Tabletop gaming giant Games Workshop edged higher on Monday after it released fresh details on its potentially-blockbuster content deal with Amazon.
At £98.95 per share, the Warhammer maker’s share price was last up 1.1% in start-of-week trading.
The FTSE 250 firm said that it had entered into an agreement”for the prospective development by Amazon of Games Workshop’s Warhammer 40,000 universe into films and television series, together with associated merchandising rights.”
Under the terms of the agreement, Amazon has been granted exclusive rights to films and television series based on the Warhammer 40,000 gaming system, Games Workshop said.
Furthermore, the US retail and streaming giant has been given an option “to license equivalent rights in the Warhammer Fantasy universe following the release of the initial Warhammer 40,000 production.”
Games Workshop also manufactures the Warhammer Age of Sigmar, Blood Bowl and Horus Heresy gaming systems.
The two companies will now work for together over the next 12 months “to agree creative guidelines for the films and television series,” Games Workshop said, adding that “the agreement will only proceed once the creative guidelines are mutually agreed.”
It is almost a year to the day since Games Workshop first announced an agreement in principle to develop film and TV content with Amazon, as well as the granting of associated merchandising rights to the NASDAQ firm.
Analysts at Edison have noted that any future content would likely shift the UK company’s focus away from animation. The business also licences its intellectual property for use in video games.
Guidance Maintained
In other news, Games Workshop said that its forecasts for the financial year to May 2024 remains unchanged.
The fantasy retailer’s shares plummeted earlier this month when it indicated that sales growth had cooled as its financial first half progressed.
As a consequence, it predicted core revenues (at constant currencies) of “at least” £235 million for the six months to 26 November, an increase of 11% year on year. Corresponsing turnover had increased 14% during the first three months of the half.
Games Workshop’s half-year report is scheduled for 10 January.
Royston Wild owns shares in Games Workshop.