Accordia Golf Trust fiscal 3Q net profit rose 25 percent as better weather boosted player numbers

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Accordia Golf Trust reported its fiscal third quarter net profit increased 24.7 percent on-year to 3.21 billion yen (S$39.3 million or US$28.96 million) as improved weather helped to boost player numbers.

Revenue for the quarter ended 31 December increased 4.3 percent on-year to 14.39 billion yen, it said in a filing to SGX after the market close on Wednesday.

“Management’s effort to improve utilization rates at the golf courses and the improvement in weather conditions contributed to an increase in the number of players and operating days as compared to the third quarter in the previous financial year,” the trust said.

Other operating income climbed 69.1 percent on-year in the quarter to 235 million yen, mainly on compensation from an insurance company for weather-related damages to a golf course, Accordia Golf Trust said.

For the nine-month period, net profit fell 14.7 percent on-year to 5.95 million yen on revenue of 40.61 billion yen, down 2.0 percent on-year, Accordia said.

Operating income for the nine-month period was 41.08 billion yen, down 2.0 percent on-year, it said.

“The slight decline in operating income was due to poorer weather condition in the second quarter, which saw heavy rain in the western
region in July, heat waves in July and August, and multiple typhoons resulting in lower utilisation rates for the golf courses,” the trust said.

In its outlook, Accordia Golf said the market size for the country’s golf industry was declining.

“The number of golf players in Japan is likely to continue to decrease due to lower birth rate, aging population, and diverse lifestyles,” it said.

But it added that it was displaying a “strong presence in the shrinking market by leveraging on our economies of scale,” with a focus on generating stable profit from golfers over age 50, who are the majority of golfers.

Accordia Group has a 5.99 percent market share for golf in Japan, the second largest behind PGM Group, the company said. The trust had 89 courses as of the end of March 2018.

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