SingTel shares on the rise after F1 sponsorship renewal

[Ithunk]

SINGAPORE: Shares of telecom giant SingTel gained one per cent to S$3.00 on Tuesday on news that it has bagged the title sponsorship for the Singapore Grand Prix for another two years until 2012.

 

Analysts said the sponsorship will further boost the company's profile and could potentially bolster its share price as well going forward.

 

The sponsorship renewal follows the expiry of its initial three-year contract last month.

 

In a statement, SingTel said the Formula One race in Singapore has raised awareness and strengthened SingTel as a global brand.

 

Market watchers agree but warn that after three years, SingTel may have to re-inject some energy into the race experience and prevent any 'fan fatigue'.

 

Ben Flint, Head of Asia Pacific at sports and entertainment marketing agency Fuse said: "2010 felt flat in comparison to the initial euphoria of the first event in 2008 and the additional buzz created by F1 Rocks in 2009."

 

He added that not just SingTel but all stakeholders need to "dial up the energy".

 

SingTel seems to have this on their minds as well, announcing several 'firsts' for this year's Grand Prix.

 

For example, SingTel will be introducing a multi-platform viewing experience for this year's race, allowing fans to catch the race action anywhere - whether it is "live" on STAR Sports on mio TV Channel 115, online, or with their mobile devices.

 

SingTel did not reveal how much it forked out to renew the contract but previous media reports have speculated it paid between US$8 million and US$10 million.

 

Observers said this should not cause a dent to the company's coffers and will not have an impact on the telco's share price as it would have been factored in by now.

 

Wong Sui Jau, Managing Director of Fundsupermart, said: "SingTel generally has been growing and has actually expanded its regional footprint as well, so this is a good way to increase their brand awareness.

 

"So generally I think it is a good idea to keep up this kind of branding because you actually have to keep on continuing to spend money to achieve the constant awareness, because people's attention span tends to be very short."

 

source

http://www.channelnewsasia.com/stories/sin...1113740/1/.html

[Ithunk]

sweet more formula 1 to come

[Nf0rc3r]

1% is quite normal rite. may nt be due to F1?