Television sport consumption remains at a high level in 2015, despite the appearance of new pay platforms and the transfer of sports broadcasting rights from free channels to pay channels. Frédéric Vaulpré, Head of Eurodata TV Worldwide, notes that “the 2014/2015 season shows that, even without the Olympic Games or the Football World Cup, television was still the main medium used for watching major sports meetings live, with the other media being used rather as a means of completing and enriching the TV experience. Sport continues to beat records and the offer diversifies: women’s football is now enlighted and local sports are becoming established amongst international competitions. This bodes well in the run-up to the Rio Olympic Games!”
The German Adidas Group, following a “stellar financial performance” in this year’s third quarter, expects its 2015 sales to increase at a “high single digit rate” in 2015 on a so-called “currency neutral” basis. After shareholders had previously been told they could expect an increase in the mid-single digits, net income is now projected to increase at a rate of around 10 per cent. The company reports a net profit of 311 million Euros (approx. 339 million US$) in the three months ended September, up from 282 million Euros in the same period the year before, while third-quarter revenue increased 13% to 4.76 billion Euros when adjusted for currency effects.
Driven by an accelerated momentum at adidas as well as robust growth at both Reebok and TaylorMade-adidas Golf, the currency-neutral adidas revenues grew 14%, driven by double-digit sales increases in Western Europe, North America, Greater China, Latin America and MEAA. Currency-neutral Reebok sales were up 3% versus the prior year, with revenues more than doubling in Greater China and growing at double-digit rates in Latin America, Japan as well as MEAA. Revenues at TaylorMade-adidas Golf increased 6% currency-neutral, mainly due to double-digit growth in North America. In euro terms, Group revenues grew 18% to 4.758 billion Euros in the third quarter of 2015 from 4.044 billion Euros in 2014.
“Our relentless focus on the consumer is clearly paying off: The great momentum that adidas and Reebok are enjoying across the globe proves that our products and marketing are resonating extremely well with the target audience, both in the lifestyle and the performance arena,” commented adidas CEO Herbert Hainer CEO. “The third quarter shows that, in combination with our excellence in execution, this is the game plan to drive brand desirability and generate strong topand bottom-line growth.”
This story first appeared in the blog, The Sport Intern. The editor is Karl-Heinz Huba of Lorsch, Germany. He can be reached at ISMG@aol.com. The article is reprinted here with permission of Huba.