Now that the Summer Olympics has come to a close, we have an opportunity to reflect back and see if all the pomp-and-circumstance amounted to any substantial financial benefit for the parties involved. While the athletes will return home conquering heroes, we will not have a verdict on the benefits for London for many years. Still, a number of corporate affiliates of the events are already looking at their bottom lines and trying to determine if their investment was worth it.
The most visible partner for the London Games in the United States is the NBC Universal who paid $1.18 billion for exclusive rights to broadcast the games in this country. For all the uproar over tape-delayed coverage and the unreliability of the digital streaming service that the network provided for the events, the total viewership for the contests exceeded all expectations; daytime viewership was up an average of 31% from the Beijing games in 2008 and overall ratings were the highest for any non-US based Olympiad in nearly 40 years. Because of these positive signals, NBC said there was a “small chance” that they could see a profit thanks to increased advertising fees charged because of all the extra eyeballs. This will be a huge sigh of relief to Comcast Corp. (CMCSA), the parent company of NBC Universal.
Besides NBC, one company is expected to have a greater takeaway than any others, and it isn't one of the official Olympic sponsors who paid a great deal to have their exclusive relationships with the games protected by brand police. If you are a fan of the Track and Field events, its more likely than not that you noticed the bright neon colored sneakers that a number of the athletes were sporting and the indelible swoosh on the side. That’s right; Nike (NKE) is expected to have the biggest marketing payout from London 2012 with some brilliant placement that put their product at the center of the events despite its non-sponsor status. This news will certainly be difficult to stomach for other companies that paid as much as $155 million for the right to be an official sponsor.
Business Section: Investment Ideas
Do you think these companies’ share prices are set to rise in the coming days as they bask in the glow of the Olympics? We have compiled a list of companies touched by the games and the ones mentioned above. With the exception of McDonalds (MCD), all have seen their share price increase month to date.
Use this to start your research.
Use the Compar-O-Matic to Compare the changes in average analys recommendation for the names below:
1. Comcast Corporation (CMCSA, Earnings, Analysts, Financials): Provides entertainment, information, and communications products and services in the United States and internationally. Market cap at $92.93B, most recent closing price at $34.73. Share price has increased 8.41% month to date (MTD).
2. Nike Inc. (NKE, Earnings, Analysts, Financials): Designs, develops, and markets footwear, apparel, equipment, and accessory products for men, women, and children worldwide. Market cap at $42.89B, most recent closing price at $94.50. Share price has increased 2% MTD.
3. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $88.69B, most recent closing price at $39.40. Share price has decreased 4.76% MTD.
4. The Coca-Cola Company (KO, Earnings, Analysts, Financials): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $88.69B, most recent closing price at $39.40. Share price has increased 1.71% MTD.
5. Visa, Inc. (V, Earnings, Analysts, Financials): Operates retail electronic payments network worldwide. Market cap at $104.71B, most recent closing price at $129.09. Share price has increased 3.41% MTD.
6. Procter & Gamble Co. (PG, Earnings, Analysts, Financials): Provides consumer packaged goods in the United States and internationally. Market cap at $182.96B, most recent closing price at $66.77. Share price has increased 3.02% MTD.
Written by Dan Connelly
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- Comcast Corporation (CMCSA, Chart, Download SEC Filings)
- Nike Inc. (NKE, Chart, Download SEC Filings)
- McDonald's Corp. (MCD, Chart, Download SEC Filings)
- The Coca-Cola Company (KO, Chart, Download SEC Filings)
- Visa, Inc. (V, Chart, Download SEC Filings)
- Procter & Gamble Co. (PG, Chart, Download SEC Filings)
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