World Cup fever set to provide short-term boost for British firms
Experts at Hargreaves Lansdown have crunched World Cup numbers.
The World Cup is set to deliver a boost for some of Britain’s biggest companies, with the likes of Just Eat, ITV and Domino’s poised to cash in on football fever.
Experts at Hargreaves Lansdown believe the tournament, which begins next week in Russia, will also deliver a fillip for electricals retailer Dixons Carphone and Mike Ashley’s Sports Direct.
Laith Khalaf, senior analyst at the group, said: “There are definitely some businesses which can expect a short-term boost from the World Cup.
“Dixons Carphone is a case in point. The World Cup will undoubtedly spur a wave of TV purchases and as the last electrical retailer standing on the UK high street, Dixons Carphone can expect to pick up some additional sales from football fever.”
ITV is set to cash in on advertising revenue from both the World Cup and Love Island, which Mr Khalaf said will deliver a “sizzling summer” for the broadcaster.
The fortunes of bookies Ladbrokes and Paddy Power Betfair will be tied to those of the England team.
“A strong showing from England will keep interest and hopes high, and the further the national team progresses, the more punters are likely to bet with their hearts rather than their heads,” he added.
The Three Lions play their final warm-up game against Costa Rica at Elland Road on Thursday before flying out to their base in Repino.
Fans enjoying takeaway while watching matches at home are expected to jack up sales at Just Eat and Domino’s, while pubs group Greene King is expected to be boosted by football fans piling in to support their team.
But Mr Khalaf added a note of caution to would-be investors looking for a short-term gain from investing in shares.
“In the grand scheme of things this isn’t in isolation a reason to invest.
“Investors will still be left holding any stocks they have purchased once the World Cup has been and gone, so it’s important to consider the long-term prospects of a company before backing it.
“Indeed some of the companies in the frame to benefit from the World Cup are going through a rough patch, and a few weeks of additional sales aren’t going to be enough to trigger a wholescale turnaround.”