Experience Co Faces $3.1M Goodwill Impairment Amid Dividend and Buy-Back

Robust Financial Performance Amid Market Challenges

Experience Co Limited (ASX – EXP), a leading adventure tourism operator across Australia and New Zealand, has delivered its strongest financial results since FY19, reporting a 6% increase in revenue to $134.3 million for the year ended 30 June 2025. Underlying EBITDA surged 34% to $19.3 million, reflecting disciplined operational execution and growing demand for adventure experiences despite ongoing economic headwinds and weather disruptions.

The company’s Skydiving and Adventure Experiences segments both contributed to this growth, with Skydiving revenue rising 6% to $65 million, driven by increased customer volumes in Australia and New Zealand. Adventure Experiences revenue grew 7% to $69.3 million, supported by strong performances from Reef Unlimited and Treetops Adventure, even as weather impacts affected some operations in the second half of the year.

Strategic Investments and Operational Efficiencies

Experience Co continued to invest in its core assets, notably commissioning the new vessel Aquarius II for Reef Unlimited, which has exceeded expectations since its April 2025 launch. The company is also expanding its Treetops Adventure Canberra site with new zipline and Networld attractions, capitalizing on strong domestic demand.

Management’s focus on site efficiencies and cost control has enhanced operating leverage, converting revenue growth into improved cash flows. The Group reported cash and cash equivalents of $11.1 million and maintained net debt at $10.9 million, supported by a multi-year secured debt facility with Commonwealth Bank of Australia.

Goodwill Impairment and Dividend Declaration

While the overall underlying net profit after tax was $2.1 million, the statutory result showed a net loss of $975,000 due to a $3.1 million goodwill impairment related to the Wild Bush Luxury segment. This impairment reflects ongoing challenges from increased overseas travel by Australians and higher domestic airfares to key access points.

In a positive signal to shareholders, the Board declared a fully franked dividend of 0.25 cents per share, payable on 26 September 2025, and commenced an on-market share buy-back program of up to 10% of issued capital, underscoring confidence in the company’s financial position and future prospects.

Outlook and Market Position

Experience Co remains optimistic about FY26, anticipating continued growth driven by inbound tourism recovery and improving domestic economic conditions, including recent interest rate cuts by the Reserve Bank of Australia. The company is not providing formal earnings guidance but emphasizes ongoing operational discipline, capital efficiency, and capturing demand in the adventure tourism sector.

With a diversified portfolio spanning skydiving, reef tours, luxury lodges, and aerial adventures, Experience Co is well positioned to leverage Australasia’s natural attractions and growing appetite for experiential travel.