ASX Stocks to Benefit from the 2024 Olympic Games in Paris

Ujjwal Maheshwari Ujjwal Maheshwari, June 11, 2024

Which ASX stocks will benefit from the upcoming Olympics in Paris?

As the world edges towards the Paris 2024 Olympic and Paralympic Games, there’s excitement from sports fans across the world. High net worth and institutional investors generally may see certain opportunities to make money. With all the tourists, the new roads and stadiums being built, and the spotlight on the host city—it all adds up to a big boost for businesses. From construction and sightseeing to ads and broadcasting, the opportunities are huge. And let’s not forget about all the money people spend during the games.

However, retail stock investors may not see a chance to profit from investing in certain stocks. In our view, it is misguided for such investors to close their eyes and ears entirely. It isn’t unreasonable to ask the question ‘How could a sport event on the other side of the world benefit companies here? ‘ But if you invest on the ASX, you may be able to find companies that could gain big from this massive event.

 

Media and Broadcasting: Nine Entertainment (ASX: NEC)

Yes, we admit this is an obvious one, but it will derive benefit. Nine Entertainment is going to be a key player during the Olympic Games. This company is the only one showing the Paris 2024 Olympics in Australia, covering everything from TV to digital platforms and radio. This big job means it’ll probably see a nice bump in their ad sales.

Just what this company needs given Chairman Peter Costello’s abrupt departure and intense competition with streaming platforms for practically all other entertainment other than live sports – but even live sports is a monopoly it won’t be able to hold forever – as well as its >30% share price plunge this year.

 

 

Retail and Consumer Goods: Woolworths (ASX: WOW)

Woolworths, one of the biggest names in Australian retail, is also in a great spot to benefit from the Olympics in a way that competitor Coles is not. Woolworths is partnering up with Nine for the Olympic broadcasts, which puts them front and centre for all that media attention. It is all set to cash in on this with special Olympic-themed products, exclusive merchandise, and some smart marketing events lined up. This expected boost in in-store visits and online shopping could help lift Woolworths’ sales, making it a stock worth keeping an eye on during the Olympics.

 

 

Insurance: Insurance Australia Group (ASX: IAG)

Insurance Australia Group, through its NRMA Insurance brand, is the only insurance partner for Nine’s Olympic coverage. This puts their name in the spotlight and ties it to the big national feeling of the Olympics. The increased visibility is likely to attract more customers and keep the ones they already have, as NRMA becomes known for backing big events like this. Expect this strategy to not only grow the company’s premiums but also boost the value for shareholders. Plus, NRMA is involved in community initiatives too and focuses on more than just profits.

 

 

Technology and Streaming: Telstra Corporation (ASX: TLS)

Telstra, Australia’s largest telco, is set to benefit big time from the Olympics, thanks to the expected jump in demand for its services. With all the Olympic action being streamed online by Nine, viewers will be using a lot more data. Telstra’s solid network is key here, ensuring everyone gets a smooth streaming experience. This surge in data use should translate into more money from mobile and broadband services. Telstra is also playing a big part in boosting digital connections for the Games, cementing its place as a major player in tech, and drawing in more customers and investors.

 

 

Hospitality and Tourism: Qantas (ASX: QAN)

Qantas sees increased sales from Australians holidaying in Europe every Northern Summer. But this year is unique, not just because of the Olympics, but because it is launching a direct Perth-Paris flight. It is difficult to imagine it faring anything less than just as successful as its flights between Perth and London as well as between Perth and Rome. Why stop over in a third country like Dubai or Singapore when you can fly straight to Paris? It may be 20% more expensive, but you get what you pay for.

 

 

Watch out for the opportunities ahead!

By taking a close look at how these companies are positioned to benefit from the Games, investors can spot some potentially lucrative investment opportunities. Media and broadcasting, retail, insurance, technology, hospitality, and financial services, all these sectors are set to gain significantly from the Olympics. And the benefit may not just be a short-term bump, but could last for the longer-term. Consider that Qantas’ flights to Paris aren’t just for the Olympics, they will continue thereafter right into the northern winter (unlike the Perth-Rome flights which only run from late June to early October).

As we get closer to the Games, it’s crucial to keep a sharp eye on stocks that could benefit, not just for the few weeks the games are on, but perhaps for sometime thereafter.

 

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