Experience Co (ASX: EXP) focuses on optimising operations to improve margins

Highlights

• Experience Co is a adventure tourism company which offers its services across New Zealand and Australia
• In 3QFY24, EXP’s sales revenue increased by 24.56% YoY to AUD 35 million
• Boucaut (Anthony Penn) has the maximum take in the firm with a shareholding of 23.13%

Experience Co Limited (ASX:EXP) is an Australian adventure tourism company, which offers an array of thrilling activities designed to create unforgettable experiences. With a focus on delivering high-quality adventure, EXP provides a wide range of exciting options, including tandem skydiving, indigenous cultural excursions, and vacations to the Great Barrier Reef.

In the third quarter of the financial year (3QFY24), the company reported 24.56% YoY increase in the sales revenue to AUD 35 million driven by continuous improvement in business and volume in Reef Unlimited and Skydive segments. The period saw 25.78% YoY rise in Adventure Experiences’ revenue on the back of solid trading for Reef Unlimited.

Underlying EBITDA in 3QFY24 surged by 104.17% YoY to AUD 4.90, underpinned by higher revenue and increase in operating leverage.

Top 10 shareholders of EXP

The top 10 shareholders of EXP have around 74.65% shareholding in the company, while the top four have 59.75% of the shareholding. Boucaut (Anthony Penn) and Richmond Hill Capital Pty. Ltd. have the highest stakes in the group with a shareholding of ~23.13% and ~14.81%, respectively.

Recent business update

Through an ASX update dated 9 July 2024, the company notified that 1,750,471 performance right lapsed on 28 June 2024 as the conditions required to exercise these rights were not satisfied

Outlook

The company informed that the operating momentum seen in 3QFY24, continued in April. In April, all operating segments saw volume consistent with New Zealand and Australia school holiday trading.

The management focus is on optimising operations to enhance margin performance, more gradual return of inbound markets and balancing the availability of operating capacity for volume recovery.

Share performance of EXP

EXP shares closed 5.88% lower at AUD 0.16 apiece on 16 July 2024. In the last one year, EXP’s share price has dropped by 27.27%, and in the last three months, it has surged by almost 14.29%.

The 52-week high of EXP is AUD 0.255, recorded on 10 August 2023, while the 52-week low is AUD 0.125, recorded on 24 May 2024.

EXP Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 16 July 2024. The reference data in this report has been partly sourced from EODHD/Others.

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