[The Korea Economic Daily] Expectations of a Performance Hole-in-One Driven by New Golfer Inflows and Overseas Business Growth

Citing analysis from SK Securities’ research center, The Korea Economic Daily reported that GOLFZON has continued its strong performance despite COVID-19, posting revenue of KRW 298.5 billion last year (up 21% year on year) and operating profit of KRW 51.6 billion (up 60%). It reported that, with the steady influx of new golfers including women, a virtuous cycle has taken hold in which the number of franchise stores grows and rounds played expand, ushering in a second heyday since 2020. It added that 2021 results are forecast at KRW 331.7 billion in revenue and KRW 71.2 billion in operating profit, representing year-on-year growth of 11% and 38%, respectively.

The Korea Economic Daily reported that SK Securities cited three upside factors for GOLFZON: an increase in rounds played following the lifting of operating restrictions, a narrowing of operating losses at directly operated GDR stores, and overseas business growth. It reported that the overseas business operates directly run stores in China, Japan, Vietnam, the United States and elsewhere, recording revenue of KRW 24 billion in 2020, and that the growth potential would be especially significant should the China business succeed.

The Korea Economic Daily reported that, on the back of its overwhelming domestic market share and stable cash flow, GOLFZON is securing long-term growth engines through its directly operated GDR stores and overseas business.