Domino's Pizza First-Half Profit Gains on Weather, World Cup

Domino’s Pizza U.K. & Ireland Plc, the U.K.’s biggest pizza-delivery company, said first-half profit rose 30 percent, helped by World Cup soccer matches and sponsorship of the “Britain’s Got Talent” television show.

Net income increased to 12.06 million pounds ($18 million), or 7.62 pence per share, in the six months ended June 27, from 9.3 million pounds, or 5.93 pence per share, in the year-earlier period, the Milton Keynes, England-based company said today in a statement on the Regulatory News Service.

Domino’s was helped as customers watched World Cup matches at home on television, plus a “Two for Tuesday” advertising campaign that started last August. Second-quarter gains in sales at stores open at least a year of 17 percent were “spectacular,” said Paul Hickman, a KBC Peel Hunt analyst.

“Three factors contributed to this overperformance,” wrote Hickman, who has a “buy” recommendation on the shares. “The continued success of the ‘Two for Tuesday’ promotion, the third year of sponsorship of ‘Britain’s Got Talent,’ and the World Cup.”

Domino’s rose 3 pence to 406 pence at 9:06 a.m. in London. The shares have increased 36 percent so far this year, giving the company a market value of 653 million pounds.

Same-store sales will slow in the second half due to comparisons with last year’s Tuesday promotions, Chief Financial Officer Lee Ginsberg said in a telephone interview.

He said analysts are “penciling in” second-half increases of 4 percent, and “I’m hopeful we can beat that.”

In August, Domino’s will start advertising its lunch menus, plus new oven-baked submarine sandwiches, he said.

In February, Domino’s boosted its store-opening plans to 55 a year from 50, as it seeks to have 1,200 outlets by 2021. In May, it opened a supply depot in Milton Keynes that it says will save 1 million pounds a year in costs.

Internet sales increased 61 percent in the half, to 56.9 million pounds, the company said.

To contact the reporter on this story: David Altaner in London at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.