Puma has posted record sales and earnings following the release of preliminary results for the company’s fourth quarter and FY2021. 

The German sportswear and shoe manufacturer generated $2.01 billion in sales in Q4 2021, up 14% compared to the same period the year prior. Puma’s full-year sales reached a record $7.7 billion, up from $5.8 billion in FY2020 — surpassing Wall Street estimates by over 25%. 

Puma’s record financial year is the result of strong global demand for its products despite supply chain constraints and COVID, as well as staff disruptions and shutdowns in Asia. 

Puma continues to lean on athlete partnerships to broaden the brand’s global reach. 

• Last September, Brazilian soccer superstar Neymar inked a long-term deal after a 15-year, $210 million deal with Nike ended following an allegation of sexual assault.
• In December 2021, the company signed 19-year-old Fort Lauderdale CF forward Romeo Beckham to a long-term partnership.
• The same month, it inked a deal with 2021 UEFA Men’s Player of the Year and Chelsea midfielder Jorginho. 

Emerging Competition 

Puma has gained momentum on its rivals Adidas and Nike, but still faces stiff competition like Anta in key markets.

Anta, the “Nike of China,” generated record revenue of $3.5 billion for the six months ending June 30, 2021, up 56% year-over-year.

MGM Resorts International and Entain are doubling down on their online betting venture, just as one of the biggest U.S. betting markets opens to mobile betting.

The companies are investing around $450 million in BetMGM this year, the online sportsbook that they own 50-50. The fresh cash will be deployed toward growth into new markets and new products.

BetMGM is not yet profitable, but with the launch of mobile betting in New York this month and more states opening up to sports betting, the companies are projecting confidence.

• BetMGM anticipates $1.3 billion in net revenue in fiscal 2022.
• The venture expects profitability the following year, based on its outlook for new markets. It is currently live in 19 jurisdictions for sports betting, with igaming offerings in four of those.
• The companies said that “BetMGM is achieving market share in line with its long-term target of 20% to 25% in U.S. sports betting and igaming.”

Launched in 2018, BetMGM earned $850 million in revenue in the past year, “ahead of management expectations and up nearly five times from the prior year,” according to BetMGM CEO Adam Greenblatt.

U.S. Expansion

Twenty-six states and Washington, D.C., have legal and operational sports betting, while three more allow it in a more limited form. 

Florida, the third-most populous state, is one of six that have legalized sports betting but have not yet launched it.

California plans to put sports betting on the ballot as a voter referendum this November.

Sports fans are now able to buy tickets for the FIFA World Cup Qatar 2022 in November, and the best seats are running around $1,600 each. 

The least expensive tickets will start around $70 for international travelers and $11 for Qatari residents – the cheapest since Mexico had $3 seats.

Ticket sales, which run until Feb. 8, will be a significant contribution to the $20 billion economic boost anticipated from hosting. Qatar is hoping to attract more than 1.2 million visitors for the World Cup, though the pandemic could affect that goal. 

If all goes well, the tournament could be the first global sporting event since the pandemic began, as international fans are not allowed at the 2022 Beijing Olympics next month.

Even then, the country is already facing a few non-pandemic-related tourism issues.

• Qatar previously said 90,000 rooms will be available for the public via a website, but the country expects 850,000 overseas visitors to need rooms. It’ll also require a two-night hotel minimum for the group stages.
• The country has leased cruise ships to accommodate more guests.
• Threats of boycotts have started over reported human rights abuses in the country.

Qatar has eight stadiums in a 30-mile radius of Doha.

Preparations In Qatar

Despite the scarce accommodations, Qatar is reportedly spending $300 billion on building costs including a new stadium, metro station, and expanded airport — initiatives the government says it was already committed to.