Accordia Golf Trust reported on Monday that its fiscal first quarter net profit fell 2.4 percent on-year to 2.391 billion Japanese yen, or around S$29.82 million or US$21.66 million, as its courses saw fewer visitors.
Revenue fell 1.5 percent on-year in the quarter to 14.29 billion yen, with golf course revenue down by 1.6 percent at 9.79 billion yen, restaurant revenue off by 0.7 percent at 3.49 billion yen and membership revenue falling 8.1 percent on-year to 1.01 billion yen, it said in a filing to SGX after the market close on Monday.
Operating profit fell 3.6 percent on-year to 3.086 billion yen in the quarter ended 30 June, while operating income fell 1.1 percent on-year to 14.41 billion yen, it said.
“The decrease was primarily due to a decline in the number of visitors in May and June 2018. Revenue for April 2018 was favorable and steady,” Accordia Golf Trust said. “In May 2018, certain AGT golf courses did not perform up to peak season expectations due to unfavourable weather on weekends. In addition, an earthquake around Osaka area in June 2018 forced certain AGT golf courses to halt operations.”
The trust was cautious on its outlook, noting that the market size of Japan’s golf industry declined to 870 billion yen in 2017, from 874 billion yen a year earlier.
“The number of golf players is likely to continue to decrease due to lower birth rate, aging population, and diverse lifestyles,” it said.
But it added that the trust had a “strong presence in the shrinking market leveraging on its economies of scale,” and that it focused on generating stable profit from senior golfers over age 50, who are the majority of golfers.