"Golfzon Reopening Avoided(X)... Golf Population Growth Ongoing"

[Asia Economy Reporter Park Soyeon] KB Securities analyzed Golfzon by stating that "the increase in the domestic golf population is ongoing" and that it "cannot be considered a reopening victim stock."

According to FN Guide on the 1st, KB Securities recently reported that "intensified competition among screen golf courses will stimulate the demand for conversion of non-affiliated business locations, which number around 4,000 to 5,000 nationwide, into franchise stores."

Golfzon recorded provisional consolidated sales of 153.9 billion KRW and operating profit of 50.7 billion KRW in the first quarter. These figures represent increases of 54.8% and 78.3%, respectively, compared to the same period last year.

It showed balanced growth across all sectors. The franchise business segment achieved sales of 76.6 billion KRW, growing 77.3% year-on-year. Despite the seasonal off-season, the number of franchise stores increased by 374, showing explosive growth.

Due to an increase in rounds and special sales, the non-affiliated segment also saw sales rise by 26.8% year-on-year to 25.1 billion KRW. The GDR business, which involves golf practice simulators, recorded sales of 29.4 billion KRW, growing 38.8%.

KB Securities evaluated that the indicators are as positive as Golfzon’s performance. The number of rounds in the first quarter reached 22.03 million. After surpassing 20 million rounds per quarter in 2021 Q3 with 20.29 million and Q4 with 20.65 million, it exceeded 22 million this year.

Golfzon’s integrated membership reached 3.9 million, an increase of 670,000 compared to the same period last year and 140,000 compared to the previous quarter.