Topgolf Sales Plunge Amid Consumer Spending Squeeze, Callaway Considers Spin-Off
Callaway Golf Company, the owner of Topgolf, has initiated a strategic review of its investment in the entertainment business.
Topgolf's sales have taken a hit as consumers tighten their belts, leading to a decline in corporate events at its venues.
The company attributed the three-bay revenue drops to fewer corporate events being held at the venues, and the company's recent acquisition of Topgolf for US$2 billion may now be in jeopardy.
CEO Chip Brewer remains convinced Topgolf has significant future opportunity, but the company's recently released 2022 earnings report shows a different picture. The report shows that Topgolf locations, Toptracer technology, and media have all seen a decrease in revenue.
Golf giant Callaway acquired the rest of sports entertainment company Topgolf in an all-stock deal valued at US$2.65 billion in 2021. However, the company's investment in Topgolf has not paid off as expected, and the company is now considering a spin-off.
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