Experience Co half yearly this morning following the recent guidance downgrade:
The growth on the prior period, has been driven by the full period contribution of the 1H18 acquisitions, in particular Big Cat, Tropical Journeys and Great Barrier Reef Helicopters (‘GBRH’).
Overall, with over 98% of our Adventure Experience business located in Far North Queensland our earnings have been impacted by record rainfalls in late 2018 and a softer tourism market, which is reflected in period on period decreases in airport arrivals (both domestic and international). Market commentary attributes a significant driver to be domestic airline capacity and ticket pricing, which is driving down the all important domestic incoming passenger volume, noting that Cairns international patronage often comes via other major Australian centres.
These factors were the primary drivers of the revised earnings guidance issued in February 2019, as these conditions continued into early 2019.
Many of the Cairns businesses were acquired during the previous corresponding period in 2018 so what we don’t get this time is a direct comparison as previously provided, Update on Experience , which flagged very modest comparative growth between peak dry season quarters for the FNQ components.
Perhaps we have a more savvy management with market responding positively to Bob East (ex Mantra CEO) exercising control.
I did log in to the results conference call but was cut off for another call. The results presentation is worth a look and has a trio of interesting graphs:
Not sure on the record rainfall with Cairns Aero 300mm short of the 2000 calendar record with Cyclone Steve the monthly record in February 2000. There is material for a rant post though on the way this has been presented and rainfall statistics.
Most interest is in that FNQ hotel occupancy from TTNQ. Dransfield Hotel Futures is a few months away and not sure when the next Accommodation Monitor from TRA is due. However this indicates that the growth in recent years occupancy has stalled and reversed. That is despite the reduced capacity during the period from the Crystalbrook transformation of the Tradewinds which was returned from December.