With 22.5 million viewers tuning in to the opening game between Germany and Scotland, the UEFA Euro provide a perfect opportunity for a marketing boost for many brands.
As the competition intensifies, with larger games like the semi-finals and finals ahead, viewership is only beginning.
During Euro 2020, over 300 million individuals watched the finals, and the competition reached over 1.9 billion unique viewers.
For companies, this level of exposure can be huge, potentially leading to increased brand awareness and market share.
We will be exploring some brands that are well-poised to capture the spotlight.
Booking Holdings (NASDAQ: BKNG)
Booking.com, the flagship brand of Booking Holdings is one of the sponsors of Euro 2024.
As the world’s most used online travel application, Booking.com offers a myriad of services
Since 2010, the application has been trusted by over one billion guests, supported by over 300 million verified reviews across all properties listed on its website.
What sets Booking.com apart from other competitors such as Airbnb (NASDAQ: ABNB) or Expedia under Expedia Group (NASDAQ: EXPE) is its scale and breadth of offerings.
Unlike Airbnb, which primarily provides accommodation services, Booking.com also offers flight, vehicle rentals, and attractions booking services.
According to the travel payment service provider, YouTrip, Booking.com has the largest number of listings with the broadest global presence.
The application has over 28 million listings across 220 countries
This extensive scale has made Booking.com the most downloaded travel agency application in 2023, according to a third-party research firm, Appmagic.
In addition to Booking.com, Booking Holdings also operates other travel-related applications, such as Agoda and Kayak.
For the first quarter of 2024 (1Q 2024), Booking Holdings recorded an impressive financial performance.
Total revenue stood at US$4.4 billion, marking a 15.8% year on year increase.
Net profit saw a staggering 191.7% year on year rise, surging from US$266 million to US$776 million.
The travel provider also generated a free cash flow of US$2.6 billion.
Apart from Euro 2024, Booking.com also sponsors other key events across Europe, such as the Eurovision Song Contest.
These strategic partnerships capitalise on events that generate high demand for travel and accommodation services.
Booking Holdings has declared its first-ever dividend of US$8.75 for 1Q 2024.
Investors can expect regular dividend payout going forward.
Alibaba (NYSE: BABA)
AliExpress, Alibaba’s international e-commerce wing is another sponsor of Euro 2024.
With the rise of another Chinese e-commerce platform, TEMU, from Pinduoduo (NASDAQ: PDD), AliExpress has gradually lost its dominance.
AliExpress hopes that its sponsorship status will boost brand awareness and revitalise its previously-held market share.
Alibaba’s international e-commerce arm, also known as Alibaba International Digital Commerce Group (AIDC), contributes to about 12% of Alibaba’s total revenue.
Another notable brand under AIDC is Lazada, which is more active across Southeast Asia.
For the fourth quarter of fiscal year 2024 (4Q FY2024), AIDC experienced a remarkable 45% year on year growth in revenue.
This growth in revenue was driven by the introduction of “Choice” from Aliexpress.
Choice is a premium service that combines the flexibility of third-party merchant selling with the logistics of first-party retail.
This streamlines the supply chain, ensuring faster delivery and better quality control.
As of now, Choice represents 70% of Aliexpress’s total orders.
Apart from AIDC, nearly all of Alibaba’s major business segments, including domestic commerce, cloud, and logistic services, saw a year on year growth in revenue.
For FY2024, Alibaba reported a revenue of RMB 941.2 billion, a modest 8.3% year on year increase.
Net profit remained resilient, rising by 10.0% year on year to RMB 79.7 billion, despite an 86.1% decline in net profit in the last quarter of FY2024.
The 86.1% decline in net profit was primarily attributed to a net loss from Alibaba’s investments in publicly traded companies, rather than key business operations.
The company generated a free cash flow of RMB 156.2 billion.
Apart from AliExpress, AliPay is another company involved in the competition.
AliPay is under the Ant Financial Group, of which Alibaba owns 33% of it.
Like Booking Holdings, Alibaba recently announced its first-ever annual dividend for fiscal year 2023.
Subsequently, Alibaba has issued a regular dividend of US$1.00 and a one-time extraordinary payment of US$0.66 per share for FY2024.
The Coca-Cola Company (NYSE: KO)
Coca-Cola Zero is another brand sponsoring the tournament.
Apart from creating brand awareness, Coca-Cola has launched a programme aimed at driving sales for Coca-Cola Zero.
Football fans can purchase a can and participate to win prizes related to the tournament, including a VIP finals experience.
This is not the first time the soft drink distributor has been involved in sports tournaments.
Apart from UEFA Euro, Coca-Cola has been a partner with the Fifa World Cup since 1974 and has advertised at every World Cup since 1950.
Partnering with these major events has been a highly beneficial for the company.
In the last Fifa World Cup in 2022, Coca-Cola observed subsequent 7.0% year on year increase in net sales for its fourth quarter result in fiscal year 2022.
Coca-Cola is hopeful that their campaign in this competition will also yield similar results.
For 1Q 2024, Coca-Cola delivered another set of solid earnings.
Net sales experienced a small uptick of 3% year on year, rising from US$11.0 billion to US$11.3 billion.
Net profit also rose slightly by 2.3% year on year, from US$3.1 billion to US$3.2 billion.
Coca-Cola was also able to generate a free cash flow of US$158 million.
Coca-Cola has also proven to be a reliable dividend distributor, issuing consistent quarterly dividends.
The company has recently approved the 62nd consecutive annual dividend increase for FY2024, at US$0.485 per share, an increase from the previous year’s US$0.46.
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Disclosure: Aw Kai Rui owns stocks of The Coca-Cola Company
