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Celebrating the World Cup by Partying On With Lifestyle and Entertainment Companies

“Olé, Olé, Olé!” The long awaited World Cup has finally kicked off in the wee hours of this morning! Be prepared for more sleepless nights and even more parties when you celebrate the wins from your favourite team. In the spirit of celebration, perhaps lifestyle and entertainment companies might be interesting to look at this season.

Celebrate with a penny?

Many of the lifestyle and entertainment-related companies in Singapore are tiny in size. In fact, a company like Lifebrandz (SGX: L20) can even be considered as a penny share given its market capitalisation of only S$23 million or so. Lifebrandz currently operates a few food & beverage outlets around Singapore that include watering holes like Mulligan’s Irish Pub and HopDog.

The entertainment and lifestyle business also seems to be a very competitive space as Lifebrandz has been unprofitable in three out of its last five completed financial years.

Party on with more

There used to be more lifestyle related companies listed in Singapore, such as Harry’s Holding and St. James Holdings (SGX: 5NH). The former, which runs a chain of bars, restaurants, and catering business under the Harry’s brand, had been taken private by a private equity firm back in 2012.

Meanwhile, the latter operates the St. James Power Station, a music and nightlife venue located just beside the Vivocity retail mall. Although it’s currently still a listed entity, St. James Holding is in the midst of a reverse takeover of Perennial China Retail Trust (SGX: N9LU) and Perennial Real Estate Holdings Pte. Ltd. The takeover would see St. James Holdings became a real estate outfit with predominantly China-based assets.

What do all these mean?

This means that although lifestyle companies struggle to compete in a saturated market like Singapore, they can sometimes turn out to be very good acquisition targets for other funds or companies. With Lifebrandz being one of the few entertainment and lifestyle companies left listed in Singapore’s stock market, could its fate be similar to its competitors mentioned above? Only time will tell. For now, let’s celebrate with the World Cup. Cheers!

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.