Domino's effect is down to more than just a talent show

Published on Monday 12 July 2010 15:59

PIZZA delivery brand Domino's has revealed a strong start to its silver jubilee year, with a forecast-beating 28.6 per cent rise in profits to £17.5 million - driven by demand for its products during the World Cup.

The firm, which has 47 stores north of the Border, said hungry football fans had helped boost group sales in the six months to 27 June by 23.9 per cent to 91.3m.

Domino's, which was further helped by offers such as its Two for Tuesday promotion, placed adverts before key World Cup matches, as well as sponsoring entertainment show Britain's Got Talent for the third year.

Chief executive Chris Moore said: "It is easy to try and attribute our success to one thing - be it the weather, or Britain's Got Talent, or the World Cup - but the underlying trend shows a more compelling picture."

But Domino's, which remains on track to open 55 new stores this year, warned of much tougher sales comparisons in the second half of 2010.

The company has seen a boom in online orderings. In the UK and Ireland, internet orders grew by 61.4 per cent, accounting for 56.9m of business in the period and now generating almost 33 per cent of delivered sales. The number of new franchisees taking on stores in the past six months was slightly below 2009's level at six, while 19 stores opened in the first half of this year, against 23 in the same period last year.

Domino's, which holds the master franchise licence for the brand, opened the first store in Luton in 1985.

Chairman Stephen Hemsley: "For any business to reach its 25th birthday is quite an achievement, but to do so in the fast moving and competitive leisure sector is something of which the whole team at Domino's Pizza can be rightly proud."

Numis Securities upgraded its forecast for annual profits to 35.5m from 33.9m as a result of the positive figures, rating the company a "buy".