I would now like to hand the conference over to CEO John O'Sullivan. Please go ahead.
Thanks, Travis. Good morning, ladies and gentlemen, and welcome to the Experience Co FY2025 Results Teleconference. With me this morning is Gavin Yates, our CFO, and this morning we'll run through the investor presentation highlights that were uploaded to the ASX platform early last evening. As per previous presentations, the format today will be the same. I'll provide some introductory comments. Gavin will take you through the financial result in a bit more detail, and I'll make some closing remarks on the outlook of the group, and then we're happy to take your questions. Turning now to page five of the presentation pack, whilst Gavin will spend more time on the financial results of the group for the year and a little later in our call, at a high level, FY2025 marked the continuation of our improvement in financial performance of the group compared to previous periods.
Key highlights included an increase of revenue to $134 million, an underlying EBITDA of $19.3 million, driven primarily by the adventure experience segment and a fast-improving skydive segment, an underlying net profit after tax before goodwill impairment of $2.1 million, largely off the back of improved earnings, and an overall improvement in our cash position of $2.8 million on the previous year. Significantly, because of the performance during FY2025 and the continued positive outlook for the group, the board has declared a fully franked dividend of $0.0025, representing the first dividend paid by the group since FY2018. Turning now to slide six. As we articulated during last year's AGM, this last financial year was characterized by the focus of management on four key areas, being business performance improvement, sustaining of trading momentum, growth, and the quality of the portfolio.
This slide summarizes the key outputs from the year, with the following highlights also to be noted. Our focus as management on the overall business performance has delivered on positive outcomes for each of the key metrics of the business, including revenue, underlying EBITDA, free cash flow generation, and underlying net profit before impairment. Whilst much of this is down to the improvement in our trading performance, our focus on operational and corporate costs has also played a major factor. Secondly, throughout the year, we witnessed during trading in our key school holiday periods, was for the first time since FY2019, strong and ahead of expectations. Our December, January, and April trading months more than exceeded the FY2024 performance of the group, and even though May and June were disappointing, pleasingly, the underlying demand during those months was in line with our expectations.
Thirdly, our growth agenda was mainly focused on unlocking opportunities within our existing portfolio, and this was a highlight by the work done in our skydive team, particularly in New Zealand, the purchase of our new vessel, Aquarius II, as well as an extremely strong performance from our newly opened Treetops campus site, which will now see new attractions being added to this site as a matter of priority. Finally, the group announced a non-market share buyback in late June and continued to assess the opportunities for the disposal of excess and non-performing assets within the group. Turning now to slide seven. This slide contains a business unit summary of the performance during the year, and whilst I won't go through this line by line, I'd like to point out the following. Firstly, all business units reported improved earnings performance from the previous comparable period.
Our Skydive Australia and Reef Unlimited business units continue to remain leading providers of experiences in their genres, and Skydive Australia has been a key contributor during FY2025 to the overall earnings growth for the business. Both have benefited from the continuing improvement in international visitation to Australia and New Zealand. Treetops Adventure and Wild Bush Luxury both reported strong improvements on underlying earnings and margins, and Treetops Adventure particularly benefited from a concerted focus on improvement in average revenue per customer and initiatives at a site level. Finally, in our corporate costs, management maintained its focus on efficiencies and in particular focused on free cash flow generation. Now turning to slide eight before I hand over to Gavin, the backdrop to the group's improved performance in FY2025 has been the overall improvement in both domestic and international tourism in both Australia and New Zealand.
This has always been a clear driver and a key sensitivity to Experience Co 's business performance. What gives the board and management great confidence about the future is the outlook for both markets in terms of overall visitor night trips in Australia and New Zealand, as well as the projected growth in overnight visitor expenditure. We continue to work with Tourism Australia, Tourism New Zealand, and the relevant state and territory tourism authorities, as well as domestic and international trade partners, to continue to take advantage of these improving market dynamics. With that, I'd now like to hand over to Gavin to take you through the financial performance of the group in more detail. Thank you.
Thanks, John, and good morning, everyone. Turning to slide ten, financial performance. The FY2025 results are consistent with the Q4 trading update that we released to the ASX platform on the 30th of July . It's pleasing to report on another strong year for Experience Co , with continued growth in revenue, underlying earnings, and importantly, cash flows, which have been achieved despite the backdrop of challenging economic conditions, weather-related disruption, and a more gradual return in international visitation than originally anticipated. Revenue growth of 6% to $134.3 million and underlying EBITDA growth of 34% to $19.3 million represent Experience Co's strongest financial performance since the onset of the pandemic. Trading during the year was characterized by strong trading during the key peak holiday months, which offset softer trading during the seasonal shoulder months and periods impacted by weather disruption.
