Experience Co Q2 Revenue Climbs 14% Led by Skydiving and Adventure Segments

Strong Earnings Momentum in Q2

Experience Co Limited (ASX: EXP) has delivered a compelling trading update for the second quarter of fiscal 2025, showcasing a 46% increase in underlying EBITDA to $7.0 million. This performance was underpinned by a 14% rise in total revenue to $37.2 million, reflecting robust demand across its core adventure tourism segments despite a challenging domestic economic backdrop.

The company’s dual focus on skydiving and adventure experiences continues to pay dividends, with both segments contributing to the uplift. Notably, the Adventure Experiences division recorded a 20% revenue increase, driven by strong performances from Reef Unlimited and Treetops Adventure, while the Skydiving segment grew revenues by 8% year-on-year.

Skydiving Segment: Resilience Amid Operational Challenges

Skydive Australia volumes surged 12% compared to the prior corresponding period, even with two sites temporarily placed in care and maintenance. This volume growth, representing 64% of pre-pandemic levels for the quarter, was supported by the return of inbound tourists and improved booking trends. Skydive New Zealand faced a slight 2% volume decline due to adverse weather conditions but maintained steady revenue levels, buoyed by strong photo and video sales.

Operational efficiencies were a key highlight, with management successfully implementing initiatives to optimize asset utilization and reduce costs across the network. These efforts have enhanced load efficiencies, contributing to the segment’s improved profitability.

Adventure Experiences: Growth Fueled by Market Recovery and Pricing

The Adventure Experiences segment’s 20% revenue growth was primarily driven by Reef Unlimited and Treetops Adventure. Reef Unlimited benefited from a steady recovery in inbound tourism and domestic bookings, with average revenue per customer rising due to favorable product mix and price adjustments. Treetops Adventure saw a 23% volume increase, aided by school holiday timing and new site contributions, alongside an 11% rise in average revenue per customer.

However, Wild Bush Luxury experienced softer accommodation volumes, partially offset by increased walking tour participation. The segment continues to navigate the impacts of outbound Australian travel and a slower inbound market recovery.

Outlook: Gradual Recovery and Strategic Focus

Looking ahead, Experience Co anticipates volumes to continue benefiting from the gradual return of international tourists, particularly with China-Australia aviation capacity now exceeding pre-COVID levels. January trading trends indicate strong momentum, especially in Skydive Australia and Reef Unlimited, although weather remains a variable factor for some adventure sites.

Management remains focused on earnings optimisation, portfolio quality, and sustaining growth momentum. While domestic macroeconomic conditions pose ongoing challenges, the resilience of adventure tourism demand provides a solid foundation for future performance. The company’s positive free cash flow position further supports its strategic initiatives.