Experience Co releases new earnings guidance and H1FY2019 unaudited results

Experience Co Limited (ASX: EXP) is an adventure tourism and leisure company, established in 1999, with operations across Australia and New Zealand. It has 18 drop zones in Australia and three in New Zealand for tandem skydiving. Besides, the company offers hot air ballooning in Australia and sea kayaking, white-water rafting, canyoning, along with boat tours to the Great Barrier Reef in North Queensland.

Recently on February 13th, 2019, the company released information highlighting updates on the revised guidance, executive leadership, trading as well as board changes.

As per the report, the unaudited financial results for H1 FY2019 include revenues at $ 84.3 million and $17.6 million of EBITDA. The Pax numbers, revenue and contribution from skydiving segment were marginally higher than the management’s internal forecasts. On the contrary, other adventure activities segments were lagging due to a couple of reasons like the decline in the international and domestic footfall accompanied by heavy rainfalls in the month of in December 2018. 

As for the Revised Earnings Guidance for FY2019, the business experienced softer trading environment along with severe weather conditions affecting volumes and earnings in the first two months, January and February 2019. The trend may continue in the upcoming months. Considering the recent disruptions, the management reviewed the future projections for the H2 FY2019 which includes estimated revenue between $ 155 million – $ 165 million and EBITDA between $ 30 million – $ 33 million.  The full Financial Report for the Half Year ended December 31st, 2018, is expected to be released on February 26th, 2019.

Looking back, the FY 2018 was a successful yet challenging year for the company. Through the year, Experience Co accomplished a couple of acquisitions including Byron Bay Ballooning, Blue Ocean Productions, Big Cat Green Island Reef Cruises, Wine Country Ballooning etc. as part of its strategic expansion program in North Queensland to enhance growth and improve the portfolio. Although the skydiving jumps were down relative to the FY2017, the revenue was up by 3% due to an increase in average revenue per jump, including photography product.

In 2015, Experience Co got listed on the Australian Securities Exchange (ASX) to support further growth of the company. It has a market capitalisation of AUD 147.29 million and approximately 555.81 million outstanding shares.  Prior to the announcement as mentioned earlier, the shares of the company were suspended from trading on the February 11th until February 13th, 2019. As the company began to trade again on the ASX on February 13th, with the close of market, the EXP stock was last trading at a market price of AUD 0.210, down by 20.755%, indicating an intra-day loss of AUD 0.055.

The stock price has a 52-week high of AUD 0.780 and a 52-week low of AUD 0.155. As per the last six months performance, the stock has mostly exhibited a downtrend and returned a negative yield of 48.04%. Also, it has generated a negative YTD return of 11.67%.


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