(E04656) Stock Price

Naruto Golf is a company whose primary business is the management and operation of an 18-hole golf course. In addition to operating the golf course itself, the company also manages an on-site restaurant and golf equipment shop, providing comprehensive services centered around the golf course.

The company's main revenue source is green fees from golf course play. In addition to this, food and beverage sales from the on-site restaurant and revenue from the pro shop selling golf equipment and merchandise are also important income streams. By providing comprehensive services to golf enthusiasts, the company diversifies its revenue base.

While the company operates a single business segment focused on golf course management, it has three revenue pillars within this segment: golf play operations, restaurant operations, and pro shop operations. These businesses complement each other, creating a structure that provides one-stop service to customers visiting the golf course.

Naruto Golf prioritizes securing a stable management foundation as its top priority amid the structurally challenging golf industry environment. In the recent period, the number of visitors increased by 426 (0.9% year-over-year), and operating revenue grew by 10.15 million yen (2.4% increase), achieving certain results. However, addressing long-term market contraction due to declining golf participation among young people and declining birth rates has become urgent. The company is pursuing a strategy focused on building a sustainable revenue structure rather than short-term performance recovery.

As key initiatives to improve profitability, the company is simultaneously addressing cost reduction—primarily in personnel expenses—and enhancing customer satisfaction. On the cost side, the company is advancing expense reduction through operational efficiency improvements, while continuing investment in course maintenance and facility upgrades to enhance the quality of customer experience. Facing these competing challenges, Naruto Golf has adopted a balanced strategy that optimizes operating costs while maintaining service quality, placing emphasis on improved customer satisfaction as a source of differentiation.

For new customer acquisition, the company is actively promoting customer recruitment through digital channels. It leverages major online booking platforms including Rakuten GORA, Golf Digest Online, and Jalan, focusing on developing and selling promotional packages. By increasing the frequency of various events and tournaments, the company simultaneously aims to increase usage frequency among existing customers and acquire new ones. In particular, through integrated online and offline customer acquisition initiatives, it is addressing structural challenges such as aging membership and increasing membership suspensions.

Regarding technological innovation, the company emphasizes expanding customer touchpoints through internet reservation systems. By shifting from traditional membership-focused operations to actively acquiring visitor customers through online channels, it is diversifying revenue sources. In facility upgrades as well, the company continuously improves modern facilities in response to changing customer needs, pursuing long-term competitive advantage while differentiating itself from competitors.