SOUTH AFRICA: FOOTBALL / SOCCER - WORLD CUP 2010 - Puma CEO sees African business expanding

Record ID: 455301

  • Title: SOUTH AFRICA: FOOTBALL / SOCCER - WORLD CUP 2010 - Puma CEO sees African business expanding
  • Date: 24th June 2010
  • Summary: PICTURE OF FOOTBALL FANS
  • Embargoed: 9th July 2010 13:00
  • Keywords:
  • Location: South Africa
  • Country: South Africa
  • Topics: Sports
  • Reuters ID: LVAE6HE58H1JS4D479SB2QNNAXO
  • Story Text: German sporting goods maker Puma sees good prospects in Africa and expects the World Cup to boost sales of its soccer business, Chief Executive Officer Jochen Zeitz said on Wednesday (June 23).
    Puma, the world's No. 3 behind U.S. sporting giant Nike and German rival Adidas equips seven teams - including Italy- in the World Cup currently taking place in South Africa.
    Puma also sponsors four African countries that are taking part in the tournament, Algeria, Ghana, Cameroon and Ivory Coast.
    Zeitz said in an interview that Puma's business in Africa has been growing consistently since the group first entered the African market, with South Africa being the main market.
    "We have been growing our business (in Africa) in double-digits ever since we entered Africa. Obviously South Africa is our most important market but we are also gradually increasing our presence throughout East and West as well as North Africa. It is a continent with a lot of potential which we plan to tap into," Zeitz said.
    Puma first entered the African market in 1997 after it signed the Cameroon soccer team.
    Zeitz said the group expected increased sales for its soccer business due to the World Cup but did not give a figure.
    " "Our soccer sales definitely will increase this year and from that perspective the World Cup will be a success. Every time there is a World Cup, it has an impact on our soccer business and we have seen this year as well," he said.
    Zeitz said earlier this month the company still believed it had the long-term potential of generating sales of more than 4 billion euros despite the impact of the global financial crisis.
    Puma's revenue last year was 2.5 billion euros, when net earnings almost halved and missed analysts' expectations as the recession restrained consumer spending and cut household budgets.
    South Africa's hosting of the World Cup has dispelled concerns that the country will not be able to cope with the event and may increase the chances of Africa hosting the Olympic games, Zeitz said.
    "I think South Africa has shown it can host such a big event as the World Cup, so why not hold the Olympics at some point in Africa? Maybe not just in one country but in a host of countries".
    "South Africa has proven, and is very successful. The passion, the energy of the people and the colourfulness of Africa certainly bodes well for the Olympic games too," Zeitz added.
    Ghana is the only African team that is still in the World Cup, carrying the continent's hopes.
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