To Whom It May Concern: World Cup share tips: 3 stocks set to soar... This year’s football World Cup is set to smash TV records, making it the most watched sporting event ever. Media experts believe football’s growing fan base, the timing of matches and new technology means Brazil 2014 will surpass the 3.6 billion people that watched the 2008 Beijing Olympics. With over half the world watching, this is a major commercial opportunity. In this report I have highlighted 3 British companies (ITV, BETFAIR & Dominos Pizza) poised to prosper from this massive global event. 1) ITV (ITV) ITV have shown every World Cup live since 1966. It holds the joint rights for the 2014 World Cup, along with the BBC. It has also shared the rights for Champion’s League football with Sky Sports since 2003. ITV will be broadcasting the World Cup across channels ITV1 and ITV4. Viewers will also be able to watch all the action live on Mac/PC, mobile and tablet. Companies will be desperate to promote their brands in front of such a large captive audience. Watching football is not casual viewing, fans don’t want to miss a second. Advertisers know it’s a great opportunity to engage with a fully immersed audience. Obviously, the biggest audiences result from England games, where viewer numbers typically reach 15-20 million. During bigger games, they can go even higher. For example, more than 21 million watched England play Sweden during the last World Cup and the England vs Argentina game of the 1998 World Cup (Beckham got sent off, Owen wonder goal) drew in almost 25 million viewers, a record number for a football match solely on ITV. Given the BBC doesn’t run advertising, ITV is in an exclusive position to tap into the surge expected in advertising revenues from this year’s World Cup. If England do well in the tournament, then ITV could see its profits explode. In broader terms, ITV is in good shape. The company has delivered four consecutive years of profit growth. Furthermore, its expansion into online, pay TV and interactive services are expected to deliver double-digit growth. 2) Betfair (BET) Betfair is not like typical bookie. It operates an online platform, or betting exchange, that allows customers to place bets with each other rather than with the bookmaker. This means that Betfair is not exposed to the result of a sporting event. Instead, they make money from the amount of interest in an event. Betfair doesn’t face the same risks as mainstream bookies, if the World Cup goes the wrong way for them. Betfair is seeking to capitalise on interest in the World Cup. It has a 15 month television campaign running with ITV that covers the World Cup and Champions League as well as an ongoing partnership with Sky Sports. Betfair has recently invested heavily in innovations in fixed-odd sports betting and mobile, where it had fallen behind rivals. Its investment in these areas is starting to pay-off. The company recently reported a strong trading update with both revenues and profits at record levels. The CEO of Betfair, Breon Corcoran is hopeful the World Cup will boost business further Our strong trading has continued into the new financial year and we look forward to building on this positive momentum during the World Cup. 3) Domino’s Pizza Group (DOM) Football and pizza: a combination made in heaven. The World Cup is expected to be such a big earner for Dominos that the company is said to have hired an extra 1,300 staff to deal with the anticipated demand. Most of the games are in the evenings, which will obviously suit Domino’s. The pizza delivery company predicts it will deliver nearly 6 million pizzas to ‘arm chair supporters’ across the UK in June and July alone. At the time of the last World Cup, Domino’s reported its sales climbed 21%, though they attributed some of this to a sponsorship deal with Britain’s Got Talent. However, on the day of England’s victory against Slovenia, sales were up 65% year-on-year, including a 333% increase during the game. Domino’s continues to invest in technology, making it easier than ever to order one of its pizzas. Internet sales While the majority of the sales come from England, Domino’s also owns the Master Franchise for two other countries that have qualified for the World Cup: Germany and Switzerland. The German and Swiss operations are still relatively small. What’s more, the German operation has been problematic in its early years but management believe they can get it right and tap into this lucrative market with 80 million consumers. Domino’s has a successful formula: popular pizzas, easy-to-order technology and free delivery. Regardless of the football results, it looks a World Cup winner. 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Posted on: Sun, 29 Jun 2014 18:10:43 +0000
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