Plunging toward profits

ADVENTURE tourism business Experience Co has made solid progress towards profitability, posting a $4.8 million loss for the 12 months to 30 Jun.

The result was a marked improvement on the $39.7 million loss recorded during the same period last year, with CEO John O’Sullivan stating the core life signs of the business showed cause for optimism for the future.

“We continue to see domestic demand exceed expectations when we are able to operate, and pleasingly this demand accelerates as markets reopen,” he said.

“Seeing out the FY21 year without a need to raise capital while maintaining the earnings capacity of the business is an achievement of which we are extremely proud.”

In terms of the business’s liquidity, the latest financial reporting shows the company has $13.3 million of cash in the bank, while its outstanding $2.8 million of net debt was also reduced by 70% on FY20 volumes.

Experience Co was also buoyed by the future growth prospects of recent acquisitions Wild Bush Luxury and The Maria Island Walk (TD 20 Apr), purchases the company believes have improved the depth and quality of its asset portfolio in the domestic market, tipped to be fastest to recover when travel resumes.

Revenue from its Great Barrier Reef brands saw $14.2 million generated, while the company’s skydiving arm brought in $28.8 million, both divisions down by around half on the previous corresponding period.

Looking forward, Experience Co said it anticipates its earnings to be impacted by Delta in Q1 of 2021/22, while its summer peak’s success will depend on the timing of eased travel restrictions.