ITV to charge premium advertising rates
Those who aren’t lucky enough to make it to Brazil will have to jostle for position in front of the TV, and ITV (ITV) is one of many broadcasters vying for viewers.
Spooner said ITV was well placed to make gains in advertising revenue from the tournament, showing 34 games across two channels and boasting a ‘knowledgeable and respected team of pundits and commentators’.
‘Additional benefits could come from advertising with one company reporting that the group could potentially charge a £300,000 premium for advertising rights for a period of just 30 seconds during England’s matches,’ said Spooner.
‘Investors should be encouraged that ITV has taken appropriate actions to make the most of the tournament by showcasing global talent as well as national matches, the group have the potential to benefit.’
Supporters to flood to Sports Direct for replica shirts
No supporter will be without a replica football shirt this summer, and discount sportswear retailer Sports Direct (SPD) will be the go-to shop for many.
Spooner believes it is not just the replica shirt market that will be boosted by the World Cup, but football merchandise in general.
‘The retail group’s online operations offer a vast array of products at reasonable prices and will therefore be easily accessed by supporters across the country,’ he said.
‘Investors should be aware that as well as the official merchandise being a potential good seller, general footballing goods sales may also receive a boost – particularly if England progress further than the group stages.’
Hungry fans to dial a Domino’s Pizza
Takeaway chain Domino’s Pizza (DPZ) has profited from large sporting events in the past and that trend is set to continue.
With 64 matches played over three weeks, die-hard football enthusiasts aren’t going to have much time for cooking, and are more likely to reach for the phone for a takeaway.
‘The late nature of the kick-offs of this year’s tournament will mean that more people could choose to stay home and enjoy the games,’ said Spooner. ‘Domino’s has previously done well during large sporting events and investors should acknowledge that. Immediately following South Africa’s World Cup [in 2010] the company reported a 13.7% rise in like-for-like sales in the six months covering the period when the tournament was played.’
Spooner expects to see various promotions on offer over the World Cup that will increase sales.
William Hill to take a slice of World Cup bets
The odds of an England victory at the World Cup is 33-1, which Spooner believes will entice many to ‘have a flutter’ at a William Hill (WMH) bookmakers.
During the last World Cup in 2010 British punters gambled £1 billion and as consumer confidence is now higher and more likely to spend bets could exceed this figure.
‘The global appeal of events William Hill cover means they are involved with most major sporting events and investors should acknowledge that the tournament taking place in Brazil this summer could benefit the group,’ said Spooner.
Extended opening hours a boon to pub group Marston’s
Plans by independent brewer and pub group Marston’s (MARS) to benefit from the World Cup will help to make it a profitable summer for the group.
The government has already confirmed pubs will be able to stay open beyond normal hours to show England matches that have late kick-offs. While the extension of the hours will only apply to England’s opening game against Italy on 14 June, which has an 11pm kick-off, depending on England’s success this could be revised.
This is good news for Marston’s, which operates 2150 pubs in the UK and ‘will aim to gain more capital by enticing football fans to visit their establishments over the event period’, said Spooner.
‘Opening hours are set to be extended in some venues so the group could look to benefit from longer [trading] periods. Investors will be reassured that Marston’s started the year well and could be a beneficiary of a sporting event that is of much national interest,’ he said.