Experience Co. predicts “unpredictable level of volatility” in FY21 following $51.4m loss

Experience Co. predicts “unpredictable level of volatility” in FY21 following $51.4m loss

ASX-listed adventure travel company Experience Co. has warned shareholders to brace for an “unpredictable” FY21 after posting a $51.4m loss for the last financial year.

Experience Co. pinned the loss on unprecedented adverse trading conditions, asset impairments of $35.7 million, the impact of discontinued operations, and one-off restructuring costs associated with the company’s all-but-completed strategic review.

Overall revenue from continuing operations fell 32.8 per cent to $87.4 million during FY20, while earnings before interest, taxes, depreciation and amortisation dropped 67.9 per cent to $5.2 million.

On a more positive note, Experience Co. managed to reduce its net debt from $29.4 million in FY19 to $9 million in FY20, driven by the divestment of non-core assets such as its helicopter, canyoning and ballooning businesses.

The company said its cost-saving program and rapid response to pandemic mitigated the impact of the extreme adverse conditions in the period, which included the suspension of all operations from 23 March 2020 until late May/early June.

Experience Co. also noted “encouraging” signs from July 2020 trading, with underlying earnings breakeven for the first time since recommencement of operations, aided by support via JobKeeper and from landlords.

“With operations suspended in March 2020 we had to stand down over 90 per cent of our workforce,” CEO John O’Sullivan said.

“The group is thankful for the efforts of governments at all levels in both Australia and New Zealand in providing us with assistance, in particular the JobKeeper and NZ Wage Subsidy programs, mitigating what was potentially a catastrophic impact on the company and the livelihoods of our team members.”

However, with international borders closed for the foreseeable future and the uncertainty around unrestricted travel in Australia, Experience Co. expects trading conditions to continue to be subject to an “unpredictable level of volatility” during FY21.


Featured image source: Facebook/Skydive Australia

Latest News

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]