Pleasingly, the improved financial performance reflected revenue and earnings growth for both the skydiving and adventure experiences segments, as well as lower corporate costs, which are outcomes of both improved trading conditions and actions taken by management during the year to enhance performance. The 3% increase in underlying EBITDA margins to 14% was driven by both operating leverage as volumes increased, improved site efficiencies, and cost savings from the corporate cost-out program undertaken during the year. The group reported a statutory loss after tax of $1 million, driven by the recognition of the Wild Bush Luxury goodwill impairment of $3.1 million. However, the underlying net profit after tax before goodwill impairment of $2.1 million is the first time Experience Co has reported an underlying profit after tax since the pandemic, indicative of the improvement in underlying business performance. Turning to slide eleven, skydiving.
The skydiving segment continued its recovery during the year, aided by the ongoing return of inbound markets into Australia and New Zealand. Segment revenue growth of 5% and underlying EBITDA growth of 27% was primarily driven by improved volumes and site efficiencies. In terms of volumes, Skydive Australia reported growth in tandem packs volumes of 9% for the nine drop zones that operated all year. While the pace of growth varied across sites, the Airlie Beach drop zone reported the strongest growth rate as it benefited from the return of backpackers to the Whitsundays region, which is a good sign. As we previously reported, two Skydive Australia sites were placed into care and maintenance in mid-September 2024, which allowed us to simplify the network structure and provide opportunities to optimize the asset usage and capital requirements of the business during the year.
The Yarra Valley drop zone is planned to be reopened later in 2025. Skydive New Zealand reported growth in tandem packs volumes of 10%, driven by the continued return of international visitation into the Queenstown Wanaka region. While both the Queenstown and Wanaka drop zones reported growth for the year, the growth rate was most pronounced for the Wanaka drop zone as it benefited from initiatives implemented to improve site efficiencies. During the year, management continued to take a targeted approach to pricing within the context of the existing price point of the experience. Average revenue per customer growth of 2% for the core tandem skydiving experience was reported by the segment, which was supported by continued strong uptake of photo and video in both countries.
Pleasingly, the skydiving segment reported improved operating margins, which was primarily driven by the higher volumes and the inherent operating leverage in the asset base. During the year, management continued to implement initiatives to enhance operational efficiency and optimize asset usage across the network, with improved packs per load efficiencies achieved across the network during the year. Accelerating the improvement in performance of the skydiving segment continues to be a priority focus for management. Turning to slide 12, adventure experiences. The adventure experiences segment reported another strong year with growth in revenue of 7% and underlying EBITDA of 14%. All three business units within the segment reported improved financial performance, however, overall performance was led by the contribution of Reef Unlimited and Treetops Adventure, and improved average revenue per customer, steady volumes, and cost control. Segment earnings growth was driven by a strong year for Treetops in particular.
Reef Unlimited reported growth of revenue growth of 7%, primarily driven by a 6% increase in average revenue per customer, which was influenced by product mix, price increases, and stronger onboard sales. Reef Unlimited volume was only slightly up on prior year as the strong first half of the year was largely offset by a more weather-disrupted second half, particularly in February due to weather associated with Tropical Cyclone Alfred. Shifting to Treetops, the business unit reported revenue growth of 12%, primarily driven by a 10% increase in average revenue per customer associated with price increases, site mix, and ongoing focus on improving average site spend. Treetops Adventure had a similar year to Reef Unlimited in terms of volume, in that it had a strong first half of the year, which was largely offset by softer trading and inclement weather in the second half.
Other key highlights for Treetops Adventure included the first full year of operations for the new Treetops Canberra site, which performed ahead of business case expectations, as well as the reopening of the Zip Coaster attraction at the Treetops Central Coast site. Turning to Wild Bush Luxury, the business unit also reported improved financial performance driven by improved walk volumes and cost management, offsetting softer accommodation volumes during the year. However, the segment continued to experience the impacts of an elevated level of Australians traveling outbound, as well as higher domestic airfares to key access points such as Darwin, which underpinned the goodwill impairment. Now turning to slide 13, balance sheet. Importantly, Experience Co's balance sheet remains well positioned to support continued growth.
