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Highlights
- The pandemic forced most sports organisations across the globe to postpone upcoming events or competitions rather than cancel them, while some others opted to continue behind closed doors.
- After a year-long sporting event lull, the global sports arena is currently buzzing with action.
- Investors can include non-sports stocks in their portfolios to make the most of the rise in the number of sporting events globally.
After a year-long sporting event lull, the global sports arena is currently buzzing with action. All major sports events in football, cricket, rugby, boxing, horse racing, athletics, cycling, hockey, darts, basketball, motorsports, and baseball, scheduled for 2020, are being held this year. The pandemic forced most sports organisations to delay many events or competitions rather than withdraw them, while some others opted to continue but behind closed doors.
Resumption of sports events is not only driving direct sports related stocks but also boost several others indirectly. Here we take a look at ten such stocks that have already benefited or may benefit in future from these events. Investors can include non-sports stocks in their portfolios to make the most of the rise in the number of sporting events globally.
1. ITV Plc (LON: ITV)
ITV is a UK-based free-to-air television network. In August 2021, the company invested in Feel Holdings Limited, a digital health startup, and Nineteen21 Limited, an online service that helps users get a fairer price for household bills. In July 2021, ITV invested £2.5 million in Live Tech Games Ltd, a mobile game developer.
For the half-year ended 30 June 2021, the company’s total revenue increased by 27 per cent to £1,548 million, up from £1,218 million in H1 2020 and adjusted EBITA registered an increase of 98 per cent to £327 million in H1 2020 (H1 2020: £165 million), driven by the recovery in the advertising market, and resumption of productions.
The shares of ITV have given a return of 93.19 per cent in the last one year to shareholders, and the market cap stood at £4,687.59 million as of 26 August 2021.
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2. BT Group Plc (LON: BT.A)
BT Group is an international provider of telecommunication services. For the quarter ended 30 June 2021, the revenues of the company declined slightly to £5,071 million from £5,248 million for the same period in 2020 and profit before tax declined to £536 million for the quarter in 2021 compared to £561 million in the previous year.
BT Group’s Consumer division’s revenues for the quarter stood at £2,382 million, primarily driven by BT Sport and higher direct sales of handsets, and easing of lockdown restrictions that enabled pubs, retail stores and clubs to reopen. However, retail footfall and sales were lower than pre-pandemic levels.
The shares of BT Group have given a return of 59.00 per cent in the last one year to shareholders, and the market cap stood at £16,866.16 million as of 26 August 2021.
3. Flutter Entertainment Plc (LON: FLTR)
Flutter Entertainment is a global company engaged in providing sports betting, gaming and entertainment platforms. For the half-year ended 30 June 2021, the company’s revenues reached £3,053 million compared to £1,536 million in H1 2020. The profit before taxes of Flutter Entertainment rose from £24 million in H1 2020 to £77 million in H1 2021.
The shares of Flutter Entertainment have given a return of 16.78 per cent in the last one year to shareholders, and its market cap stood at £25,310.02 million as of 26 August 2021.
4. Britvic Plc (LON: BVIC)
Britvic is a UK-based producer of soft drinks. In May 2021, Britvic took over Plenish, a provider of organic, plant-based beverages such as milk, juices and shots.
The company had a revenue of £384.8 million during Q3 ended 30 June 2021, an increase of 22.8 per cent year-on-year, driven by the easing of lockdown restrictions in the UK, improved performance in the out-of-home channel and on-the-go consumption, and trade restocking ahead of reopening. There was some support with the reopening of indoor hospitality that drove growth during the quarter.
The shares of Britvic have given a year-to-date (YTD) return of 19.52 per cent to shareholders, and the market cap stood at £2,606.84 million as of 26 August 2021.
5. JD Sports Fashion Plc (LON: JD.)
JD Sports Fashion is a company engaged in sports, fashion and outdoor brand retailing. Post-acquisition of DTLR Villa LLC in the US and Marketing Investment Group S.A. in Central Europe, the company operates about 3,300 stores across 29 countries. On 30 June 2021, JD Sports Fashion completed the sale of The Netherlands-based Sports Unlimited Retail BV to Iberian Sports Retail Group SL.
