Topgolf Callaway Brands Ord Shs Stock Price, News & Analysis

Topgolf Callaway Brands Corp. (NYSE: MODG) has entered a multiyear strategic agreement with Golf Saudi Entertainment, to expand its brand presence in Saudi Arabia. The deal includes:

1. Golf Saudi plans to build three Topgolf venues by 2028, with an option for two more.
2. Callaway Golf, Odyssey, TravisMathew, and Ogio become official equipment and apparel brands for Saudi national golf teams and professionals.
3. Golf Saudi becomes the exclusive distributor of Callaway Golf, Odyssey, and Ogio products in Saudi Arabia.

This partnership aims to strengthen Topgolf Callaway Brands' global presence and contribute to Saudi Arabia's development as a golfing nation.

Topgolf has broken ground on a new two-level venue in Panama City Beach, Florida, set to open in summer 2025. This will be Topgolf's 10th venue in the state, located adjacent to Pier Park. The facility will feature 74 outdoor climate-controlled hitting bays equipped with Toptracer technology, a full-service restaurant and bar, a 22-foot video wall, and over 140 HDTVs. The venue will employ 275-300 Playmakers and aims to cater to both locals and tourists in the popular Emerald Coast area. Mayor Stuart Tettemer welcomed Topgolf's investment, highlighting its potential to enhance the city's entertainment options and provide family-oriented fun.

Topgolf Callaway Brands Corp. (NYSE: MODG) has announced plans to separate into two independent companies: Callaway, a leader in golf equipment and active lifestyle products with $2.5 billion in revenue, and Topgolf, a high-growth golf entertainment business with $1.8 billion in revenue. The separation, expected to be completed in the second half of 2025, aims to create two focused entities with distinct investment opportunities and capital allocation strategies.

The company intends to spin off at least 80.1% of Topgolf to shareholders in a tax-free transaction. Callaway will retain all existing financial debt, while Topgolf will have no financial debt and a significant cash balance. Both companies are expected to generate positive free cash flow and maintain strong market positions.

Topgolf is set to open its fourth venue in North Carolina on September 13, 2024, located in Greensboro at 609 Guilford College Road along I-40. The two-level facility will feature 72 climate-controlled hitting bays equipped with Toptracer technology. This marks Topgolf's 102nd global outdoor venue.

The venue will employ approximately 300 Playmakers and offers a full-service restaurant, bar, and entertainment options. It includes a 28-foot video wall, over 200 HDTVs, and a private event space with a rooftop terrace. Topgolf Greensboro aims to provide a relaxed environment for both golf enthusiasts and beginners, featuring games like Block Party designed to level the playing field.

Topgolf, a modern golf entertainment leader, is set to open its first venue in Iowa on September 6, 2024. The Topgolf Des Moines facility, located at 7655 Mills Civic Parkway in West Des Moines, will be the company's 101st global outdoor venue. The two-level facility features 72 climate-controlled hitting bays equipped with Toptracer technology, a full-service restaurant and bar, and various entertainment options.

The venue will employ approximately 300 'Playmakers' and aims to make golf accessible to players of all skill levels. It offers unique games like Block Party, lessons through the Coach program, and the option to use professional-grade clubs. The facility also includes a 22-foot video wall, over 100 HDTVs, an outdoor patio, and semi-private event rooms for various gatherings.

Callaway Golf has unveiled its new line of Apex Irons, featuring the Apex Ai200, Apex Ai300, and Apex Ti Fusion models. The Ai200 and Ai300 are forged irons with Ai Smart Face technology, offering exceptional distance, feel, and spin control. The Ai200 is a players distance iron with a hollow-body design, while the Ai300 is a game-improvement iron with a cavity-back design. Both models incorporate a Forged 455 Face Cup for outstanding speed and Tour-level sound. The Apex Ti Fusion is an ultra-premium iron with an industry-first forged titanium face for increased power. All models will be available at retail starting August 23, with the Ai200 and Ai300 priced at $1,400 for a 7-piece set, and the Ti Fusion at $2,100.

Topgolf Callaway Brands reported its Q2 2024 results with a net income of $62 million, a non-GAAP net income of $83 million, and adjusted EBITDA of $206 million, all exceeding expectations. However, consolidated revenues dropped by 1.9% YoY to $1,157.8 million, leading to a downward revision in the full-year revenue outlook to $4,200-$4,260 million and adjusted EBITDA to $570-$590 million.

The company faces headwinds including high inflation and negative FX trends. Despite these, it maintained its #1 U.S. market share in various golf equipment categories. A strategic review of Topgolf is underway, considering both organic growth strategies and potential spin-offs.

Segment-wise, Topgolf revenues grew by 5% to $494.4 million, while Golf Equipment and Active Lifestyle segments saw declines of 8.2% and 3.2%, respectively.

The company made a discretionary $50 million debt repayment and saw a cash flow improvement of $173 million in the first half of the year.

Topgolf, the modern golf entertainment leader, has introduced The Sure Thing, a new golf club designed to make golf more accessible and enjoyable for novice players. Developed in collaboration with Callaway engineers, this club features an enormous club face, a 20° loft, and a shorter club shaft to increase the likelihood of hitting the ball solidly into the air.

The Sure Thing is not for sale and is exclusively available for gameplay at Topgolf venues in the United States. Topgolf CEO Artie Starrs emphasized that the club's purpose is to bring joy through more ways to play golf and help new players experience the thrill of hitting a solid shot. The company playfully mentions its proprietary 'chicken wing technology' as a unique feature of the club.

Topgolf Callaway Brands Corp. (NYSE: MODG) has announced the upcoming release of its second quarter 2024 financial results on Wednesday, August 7, 2024, after market close. The company will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to discuss the results, business performance, and future outlook.

Investors and interested parties can access a live webcast and presentation through the Investor Relations section of the company's website at https://www.topgolfcallawaybrands.com. A replay of the event will be available online approximately two hours after its conclusion.