Experience Co maintained a modest net debt and gearing level during the year, with a closing cash balance of $11.1 million, net debt of $10.9 million, and a net debt to underlying EBITDA ratio of 0.6 at 30 June. As can be seen at the bottom left table on the slide, the group's debt facility with CBA remains available to support the business. A key highlight of FY2025 was being able to utilize the market rate loan facility to support the acquisition of the new Reef Unlimited vessel, Aquarius II, which has been performing strongly since commencing operations. At 30 June, the business maintained $14.2 million of undrawn funds available across the market rate loan and asset finance facilities, which are available to support future growth initiatives.
Further, at 30 June, the Australian operations of Experience Co had $55.9 million of carried forward tax losses available to enhance future cash flow generation. Experience Co also had a $9.3 million franking credits balance at 30 June, a portion of which will be utilized in paying the $0.0025 per share fully franked dividend next month. Turning to slide 14, cash flow. Firstly, in terms of the tables on slide 14, the top table represents a summary of the statutory cash flow statement reported in our audited financial statements. However, similar to our half-year results presentation, we have again included some additional information on the slide to provide further insight on underlying free cash flow of the business, specifically the middle and bottom tables.
A key highlight of the year has been the improvement in cash flows generated by the business, as illustrated by the 53% increase in statutory operating cash flows to $17.1 million. As can be seen at the bottom, the business reported a $6.3 million increase in underlying free cash flow, which was a function of two key factors. Firstly, the business maintained strong conversion of EBITDA into cash flow, with underlying free cash flow improving in line with business performance and inherent operating leverage in the asset base. Secondly, maintenance CAPEX remained at a broadly similar level to prior year, increasing by $0.8 million to $8.1 million, and is primarily driven by scheduled maintenance activities for the aircraft and vessel fleet, as well as equipment renewal for skydiving and Treetops Adventure.
In terms of growth CAPEX, the key investments during the year were the purchase of a hangar facility and related equipment at Shellharbour Airport for our Skydive Australia operations and the new Reef Unlimited vessel, Aquarius II. As noted earlier, the group leveraged the CBA debt facility for these investments. In terms of financing cash flows, a breakdown has been provided on the slide. A key highlight, albeit small in absolute terms, was the share purchases associated with the commencement of the on-market share buyback in June. Looking forward, improving the free cash flow of the business will continue to be a priority focus of management, as well as maintaining a disciplined approach regarding the allocation of surplus free cash flows. Importantly, the improving cash flows of Experience Co provide it with a greater optionality for initiatives such as the share buyback, paying a dividend, and stepping up our growth ambitions in FY2026. I'll now hand back to John.
Thanks, Gavin. I'd now like to give you a quick update on our strategy and outlook for the group before taking questions. Turning now to slide 16. In the financial year 2026, our strategy will continue to be built around the four pillars of improvement in business performance, sustaining trading momentum, future growth, and the quality of the portfolio. During this coming financial year, our focus on free cash flow generation and particularly focus on improvement of tandem skydiving earnings within Australia, as well as our continued focus on our capital expenditure across all business units, will be a priority.
From a trading perspective, as we've said before, we believe that our group is uniquely placed to capitalize on the world's overall desire to experience adventure, as well as do this in iconic locations such as the Great Barrier Reef, Sydney and surrounds, the South Island of New Zealand, and Australia’s Red Centre. There is an immediate focus within our group on actioning organic opportunities, some of which I'll summarize over, but new products such as our new exclusive two-island explorer tour on the Great Barrier Reef, expanding our efficiency in skydiving, as well as the identification of new Treetops locations and expansion within these experiences offerings will be key to this. Finally, we'll continue to review the business operations and asset returns. Turning now to slide 17. A key part of our strategy for FY2026, as I said before, will be focused on organic growth.
This is primarily off the back of recent projects, which demonstrate the company's strong track record at delivery of organic projects within the portfolio. On this slide, a few pertinent examples are outlined, but in our marine, treetops, and skydive divisions, we've been able to successfully deliver projects such as the Remora Reef Pontoon, Aquarius II, and the Treetops Adventure Canberra sites that have all provided healthy returns on investor capital, as well as high utilization rates and, importantly, growth to existing volumes of the business. Turning now to slide 18. With this track record in mind, our focus during FY2026 on growth will be primarily focused on our marine and treetops business units, with a focus on adjacent opportunities, new experience development, and, importantly, experience enhancement of existing assets.
