Experience Co Lifts Revenue as Adventure Experiences Offset Skydiving Weakness

Experience Co (ASX: EXP) increased its fourth-quarter sales revenue by 1% to $29.4 million as growth across Adventure Experiences offset softer trading at Skydive Australia.

Unaudited underlying EBITDA fell 31% to $2.0m as weather disruption, higher fuel costs, wage inflation, and additional promotional activity pressured earnings.

For FY26, continuing operations generated $129.6m in revenue, up 2%, while underlying EBITDA declined 8% to $17.6m.

Adventure Experiences revenue rose 5% during the quarter and 6% across FY26, contrasting with respective declines of 4% and 2% for the Skydiving segment.

Costs Weigh on Earnings

Softer April trading reflected weather impacts, while performance during May and June was broadly in line with the same months a year earlier.

Fuel costs increased from approximately 4% of group revenue before the Middle Eastern conflict to about 6.5% during the quarter, adding to wage inflation and operating expenses associated with disrupted weather.

Experience Co responded during FY26 with tactical promotional campaigns, targeted rate increases, a focus on customer ancillary spending and a group-wide cost-out program.

The continuing-operations figures exclude Wild Bush Luxury following completion of its divestment on 1 May 2026, with the full-year results remaining unaudited and subject to audit.

Sharp Skydiving Divergence

Skydiving revenue fell to $14.2m for the quarter from $14.7m a year earlier, and decreased to $63.8m across FY26 from $65.0m, while annual tandem passenger numbers eased to 117,000 from 119,000.

Skydive Australia recorded quarterly revenue and volume declines of 15% and 12%, although the falls narrowed to 9% and 6% respectively when the Melbourne and Yarra Valley sites were excluded.

Management consolidated its Victorian operations into the Great Ocean Road Drop Zone, placed the Melbourne Drop Zone into care and maintenance and permanently closed the Yarra Valley Drop Zone.

The Skydive Australia enterprise bargaining agreement is now subject to an intractable bargaining determination before Fair Work Australia, with the parties preparing to submit evidence over coming months.

Skydive New Zealand delivered 17% revenue growth and a 25% volume increase, while Experience Co agreed a non-binding term sheet with Inflite Group to divest its Australian and New Zealand skydive and aviation business and retain a minority interest.

Adventure Portfolio Drives Growth

Adventure Experiences generated quarterly revenue of $15.2m, up from $14.5m, while FY26 revenue increased to $65.8m from $62.3m.

Reef Unlimited revenue rose 4% as volume increased 3% and average revenue per customer gained 1%, with stronger demand for lower-priced experiences such as Fitzroy Island partly shaping the product mix.

Treetops Adventure achieved 8% revenue growth and a 10% volume increase, although average revenue per customer declined 3% as the new Canberra Networld attraction contributed a larger share of visitors.

Growth initiatives include the $4m Queensland Government Tourism Icons Investment Fund grant for Reef Magic IV, which is expected to enter service in December 2027, and the addition of West Beach Adventure to the Treetops Adventure portfolio in July.