, they barely pay their front line staff.

The "production issues" comments keep popping up, but so far I'm unconvinced, and I'll explain why:

1) They've stated that they want an 8th Ed Codex out for EVERY faction very quickly.
2) All products are coming with the rules for those minis once the rules are out.
3) Box and insert printing is I believe done by a third party.

Keeping all this in mind, if they sell out of for example a Necron product in the next few weeks, they have three options:
1) Reorder the old packaging and make more of these - A rubbish option as they'll have a new codex this year.
2) Order packaging with the current index rules included - even more rubbish as it will require design work and still be temporary.
3) Order new packaging which can then hit the stores with the Codex release and generate sales.

I know which I'd choose.

Rik

...Codexes are written and printed far in advance first of all, and second of all the Codexes are printed in CHINA. The problem they're having is there's not enough power to plug in another injector to keep up with the increased demand.


  • MaulerUK likes this

Well would you look at the time, it's zombie o'clock!
sml_gallery_55866_13614_5370.jpgL_T_3_2017_Badge_02_Chaplain.jpggallery_4664_12529_16642.jpggallery_60566_6038_377.gifCall_of_Chaos_10_Banner_02_Failed.jpg


#33
Rik Lightstar

Rik Lightstar

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 725 posts
  • Location:Stevenage
  • Faction: Astral Claws, Mantis Warriors


The idea of GW paying trolls to comment online is ludicrous. Seriously, they barely pay their front line staff.

The "production issues" comments keep popping up, but so far I'm unconvinced, and I'll explain why:

1) They've stated that they want an 8th Ed Codex out for EVERY faction very quickly.
2) All products are coming with the rules for those minis once the rules are out.
3) Box and insert printing is I believe done by a third party.

Keeping all this in mind, if they sell out of for example a Necron product in the next few weeks, they have three options:
1) Reorder the old packaging and make more of these - A rubbish option as they'll have a new codex this year.
2) Order packaging with the current index rules included - even more rubbish as it will require design work and still be temporary.
3) Order new packaging which can then hit the stores with the Codex release and generate sales.

I know which I'd choose.

Rik

...Codexes are written and printed far in advance first of all, and second of all the Codexes are printed in CHINA. The problem they're having is there's not enough power to plug in another injector to keep up with the increased demand.

I'm fully aware of what the alleged issue is, I'm saying I don't believe it.

I didn't say it's a printing issue, I'm saying they're holding off on reprints and reboxes until 8th Ed Codexes are released. The result of this is that items appear to be out of stock.

Rik

The Codex Astartes: Taking Away The Freedom Of The Astartes To Pigeonhole Themselves, 
And Restricting Them To Supreme Flexibility Since M31
.


#34
Sabadin

Sabadin

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 479 posts
  • Location:Scarberia
  • Faction: Blood Angels

I didn't say it's a printing issue, I'm saying they're holding off on reprints and reboxes until 8th Ed Codexes are released. The result of this is that items appear to be out of stock.

Rik

Except there are examples like they Tyranids where 1/4 - 1/3 of the range has been out of stock since 8th dropped, and they've had a dex for 2 months now with no improvements on that.

Edited by Sabadin, 14 January 2018 - 11:26 PM.


#35
Rik Lightstar

Rik Lightstar

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 725 posts
  • Location:Stevenage
  • Faction: Astral Claws, Mantis Warriors

I didn't say it's a printing issue, I'm saying they're holding off on reprints and reboxes until 8th Ed Codexes are released. The result of this is that items appear to be out of stock.

Rik

Except there are examples like they Tyranids where 1/4 - 1/3 of the range has been out of stock since 8th dropped, and they've had a dex for 2 months now with no improvements on that.

Just checked, excluding web-bundles there are 3 boxes out of stock they are:

1)Harpy/Hive Crone
2)Tyrant Guard/Hive Guard
3)Raveners

And the Start Collecting box.

Hardly indicative of a major issue. As I said, I'm not convinced. For starters I'd imagine they'd be scaling back on releases if that were the case, which does seem to be the case. There are 2 new ShadeSpire bands and the Necromunda Orlocks coming soon, all with brand new sprue. Either could've been bumped.

The UK power network is under pressure, I work at a data centre where we get asked to run on generators to reduce the load locally. But that's the approach they prefer to limiting supply.

Rik
  • MaulerUK likes this

The Codex Astartes: Taking Away The Freedom Of The Astartes To Pigeonhole Themselves, 
And Restricting Them To Supreme Flexibility Since M31
.


#36
Sabadin

Sabadin

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 479 posts
  • Location:Scarberia
  • Faction: Blood Angels

I didn't say it's a printing issue, I'm saying they're holding off on reprints and reboxes until 8th Ed Codexes are released. The result of this is that items appear to be out of stock.

Rik

Except there are examples like they Tyranids where 1/4 - 1/3 of the range has been out of stock since 8th dropped, and they've had a dex for 2 months now with no improvements on that.
Just checked, excluding web-bundles there are 3 boxes out of stock they are:

1)Harpy/Hive Crone
2)Tyrant Guard/Hive Guard
3)Raveners

And the Start Collecting box....


Ahhh, where as on the North American website that list continues with
4) Hive Tyrant/Swarmlord
5)Toxicrene/Malceptor
6)Haruspex/Exocrine
7)Lictor
8)Pyrovore

Which is substantially more concerning of a list to be out of stock for over 6 months, and makes the production rumours easier to believe.

#37
ERJAK

ERJAK

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 359 posts

I re-read GW financial report and have some notes:
- I think much quantity of +71% mail order increase is from currency conversion rates. They make a change of currency from British Pound to US Dollar for a lot of countries and only this gives GW around +40% more pound for the same stuff;
- 10 millions of Pounds revenue of FW and BL were included in Mail order this year (another some % of increase);
- we don't know exact revenue for FW and don't know how it fares after Alan Bligh death.

