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Why Dixons Carphone, Just Eat and Sports Direct will be among the World Cup winners

Published: 22:22 06 Jun 2018 AEST

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It all starts next Thursday, although England aren’t on until the Monday night

Sports fans around the globe are getting excited for the FIFA World Cup 2018 which kicks off in Russia next week.

But it’s not just sports-mad fans, there are also a few companies which will be looking forward to the start of the event.

Chief among them is Dixons Carphone PLC (LON:DC.), which will be hoping to get a boost from the tournament after a fairly rotten few months.

READ: Profit warning for Dixons

With their eyes set to be glued to their screens for at least two weeks – possibly longer if England don’t cock up again – many take the start of a big sporting event as a good opportunity to replace their TV sets.

“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,” said Hargreaves Lansdown analyst Laith Khalaf.

ITV to get one over on Sky and BT

ITV PLC (LON:ITV) is another which should benefit from more eyeballs on screens during the World Cup.

It’s often a lot of eyeballs, too: the final of the 2014 World Cup drew an audience of more than 20mln in the UK.

“ITV played second fiddle to the BBC in terms of its viewers in the simultaneous broadcasts, but 3.9 million sets of eyeballs glued to the channel still gave it a significant platform to sell advertising,” adds Khalaf.

With Love Island over on ITV2 proving to be very popular with advertisers and in the ratings as well, ITV should be set for a sizzling summer.

Takeaways in demand

Given that a lot of us will be spending our spare time plonked in front of our big screens, takeaway food firms are also likely to be licking their lips at the prospect of four weeks of non-stop football.

“There’s nothing like a tasty snack or three to calm pre-match jitters, and both Just Eat PLC (LON:JE.) and Domino’s Pizza Group PLC (LON:DOM) will be hoping to cash in on World Cup hunger pangs,” says Khalaf.

Just Eat also has operations in Denmark, France and Switzerland, while it is developing its presence in Spain, Mexico and Brazil – all of which are competing at the World Cup.

Domino’s also operates in Switzerland, as well as Iceland, Sweden and Germany which will also be competing in Russia.

Brief respite for pubs

If you’re not watching the game at home or round your mate’s, there’s a strong possibility that you’ll head to the pub to cheer on England.

Life has been tough for Britain’s pubs recently, with the bad weather, higher costs and a slowdown in consumer spending all, to some degree, weighing on the performance of the likes of Greene King PLC (LON:GNK), Marston’s PLC (LON:MARS) and Mitchells & Butlers PLC (LON:MAB).

But sporting events tend to draw people in, especially in the summer, and that should yield some respite from the difficult trading conditions.

“Once the football frenzy dies down though, the harsh reality of life operating pub, restaurant and hotel chains is likely to reassert itself,” Khalaf cautions.

Don’t expect JD Wetherspoon PLC (LON:JDW) to get a boost from the football fever though; its pubs don’t show live sports, so punters tend to head elsewhere when big matches are on.

Bookies want us to back England

England hardly have a good track record in major tournaments, but the bookies – Ladbrokes and Coral owner GVC Holdings PLC (LON:GVC) and Paddy Power Betfair PLC (LON:PPB) – will be hoping the Three Lions can go on a little run.

Expect to see more of Ray Winston on your screens as the gambling firms ply us with even more ads, encouraging us to bet with our hearts and back England.

“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,” notes Khalaf.

Team shirts now a fashion statement

Sports retailers such as JD Sports Fashion PLC (LON:JD.) and Sports Direct International PLC (LON:SPD) should also get a little boost as fans rush out to snap up the latest national team shirts.

Nigeria’s kit received a whopping a 3mln pre-orders, while England’s training kit has sold out on Nike’s website.

“A personal fiefdom, run by a charismatic alpha male with a reputation for not always following the rules, Sports Direct may also stand to benefit from the forthcoming football tournament.”

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