• Continued strong underlying earnings across the Group driven by revenue growth in both segments
• Skydiving segment benefited from improving booking levels, primarily driven by the return of inbound markets, and improved operating efficiencies
• Adventure Experiences segment revenue growth driven by Reef Unlimited and Treetops Adventures through both volume growth and improved average revenue per customer

Experience Co Ltd reported a strong Q2 FY25 trading update, with continued revenue growth across both the Skydiving and Adventure Experiences segments. The improved performance was driven by higher revenues, improved operating efficiency/leverage, and benefits of cost-out initiatives. The Skydiving segment continued to benefit from improving booking levels, primarily driven by the return of inbound markets, and improved operating efficiencies. The Adventure Experiences segment saw revenue growth driven by Reef Unlimited and Treetops Adventures through both volume growth and improved average revenue per customer, partially offset by softer accommodation volumes at Wild Bush Luxury. The company's unaudited year-to-date performance was significantly improved on the prior corresponding period, primarily due to continued growth in revenue of the Adventure Experiences segment as well as the company's focus on volume growth, cost-out initiatives, and operating efficiencies. The business was free cash flow positive for the year-to-date period.

The company did not provide any high-importance, price-sensitive forward-looking financial metrics in the announcement.

Management continues to work on the strategic priorities of earnings optimisation, sustaining trading momentum, portfolio quality and growth. Volumes across the business are expected to continue to benefit from the ongoing recovery of inbound markets, albeit the recovery is anticipated to continue to be more gradual than originally anticipated. The recovery of international tourism to Australia from China is expected to grow with China-Australia aviation capacity now at 104% of pre-COVID seats. Domestic trading conditions are expected to continue to be impacted by challenging macroeconomic settings, despite this demand for Adventure Tourism and Experiences remains resilient. Management's view on longer term earnings potential remains unchanged with the key sensitivity being the rate of return of international leisure tourists and performance of domestic markets.