Last Year's Sales 617.5 Billion KRW... 40.2% Increase YoY
Largest Performance Since Founding Including Holding Company
Strengthening Overseas Markets with Opening of New York Social Store No.1
Starting with screen golf, Golfzon Newdin Group, which has built a 'golf kingdom' in both online and offline businesses, achieved record-breaking performance last year along with the accomplishment of entering the '1 trillion won sales club' for the second consecutive year. This is the result of a significant increase in the golf population after COVID-19 and a steady rise in golfers using related infrastructure. Attention is focused on whether the group will continue its 'quantum jump' this year, leveraging overseas markets in the post-COVID era.
Visitors are exploring the Golfzon booth at CES 2023, the world's largest electronics and IT exhibition. [Photo by Golfzon]
Golfzon announced on the 28th that its consolidated sales last year were tentatively estimated at 617.5 billion won, a 40.2% increase compared to the previous year. Operating profit rose by 38.1% year-on-year to 148.7 billion won. Golfzon Newdin Holdings, the holding company of Golfzon Newdin Group, also recorded sales of 486.1 billion won last year, up 16.4% from the previous year. Operating profit during the same period increased by 25.5% to 91.8 billion won.
The combined sales of Golfzon Newdin Holdings and Golfzon last year amounted to 1.1036 trillion won. After entering the 1 trillion won sales club for the first time since the company's founding in 2000 with sales of 1.1269 trillion won in 2021, the group achieved meaningful results for two consecutive years. Golfzon Newdin Group is a golf-specialized company consisting of 47 affiliates, including three listed companies: Golfzon Newdin Holdings, Golfzon, which operates the screen golf business, and Golfzon Deka, specializing in golf rangefinders. When adding Golfzon County, which operates 18 offline golf courses, the group's sales last year are expected to exceed 1.4 trillion won, marking an all-time high. Golfzon County's sales in 2021 were 268.9 billion won.
Golfzon explained, "Sales of hardware in franchise and special sales, golf practice simulators (GDR), and overseas sectors increased," adding, "Sales from online services due to an increase in rounds and sales from subsidiaries such as Golfzon Deka and Golfzon CM also rose."
As golf became recognized as a relatively safe leisure activity from infectious disease risks, the number of participants increased significantly, and those interested in golf frequently visited screen golf centers, which have relatively lower cost burdens. The annual sales of Golfzon, the group's core company, jumped 2.5 times from 247 billion won in 2019 to 617.5 billion won in three years. The number of nationwide franchise stores of Golfzon Park, a screen golf game center, also increased by nearly 400 from 1,768 in 2021 within a year.
'Golfzon Park' stores operated by Golfzon through its screen golf franchise business [Photo by Golfzon]
Moreover, screen golf simulators are gaining attention in overseas markets, which is expected to strengthen Golfzon's growth momentum. The global market research firm Straits Research recently reported that the worldwide golf simulator market is projected to grow from $1.3155 billion (approximately 1.73 trillion won) in 2021 to $3.38 billion (approximately 4.45 trillion won) by 2030, at an average annual growth rate of 10.1%.
Golfzon currently operates about 830 stores worldwide, including approximately 400 in Japan, 200 in China, 100 in the United States, 40 in Vietnam, and 90 in other countries. Global sales also increased from 26.2 billion won in 2020 to 51.9 billion won in 2021. Last year, sales reached 75 billion won, increasing by more than 20 billion won annually. Among these, sales in China rose by 31% year-on-year to 21.6 billion won, and Japan expanded its market size with sales of 19.5 billion won.
According to the National Golf Foundation (NGF), in the United States, the world's largest golf market, the number of people who prefer screen golf only (12.4 million) has reached a level similar to those who enjoy field golf only (12.6 million). In response to this change, Golfzon opened its first social store in New York, USA, on the 21st in partnership with global golf management company Trune. At this location, customers can enjoy food prepared by famous chefs, cocktails, and beer while playing golf in a lively pub atmosphere and receive lessons from PGA professionals. Another store is planned to open soon in New York. Additionally, Golfzon plans to expand overseas product sales by launching the portable golf shot monitor 'Wave,' introduced at CES 2023, in the United States this year.
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