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Five World Cup share picks for your portfolio

Your Money
Written By:
Your Money
Posted:
Updated:
10/12/2014

The Share Centre offers five stocks that may benefit from the upcoming 2014 FIFA World Cup.

ITV

ITV is among several broadcasting companies televising World Cup games this summer. Showing 34 games across two channels, the group has accumulated 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.

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.

Sports Direct

As a replica shirt retailer, Sports Direct should see an increase in sales over the tournament period. 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. 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.

Domino’s Pizza

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. Takeaway pizza chain Dominos has previously done well during large sporting events and investors should acknowledge that.

Immediately following South Africa’s Word Cup, the company reported a 13.7 per cent rise in like-for-like sales in the six months covering the period when the tournament was played. We expect to see promotions connected to the event so this World Cup could see similar results.

William Hill

With our national team at around 33-1 to win, a number of supporters are inevitably going to be tempted to have a flutter. During the last World Cup, £1bn was gambled by British punters alone and with consumer spending on the rise, this number could increase. The global appeal of events William Hill covers means it is involved with most major sporting events and investors should acknowledge that the tournament taking place in Brazil this summer could benefit the group.

Marston’s

The company operates 2,150 pubs in the UK and will aim to gain more capital by enticing football fans to visit their establishments over the event period. Opening hours are set to be extended in some venues so the group could look to benefit from longer 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.