Skydive Wanaka helps Aussies lift NZ revenue by 362%

Skydive Wanaka was bought for $10.4m in July 2016. Credit: Skydive Wanaka

Skydive the Beach reported an 84% surge in its half-year pre-tax profit boosted by its New Zealand acquisitions including Skydive Wanaka, which it bought in July last year.

The Australian-listed adventure tourism and leisure group posted a net profit before tax of A$5.1m (NZ$5.4m) in the six months to 31 December.

The Wollongong-based company said its earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose by 82.2% on the previous corresponding period to $8.2m on the back of a 59.1% hike in revenue to $39.1m.

The acquisitive group’s results presentation noted that tandem skydives at Skydive Wanaka were up 18.3% on historical numbers following its purchase for NZ$10.4m in July last year.

It followed this up with the NZ$500,000 acquisition of Performance Aviation Limited, an aircraft and helicopter maintenance business, based in Wanaka.

It already owned Queenstown-based Skydive Queenstown Limited Group running both NZONE and Skydive Paradise having purchased it for NZ$17m in October 2015.

SKB’s presentation showed that revenue from its NZ operations was up 361.5% from the same period last year from $2.5 to $12m.

Organic revenue growth – comparing operations in 1H17 that formed part of SKB operations during 1H16 – showed a 10.1% uptick in revenue in NZ.

NZ EBIDTA rose 260% from $1m to $3.6m, while organic growth clocked in at 13.7%.

Across all its skydiving operations, including Fraser Island, Bribie Island, Noosa in Australia, booking were up 54.3%, reflecting 27.3% organic growth.

Tandem skydives rose 54.7% on 15.1% organic growth split between 16.2% organic growth in Australian dropzones and 11.4% in NZ dropzones.

Its overall processing rate was down to 78.4% from 82.5% in the first half of 2016.

During the period the group also completed a A$19.6m capital raise and went on to buy Raging Thunder Adventures, an adventure eco-tourism company, located in Far North Queensland.

This purchase, for A$15.4m added white water rafting, hot air ballooning, canyoning, sea kayaking and tours to the Great Barrier Reef to the company’s adventure tourism portfolio.

The company was bullish on its full year performance guiding a 61.5% increase in 12 month EBITDA to $21.8m, adding its four key strategic priorities driving future growth are diversification, acquisitions, further start-ups and efficiencies.

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