JD Sports Fashion Plc recorded revenues of £6.16 billion in FY 2021 compared to £6.11 billion in FY 2020. The company announced a dividend payout of 1.44 pence per share for the FY2021 period compared to 0.28 pence per share as of FY 2020.
The shares of JD Sports Fashion have given a return of 47.74 per cent in the last one year to shareholders, and its market cap stood at £10,558.70 million as of 26 August 2021.
6. Playtech Plc (LON: PTEC)
Playtech is a company engaged in the development and supply of online gaming and gambling software. In May 2021, a consortium led by Barinboim Group and backed by Menora Mivtachim Insurance and Leumi Partners was sold the financial trading division, Finalto by the company.
For FY 2020 ended 31 March 2021, the company’s adjusted EBITDA stood at €310 million, and revenues were at £522.2 million.
The shares of Playtech have given a return of 15.33 per cent in the last one year to shareholders, and its market cap stood at £1,277.51 million as of 26 August 2021.
7. Diageo Plc (LON: DGE)
Diageo is an international beverage alcohol company with headquarters in London. For the year ended 30 June 2021, Diageo reported net sales of £12.7 billion, up by 8.3 per cent and an operating profit of £3.7 billion, up by 74.6 per cent. Diageo’s net cash from operating activities increased by £1.3 billion to £3.7 billion for the period, and free cash flow by £1.4 billion to £3.0 billion.
For the year ended 30 June 2021, the company raised recommended final dividend payout by 5 per cent to 44.59 pence per share.
The shares of Diageo have given a return of 34.04 per cent in the last one year to shareholders, and the market cap stood at £82,171.53 million as of 26 August 2021.
8. 888 Holdings Plc (LON:888)
888 Holdings Plc, popularly known as 888.com, is the owner of several popular gambling websites. In June this year the company and Authentic Brands Group (ABG), the owner of the Sports Illustrated brand, announced a partnership to create Sports Illustrated iGaming and online sports betting products in the US.
For the quarter ended 30 June 2021, 888 Holdings recorded 10 per cent revenue growth to £257 million compared to £214 million in Q2 2020.
The shares of 888 Holdings have given a return of 107.36 per cent in the last one year to shareholders, and the market cap stood at £1,533.51 million as of 26 August 2021.
9. Arena Events Group Plc (LON:ARE)
Arena Events Group is an integrated event solutions provider. On 23 August 2021, Arena Events Group’s US subsidiary, Arena Aztec Shaffer, entered a new multi-year contract with Championship Management, a PGA TOUR division. In July 2021, the company bagged a multi-million pounds contract to provide one of the venue clusters at the 22nd Commonwealth Games slated for 2022.
For the year ended 31 March 2021, the company recorded revenues of £71.6 million compared to £ 160.6 million in 2020. The Group’s adjusted EBITDA stood at £5.7 million, a decline of 57 per cent on the fifteen-month period ended 31 March 2020, and the operating loss was £9.8 million in FY 2021 compared to a loss of £19.6 million in 2020.
The shares of Arena Events Group have given a return of 162.50 per cent in the last one year to shareholders, and the market cap stood at £50.57 million as of 26 August 2021.
10. Gfinity Plc (LON: GFIN)
Gfinity is an international provider of esports and gaming solutions. On 24 August 2021, Gfinity inked an agreement to acquire Megit Ltd, the firm behind technology and gaming stock tracker Stock Informer, for £5 million. It raised £3.3 million ($4.5 million) through share placing, subscription and PrimaryBid offer to partially fund the takeover. It launched Only Mobile Gaming! (OMG!), a mobile gaming website, in June 2021.
The shares of Gfinity have given a year-to-date (YTD) return of 16.40 per cent to shareholders, and the market cap stood at £39.08 million as of 26 August 2021.
