Moneycontrol Pro Panorama | Cricket adds to the festive cheer 

The ICC Men's Cricket World Cup is set to bring in more cheer this festive season.

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In India, the second half of the calendar year proves to be a more vibrant period for companies than the first half. The blistering summer season has ended in most parts. Consumers venture out more and loosen their purse strings during the festive season. But 2023 brings a new reason for them to spend more—The ICC Men's Cricket World Cup, set to begin today.

The 48-match tournament is projected to attract a large number of viewers and pull in good revenues for broadcasters and organisers. A 10-second advertising slot is already going at a significant premium to the previous World Cup, reports Bloomberg. A good run by the Indian contingent at the Asia Cup and the Asian Games are likely to strengthen the interest of viewers in sports.

That’s not all. The matches between 10 national teams will be held in different stadiums across the country. This opens up good business opportunities for companies in the hospitality sector. According to Moneycontrol and CNBC TV18 reports, rates of hotel rooms at the venues and flights connecting the cities have risen sharply. Consumers watching at home may also order more take-outs, reflected in the increase in Zomato’s stock price.

Of course, consumer spending will be limited by their incomes. Note that demand in the rural areas still seems to be lagging urban centres. Tepid volume growth at Marico is a case in point. The subdued sales of compact cars and mass market two-wheelers highlight fault lines in consumer demand. You can read our research team’s analysis of Marico’s September quarter update here.

Even so, the upbeat sentiment generated by the World Cup fixtures will be welcomed by companies in the domestic market, especially those in the entertainment sector.

The September quarter has proved to be a fruitful one for movie exhibitors, thanks to big hits and healthy footfalls, point out analysts at Nuvama Institutional Equities. While the World Cup can keep a section of the audience away from movie theatres, the festive season and a good content pipeline will keep hopes alive for broadcasters and exhibitors as well. Of course, they may also try to tap into the cricket crock of gold by broadcasting some matches live.

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R Sree RamMoneycontrol Pro