Tourism giant shrinks
Experience Co to sell off six non-marine companies
EXPERIENCE Co bosses have not put a timeframe on how long it will take to sell six of its subsidiaries and lauded the decision as “positive” for the Far North.
A four-month review which started in August culminated in the tourism giant excising any companies which don’t align with a new vision to be a “great marine business”.
The business announced it would sell off GBR Helicopters, Raging Thunder Adventures, Byron Bay Ballooning, Cairns Canyoning, RnR White Water Rafting and its 15 per cent stake in the Respax.com tour management platform.
Experience Co bought GBR Helicopters and Raging Thunder Adventures just two years ago.
The ASX-listed adventure tourism company, formerly known as Skydive the Beach Group, will keep its skydiving and Far North Queensland experience businesses including Fraser Island Adventures, Dreamtime Dive & Snorkel, and Big Cat Green Island Reef Cruises.
Chief executive John O’Sullivan said the company was “simply not the right owners” for the entities.
“I think (the sales are) going to be really positive for the region and the business,” he said.
“As we’ve gone through our review, we’ve decided they’re not something core to what we do and our capabilities. We think with all the investment we’re making in North Queensland, we’re still in a pretty strong position.”
Experience Co will continue running the six businesses until new buyers are found and Mr O’Sullivan said employees would be “looked after”.
“We really believe in Cairns and the Great Barrier Reef and they’re all great businesses, we just want to focus on being a great marine business,” he said.
Mr O’Sullivan would not be drawn on whether he thought Experience Co expanded too quickly.
“It’s not for me to judge, we’re focusing on the business as it is today and where we want to take it. There’s no use going over what’s happened previously,” he said.
Passenger numbers were down 10 per cent in the first quarter for Experience Co, while GBR Helicopters lost a key customer contract in April.
The soon-to-be divested businesses contributed $4.3 million in earnings before interest, tax, depreciation and amortisation, compared to $26.2 million for its skydiving operations and $8.1 million for its Reef experiences.