More than a metre of rain in peak tourist season has hit Experience Co’s forecast, share price
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Beautiful one day, underwater the next – it’s not been a good summer to run an outdoor adventure business in Northern Queensland.
Experience Co has just downgraded 2018’s full year earnings forecast by 19 per cent, as the floods in Queensland ruined the summer tourist season.
But they are not just your regular FNQ flood – yet. In a release to the AXS, Experience Co notes the Kuranda weather station saw 1125mm of rain in December.
The average since records began in 1896 is 189mm.
The double whammy is that not only did the freak rain hit right at the start of the holiday season, generally, international and domestic visitation numbers to the region were “softer than anticipated”.
Revenue is set to fall by as much as 12 per cent.
Not entirely surprisingly, the company’s stock took a hit in early trade but has since started climbing back.
Compounding shareholder jitters was news the company’s CEO Anthony Ritter had resigned.
Founder Anthony Boucaut is also resigning as managing director, but plans to play an active role in the business in the short term and stay on in an advisory capacity until Experience Co finds a new CEO.
“I would like to thank Anthony Ritter for his significant contribution and commitment to the business over the last eight years, in particular, the growth of the business since the IPO in 2015,” Mr Boucaut said.
“After 20 years leading the company at an executive level and the approaching 20th anniversary of the company’s 1st skydive at its original location in Wollongong, I am excited to continue my involvement on the board … as it embarks on the next phase to achieve its vision to become the largest and most respected adventure tourism company in the world.”
The company has just acquired a new CFO and a manager of corporate development.
The half year report is due on February 26.