The owner of a golf-related leisure and entertainment business weathered a literally stormy third quarter.
Drive Shack generated $88.7 million in revenue in Q3 2022, a 16% increase compared to the same period last year. Its entertainment golf business — comprising both Drive Shack and Puttery venues — saw revenue reach $16.7 million for the period ending Sept. 30, a 47% uptick year-over-year.
- The company’s American Golf business posted $71.8 million in revenue, up 10% year-over-year.
- Drive Shack venues reported revenue of $10.1 million, down from $10.5 million in Q3 2021.
- The company attributed the decline in revenue to unfavorable weather.
- Puttery venues generated total revenue of $6.6 million in Q3 2022.
In September 2021, Drive Shack gained access to more than 130 million people who play mini-golf each year with the launch of Puttery — an indoor golf experience. Puttery opened its first venue in Texas and currently operates 11 locations, most recently with an opening in Chicago.
The mini-golf industry has an annual total revenue that exceeds $1 billion.
Puttery received an investment in 2021 from four-time golf major champion Rory McIlroy and his investment group, Symphony Ventures.
Symphony has committed at least $10 million for 10% ownership of each Puttery venue that opens through 2023.