In our Treetops divisions, we've currently identified over 10 sites nationally that are all in different stages of development, and we are actively expanding our existing portfolio of sites. An example of this is the commissioning of a new zip line course and net football attraction at our Canberra site. We also believe that at the right time, our marine division is ready to take the next step and expand outside of its existing footprint, as well as exploit some of our competitive advantages within Cairns and Port Douglas. A good example of this is our new exclusive two-island explorer tour between Fitzroy Island and Green Island, launching in September, which will be the only tour of its kind given the exclusivity of our permits.
We believe that this will provide us with a competitive advantage in the all-important East Asian markets that have constrained itineraries and a desire to experience the reef. Thirdly, we are actively looking at bolt-on acquisitions for the outdoor adventure and marine segments and have now established a solid pipeline, which will be continually assessed. Importantly, funding for this growth agenda will be supplied by our cash reserves and our debt facility. We are extremely encouraged by the level of support that we have with CBA, and this, coupled with our improving business performance, means that we can confidently move forward on this agenda. Turning now to slide 19 before we open the call up to questions. I was very pleased to be able to report to you that July was a continuation of the strong trading momentum that we experienced during FY2025.
The July result was both ahead of PCP and our own internal forecasts. A noticeable impact on our trading was the British and Irish Lions tour to Australia, and across certain parts of our business, the increase in the number of customers from the U.K. and European continent was over 60% up on PCP. With the green and gold runway of events in Australia over the coming year, this gives us great confidence about our ongoing business performance, and targeting the customers from these events will be a priority. Importantly, today we've been able to declare a fully franked dividend of $0.0025, the first dividend since FY2018. This is an important milestone for the business as we continue our journey of business performance improvement and is tantamount to the board's confidence in the future trading momentum within the group.
Whilst the group does remain confident, we are not complacent about the job ahead, and management's focus will be upon three things: continued and accelerated revenue growth across all business units, continued focus on corporate efficiency and operating efficiencies, with a particular focus on procurement opportunities, and a continued focus on the free cash flow generation of the group. Like FY2025, we are also targeting a cost efficiency program through a focus on procurement that seeks to yield over $2 million in annualized saving. Already we've conducted our insurance brokerage tender, and we expect to see significant annualized savings achieved off the back of a simplified approach in this category. Other areas that we've also identified include food and beverage procurement in certain parts of our business, printing, and also an overarching review of our IT contracts and systems. As a result of all of the above and what we've said today, our longer-term outlook and the earnings capacity of the group remain unchanged. Thank you for your time this morning, and we're now ready to take questions.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you're using a speakerphone, please pick up the handset to ask your question. The first question today comes from Allan Franklin from Canaccord Genuity. Please go ahead.
Yeah, hey John, hey Gavin, morning. Thank you for your time. Good to see the confidence in some of that commentary. I might just kick off there if I can. It does feel like you're feeling more confident, and you have sort of talked a lot in the last five minutes or so. Just to clarify, please, what's driving that confidence? Is it a whole lot more pathway behind you to say you know what you're doing, your operations are in control, or is it more stronger bookings, agent intentions that you're seeing, and just the extent to which you think international or domestic will drive the next leg of growth?
Yeah, look, I think thanks for the question. I think it's a combination of all the above. I think, you know, over the last 12 months during FY2025 in particular, we've spent a lot of time in improving the operating margins of the business. As we said before, we've taken $3 million of annualized costs as an example. We've really focused on increasing the percentage of direct booking. In Skydive, for example, we're getting more customers booking direct with us than going through agents, which, prior to FY2019, that wasn't the case. We've done a lot of work in the business settings. What we're seeing, as we pointed out in that strategy update, is that we're seeing an improvement in the overall macro settings for international visitation, which is continuing its improvement back within Australia and also New Zealand.
We're also very more confident now about the domestic outlook, particularly given interest rate cuts and also the trends that we're starting to see play out through the business. I guess it's a combination of those. As we've seen from the outlook from both Tourism Australia and Tourism New Zealand, the growth rate in inbound visitation of both markets is looking very healthy. It's a combination of all that. I think over the last 12 months, Gavin and I have also developed a better handle on what levers to pull. We've really noticed this year that we just think this procurement opportunity is a big opportunity for us as well. There's a combination of whole different factors playing out.
