Experience on Watch

The skydiving tragedy last week in Mission Beach placed ASX listed Skydive The Beach (SKB) back on my radar. SKB is the operator of Skydive Australia which conducts the tandem skydives in Mission Beach and Cairns. SKB has built a model aggregating this activity to a dominant position in Australia and NZ.

I did look quickly at SKB some time ago when it diversified with a takeover of local icon Raging Thunder. Then promptly forgot about it. Subsequently it has acquired Reef Magic cruises and is now in the middle of acquiring GBR helicopters which is due to complete November 1st.

Quick back of the drink coaster calculations these three Cairns based non-skydiving businesses look like comprising about a third or more of group revenue based on current corporate configuration and available information. So SKB decided on a name change and this week is now Experience Co (EXP) to reflect a broader adventure tourism strategy.

I always like ASX listed entities for the transparency and regular reporting requirements which can provide useful information where the activities are material for the group. This is why I will miss Mantra Group when it is swallowed by the Accor octopus.

So Experience Co is now on my watchlist and look forward to their future results and commentary.

Note: This is not investment advice but general commentary related to Cairns. I do not have any holding in EXP. Good research or advice is essential.

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