It’s now 50 years of hurt for the England football team, but – as has seemingly been the case before every major tournament over recent years – there is the subtle belief that Roy Hodgson’s young and (largely) in form 23-man squad could do something special at this year’s European Championships. 
The greater probability, however, is that England will limp through their group at France 2016 before crashing out in the round of 16 – which will then be following by the usual scapegoating we see every two years.
Let’s hope that’s not going to be the case, of course, but at least some England fans may have some interest in the tournament (if the usual disappointment occurs) with Wales, Northern Ireland and the Republic of Ireland also competing…
For those that want a distraction from the actual football at Euro 2016, though, there are numerous UK-listed stocks that could see a positive impact from the tournament.
In this article, Trevor Green – manager of the Aviva Inv UK Opportunities fund – highlights the companies he thinks could see share price appreciation as a result of Euro 2016.
Performance of fund versus sector and index under Green
Source: FE Analytics
ITV
First and foremost, the manager says ITV – which will be showing England’s first game against Russia on Saturday – is well placed to benefit from the tournament despite its recent troubles.
“One company that has a clear interest in the tournament is ITV, which is sharing broadcasting duties with the BBC and will show two of England’s group stage games and some high profile ties for the other home nations,” Green said.
The FTSE 100 media company has had a tough year so far after seeing its advertising revenues fall substantially, a trend it blames on Brexit uncertainty. However, Green thinks the shares could rebound – especially if Hodgson gets England playing.
“After a tough start to the year, the football couldn’t have come at a more opportune time for the broadcaster. The increased number of games will enhance advertising revenue and, like the nation, ITV will be keeping its fingers crossed for England to progress well past the group stage.”
He added: “Certain advertisers really like football because there is a clearly defined profile to the audience, leading to some tension to secure prime half-time slots.”
ITV is Green’s fifth largest holding, accounting for 4.1 per cent of his fund’s assets.
EasyJet
Next up, Green thinks airline EasyJet can benefit from the increased travel to the tournament itself.
“With the Championships in France, this is the next best thing to a home championship for English and Welsh fans, with attendance in and around the stadiums expected to be high,” Green said.
“This should be good news for EasyJet, which is a clear number two to Air France in the French airline market. It will also be hoping that the threatened air traffic controller strikes don’t happen. Also, watch out for an Air France pilots’ strike, which EasyJet benefited from when it happened in 2014.”
Shares in EasyJet, like those in ITV, have fallen year-to-date (they are down 9.36 per cent in total return terms) owing to its losses of £24m for the first half of the year. However, an increased divided has seen the shares rebound more recently.
Performance of stock versus index in 2016
Source: FE Analytics
Green doesn’t count EasyJet as a top 10 holding, though, as the only UK fund that does is BlackRock UK Focus.
Greene King
Football and beer (unless you are in the ground itself) have tended to go hand-in-hand, especially over the summer months.
Therefore, while EasyJet may benefit from increased travel to the tournament, Green says this FTSE 250-listed stock is in prime position to benefit from fans who prefer their local to watch the games rather than travelling across the Channel.
“Pub chains, such as national operators like Greene King, will hope for a revenue boost, especially with the increased number of games but much will depend on the home nations’ progress,” Green said.
Shares in Greene King have rallied some 10 per cent over the past month or so before the tournament, with many other market participants expecting it to benefit from the tournament.
That being said, Green doesn’t count it as a top 10 holding in his Aviva Inv UK Opportunities and nor to many of his peers. Indeed, only funds managed by Premier and Unicorn have a significant proportion of their assets in the stock.
Dixons Carphone Warehouse
While investors may have guessed that a media, airline and pub company would benefit from Euro 2016, Green believes this less obvious company is well-positioned to take advantage thanks to its marketing department.
“One company that has embraced the tournament is Dixons Carphone, which as the UK’s largest electronics retailer could gain from a sales kicker and see its brand recognition improve,” he said.
“To tie in, it has launched the Ultimate Home of Football (UHoF), which is a touring Winnebago equipped with the latest 4K TV technology. The UHoF will showcase state of the art technology between games in various cities including London, Manchester, Belfast, Dublin and Cardiff, and will have plenty of experts on hand to interface with the public.”
Like the other stocks mentioned so far, shares in Dixons Carphone Warehouse have fallen over the course of the year.
Performance of stock versus index in 2016
Source: FE Analytics
However, its shares have witnessed somewhat of a revival over recent weeks (as the graph above shows) thanks to a recent announcement that its headline profit before tax for the year is expected to be towards to the top half of its previous guidance.
Again, Green doesn’t hold it as a top 10 holding but funds that do include Jupiter UK Growth and AXA Framlington UK Select Opportunities.
Bookmakers
Though Green doesn’t name any stocks in particular, he says UK bookmakers are likely to be impacted by Euro 2016 – either positively or negatively.
“Bookmakers will always see any major championship as an opportunity and this will be no different, as they look to sign up new customers and prompt existing ones via enticing and creative bets,” he said.
“The battle for market share between online and shops will be heated. After Leicester City’s triumph in the Premier league, having been quoted at 5,000 to 1, maybe a few punters will be enticed that it is Albania or Iceland’s turn to defy the odds.”
The two major listed UK bookies are William Hill and Ladbrokes.
Funds that are betting on William Hill to perform include M&G European Strategic Value and while the only fund to count Ladbrokes as a top 10 holding is Smith & Williamson Enterprise.