Yeah, helpful, thank you. Maybe just sort of touching on the New Zealand market, skydiving, obviously, you did note Wanaka is driving most of the growth. Just a reminder in terms of the extent to which you sort of may choose to or can sort of shift volumes between those locations, and the extent to which you are sort of feeling confident into Chinese New Year, which I think was a little bit impacted last year.
Yeah, so look, the capability that's inbuilt in the skydiving business, both in Australia and New Zealand, is that if we have a day where, in certain drop zones, if we have a day where it's blowing out and we know where the conditions are going to be challenging to be able to jump safely, we can transfer customers and also tandem masters to an alternative site. In New Zealand, for example, we're basically an hour between the shop that we have on Shotover Street and also the airfield in Lake Wanaka. Utilizing our existing transport infrastructure, we're able to transfer as many of those customers as we'd like to do. Equally in Australia, for example, just last week we had a day where Wollongong wasn't able to jump, so we sent our 54-seat bus from Sydney that goes around the hostels.
We just sent it up north up to Newcastle and we were able to process those customers. That's a practice that's been embedded in the business now for a long time. We also do that up in North Queensland, for example, and we have done it in Southeast Queensland between Noosa and Byron as well. We're feeling very confident about Chinese New Year into New Zealand in particular because of the fact that Queenstown is a, you know, it's a must-see destination. It's on every first-time visitor's itinerary to New Zealand. It's a lot like Sydney and the Great Barrier Reef and Uluru is in Australia for that. Provided that the weather gods are favorably small on us, we see no reason not to be confident about that trading period, both in New Zealand and also in Australia.
I mean, I think what happened last year in FY2025 was we came out of a January which had been really, really strong. We had good underlying momentum, but we did run into some pretty severe weather. Obviously, we take safety and all of our business units pretty seriously, so we were unable to process that volume. Over in New Zealand, we were pretty happy with the volume at that time as well.
Helpful. Sorry, I did misspeak a little bit as well. I was also alluding, meant to allude to Golden Week, which I think is ahead of obviously Chinese New Year and probably within reach now. Same comment will go for Golden Week, New Zealand as well as others.
I think just overall in both markets, we're seeing that continual improvement in that Chinese market. I think both markets now are back to sort of 70% of holiday makers into both Australia and New Zealand for the China market. Some parts of Australia obviously are ahead of that curve. Some are behind because of the various, I guess, the dispersal within the country. Certainly we're looking forward to Golden Week. As I said, we're looking forward to what we've established this financial year, last financial year, sorry, with a really strong trading record in those peak holiday periods, which has been really important, because as we say in the presentation, that accounts for upwards of 80% of our overall business during the year.
Yeah, helpful. Maybe just one last one on TNQ and the market dynamics up there. There's definitely positive framing from Cairns Airport and where they want to go over the next 15 years. We have seen good investment in accommodation by multiple operators, and I guess nice to see the SkyRail investment flowing through. You've obviously done a couple of things in that region. How do you sort of feel about the sort of product offer and the extent to which other operators are now starting to lean into the market growth?
Yeah, I think we are very, very excited about it. I think the $85 million that the Chapman family is spending on SkyRail is really important for the region because that is such an important attraction for Cairns and tropical North Queensland. I think for us, the important thing is why we've invested in Aquarius II, why we've launched the exclusive two-island explorer tour, why we did Remora, and why we've gotten the returns on those assets is that anything up there that you start to invest in, new products that differentiate you from your competitors, we've seen in our business that it responds very favorably to. The exclusive two-island explorer tour that launches on the 1st of September for us is really important because no other operator can provide that. What it provides you is a full day doing two islands, being Fitzroy Island and then Green Island.
Those two markets are quite important for that East Asian visitor that's really important to that region. That's why it's just basically deploying Aquarius II or one of our other vessels there. The incremental cost we have to spend on it is virtually nil because the vessel's already operating and the crew's already been paid for. We just think that enhancement of existing experiences and new experiences in that region, the market responds to really quickly. The fact that we've seen those investments, Bailey's invested, I think, close to $20 million on Silky Oaks Lodge, we think that's just overall really positive for the region and positive for our business.
Helpful, thank you.
Thanks.
Thank you. Once again, to ask a question, please press star one on your telephone. The next question comes from John O'Shea from Ord Minnett. Please go ahead.
