Interactive Investor

UTV joins rush to cash in on World Cup

16th May 2014 15:25

David Prosser from interactive investor

UTV Media, the Northern Irish radio and television company, is expecting revenues to jump by 18% during the second quarter of the year thanks to the football World Cup in Brazil, the firm said on Friday.

UTV, which has radio broadcasting rights for the tournament, said it was already beginning to benefit from interest in the World Cup.

Sales were up 7% to £27.8 million during the first quarter of the year, it said on Friday, with some of the gain directly attributable to the football - though UTV also said there had been a general modest recovery in the advertising market for radio broadcasters.

The company expects its Talksport station, which is completely focused on sports news and features, to be a particular beneficiary of the tournament, predicting a 45% increase in revenues for the channel during the second three months of the year. The station saw sales rise by 16% during the first quarter.

Overall, the company is now predicting a sales increase of 12% for the first half of the year. Group finance director Norman McKeown said: "It is a combination of a return to growing markets and also the boost that we get from the World Cup."

Shares in UTV, which is listed in London, were down just over 1% in early afternoon trading on Friday.

Other businesses in line for a windfall

The World Cup is widely expected to provide a boost for a wide range of businesses. In addition to broadcasters able to pick up greater advertising revenues from football-driven audience increases, the home electricals sector also hopes to cash in. Sales of televisions, for example, rose by 40% in the run up to the 2010 World Cup.

Businesses such as takeaway food chains are also expecting to get a lift as people buy food they can eat in front of the television. Off-licenses and other drinks retailers are in line for a similar boost.

By contrast, footfall on the high street tends to fall markedly during major sporting tournaments, though the evening kick-off times for the Brazilian tournament may mitigate against that.