Also it is very interesting how much 8ed starters and stand alone rulebook were sold. Somewhere in the web I have heard rumour about 350000 of starter sets and 450000 of rulebook.

Let's make some calculations:
- Starter set = 95/each = 33,25 millions of Pounds
- Core Rulebook = 35/each = 15,75 millions of Pounds
= total 49 millions of Pounds.

Their total revenue = 108,9 millions of Pounds
- minus 8ed 40K reboot = 49 mill.
- minus FW & BL = 10 mill.
- minus currency exchange rates = 10 mill. (this number is somewhere in the report)
- minus income from IP licenses to third parties (i.e. royalties) = 4,2 mill.
= 35,7 millions of Pounds for all other stuff they are producing.

35,7 millions (even 50) - is not so good result in my opinion because they got at least half of their income from unneeded W40K 8 edtion reboot (basic starter set and rulebook).

As to GW Internet activity - it is good, but one thing what worries me. It seems where are a lot of payed trolls on each major hobby forum/website who usually praise GW (doesn't matter what) and try to silence voices of dissent from even very reasonal commenters.


So in summary you used an uncited, incredibly suspect internet rumor to inform a calculation where-in you assume that A) GW somehow sold 100000 MORE rulebooks than boxsets despite the rules being available for free AND the rulebook being IN the boxset B)That every single sale was an undiscounted first party sale and C) That the box set and rulebook only generated additional sales, rather than generating new sales AND crowding out other sales (most notably of the space marine line). All followed up with tinfoil hat nonsense about "Deepstate G-Dubya" silencing dissenters when the recent custodes release should have made it abundantly clear that the dissenters are as loud as they've ever been, and remain the dominant voice of the internet (whether they represent any significant majority or not.)
  • CaptainMarsh, MaulerUK and Ganders like this

#38
Brother Casman

Brother Casman

    ++ ACCUDO FULMINEUS ++

  • ++ MODERATI ++
  • 1,158 posts
  • Location:Freddy Beach
  • Faction: Blood Ravens
Back to the half-year financial report, folks.

N1SB, I always enjoy reading your analyses, so thanks for posting them.
The Great Repaintening! - follow along on my journey to repaint a Blood Ravens army. | Brother Casman's Waaagh! - All of my Orks... for now. | Brother Casman's Terrain Extravaganza! - Everything is complete!


In the operations of war, [...] the expenditure at home and at the front, including entertainment of guests, small items such as glue and paint, and sums spent on chariots and armor, will reach the total of a thousand ounces of silver per day. Such is the cost of raising an army ...


#39
N1SB

N1SB

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 713 posts

It's a good discussion, and in fact, I've been checking on a lot of the points raised, just haven't commented because been it was a weekend full of Warhammer.

 

So for now, just 1 question please, for those in the U.S. and Canada especially: have you guys been noticing Shadespire or Battle For Vedros boxes in Walmart?


  • Redrandy93 likes this

gallery_57329_13636_22281.jpg


#40
Redrandy93

Redrandy93

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 350 posts
  • Location:NYC

From my POV this is good news.   


Brothers this is good news.  Bravo GW!


Redrandy93
5th Company
Planet Lucious 4

"For the Emperor"

"We march with Guilliman"

"Death to Traitors"


#41
Sabadin

Sabadin

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 479 posts
  • Location:Scarberia
  • Faction: Blood Angels



So for now, just 1 question please, for those in the U.S. and Canada especially: have you guys been noticing Shadespire or Battle For Vedros boxes in Walmart?


Not that I've noticed, not advertised on their website either.
  • N1SB likes this

#42
Cryptix

Cryptix

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 1,816 posts
  • Location:Simi Valley, California, USA
  • Faction: Hive Fleet Chimaera, Renegades

It's a good discussion, and in fact, I've been checking on a lot of the points raised, just haven't commented because been it was a weekend full of Warhammer.

 

So for now, just 1 question please, for those in the U.S. and Canada especially: have you guys been noticing Shadespire or Battle For Vedros boxes in Walmart?

I saw a BfV land speeder the other day in the Toys section of my Walmart, yeah.


  • N1SB likes this

Well would you look at the time, it's zombie o'clock!
sml_gallery_55866_13614_5370.jpgL_T_3_2017_Badge_02_Chaplain.jpggallery_4664_12529_16642.jpggallery_60566_6038_377.gifCall_of_Chaos_10_Banner_02_Failed.jpg


#43
Shockmaster

Shockmaster

    +FRATER DOMUS+

  • + FRATER DOMUS +
  • 359 posts
  • Location:UK
  • Faction: Death Guard/Nurgle Daemons

Pleasing to hear things are going so well, should encourage them to keep up with the community engagement and to keep churning out the awesome models they have been in recent years.



#44
Seahawk

Seahawk

    ++ OSSIFRAGUS PRAECURSORIS ++

  • ++ MODERATI ++
  • 9,059 posts
  • Faction: Ultramarines
When I randomly checked their stock and saw it had gone from ~$500 at the start of last year to over $2100 by the end, I whined about not having any stock. :lol:
  • sfPanzer likes this

Tactica: Legion of the Damned; thoughts, tactics, and strategies for the intrepid explorer of rarely-seen units.  

 

Fluff: Naval Operations of Ultramar. Also includes all known named ships for all chapters, as well as ship sizes and assorted information.

 

Personal: The Renegade Hobbyist. This is where I do things! Also, follow me on Twitter at @Atomic_Hamsters.  

 

"I miss using Sly Marbo. I like to think he is still somewhere in the codex, but no one can find the page."

 





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users