Drive Shack, owner of golf-related leisure and entertainment businesses, generated $69 million in revenue in Q1 2022, up from $61 million for the same period last year.
The results were driven by Drive Shack’s American Golf segment, its traditional golf business, which posted $54.6 million in revenue in Q1, a $1.8 million increase compared to Q1 2021.
The company’s entertainment golf business, which includes Drive Shack venues and indoor golf experience Puttery, generated $14.2 million in revenue during the quarter, a 72% increase compared to the same period last year. Despite the favorable growth, Drive Shack reported a net loss of $18.9 million in Q1 2022, up from a loss of $10.9 million in Q1 2021.
- Its two Puttery locations generated $4.4 million in revenue in Q1 2022.
- Drive Shack venues reported a $1.6 million increase in revenue compared to Q1 2021.
Drive Shack has announced plans to invest in the development of new Puttery venues, and the company is on track to open seven locations by the end of 2022. In June, Drive Shack will open a Puttery in Washington, D.C., with venues coming to Houston and Chicago in Q3 2022.
In July 2021, four-time golf major champion Rory McIlroy and his investment group, Symphony Ventures, invested in Puttery. Symphony has committed at least $10 million for 10% ownership of each venue that opens through 2023.
More than 130 million people play mini-golf each year, and the industry’s annual revenue exceeds $1 billion.