Good morning, John. Thanks for taking my question. Can you hear me okay?
Yeah, thanks, John.
Yeah, first one from me. Just intrigued as to the board's sort of rationale for the dividend. You could maybe just talk me through that, mate, to start with. I've got a couple of questions after that.
Yeah, it was very simply this, John, that they felt that the trading performance from FY2025 and then the outlook for FY2026 and beyond, that basically we had the capacity to do it. They felt, we feel confident in the business outlook. It was really that simple.
Yeah, obviously you've got that plus the buyback going on, you know, a reasonable sort of CapEx there, and you've got to still have the recovery phase of the cycle. Do you think it's more a reflection of where you think you're going to be rather than where you are now? Is that how we should think about it?
I think you should think about it in the context of we wouldn't be paying out a dividend, as modest as it is, if we didn't think we could fund it. That's the first thing. We're very comfortable with where the financial position of the business is. To your next point, it's also about the fact that we're very confident about FY2026 and beyond, not only just with the existing business, but also with the opportunity we have to execute on some organic growth within the business.
Sure, thanks very much for that. Now, second question is, Skydive, obviously you've seen the improvement coming through, albeit slower than you expected. Do you still remain, or what are your views around that recovering back to the $25 million that it was doing pre-COVID? Do you still see that as an achievable target? Just, I mean, we got a couple of other things if you could push on.
Yeah, certainly we do. I mean, albeit that obviously the shape of the business has changed somewhat since FY2019. For example, we no longer have a Brisbane drop zone. We currently don't have a site in Western Australia. What we've seen in recent years, particularly since we emerged from the pandemic, is that we've been able to increase our yield per customer. As you saw in, and as we also saw in FY2025, with two less drop zones, we actually exceeded the volume that we had in FY2024. There's an underlying confidence there that that market is returning, albeit that some of the domestic activity has probably been slower than we would have liked because of cost of living pressures and other things that's been affecting consumer discretionary spend. Overarchingly, we're still extremely confident about that.
We've done a lot of work on, as I've said, improvement in yield, improvement in the cost base, and with the international markets now starting to return, particularly that Chinese market, but also those other markets in and around that, such as U.K. and Ireland and also Southeast Asia, we still remain confident in that.
Sure, thanks for that. Finally, from there, just on the CapEx side, how do you expect that to look in the next?
I'll hand over to Gavin on that one.
Sorry, I just missed the end. Yeah, I mean, I guess we've set out an outline there just on the page, the cash flow side page. I mean, I think the maintenance CapEx, as you know, it's largely driven by the aircraft and the vessels. They're scheduled maintenance activities, which are both time-driven and activity-driven. At a high level, we saw a slight uptick this year. It is very much driven by just the scheduled activities. It can be lumpy, and that's what we tend to see. It sort of goes up and down. It does scale a little bit with the growth and the activity of the business as well. As we continue to grow our volumes, there'll obviously be a little bit more activity on the capital side. Obviously, we try to manage it within a, you know, through the cycle as best we can.
On the growth side, as I said, the main sphere was the vessel and the hangar. Both those were utilized the debt facility, which, obviously one of the key reasons for having the market rate loan facility is to underpin investments like that to, I guess, to underwrite sort of future growth activities and of earnings.
Yeah, thanks very much, guys. Good job.
Thank you. Once again, to ask a question, please press star one on your phone. The next question comes from Rodney Pryor from Nordlys Investments. Please go ahead.
Thanks very much for asking that question. John, just wanted to touch on Aquarius II acquisition. I think when you'd talked about it at the half year, you'd suggested around about a four-year thereabouts payback period. Just given you've now had four to five months of operating, just wondered whether you still thought that held or how you're thinking about that.
Yeah, I still think that holds, Rodney. What we've found with it has been that it's been very popular on charter business, as well as we've been able to deploy it on our scheduled services, particularly for Fitzroy Island. It's actually been getting, I guess, more work on the scheduled services than we initially first thought. As I said, it'll be a key part of this two-island tour. We're pretty confident that that sort of payback period still holds.
Okay, that's great. Just another one on your comments around the portfolio on slide 16 and looking at selling surplus assets, divestiture. Can you give us any idea of the size or quantum of what we're looking at there? Is that relatively small and incremental, or is there anything particularly chunky?
I think what we're focused on there is that within the group, obviously, there are, as we, I think we foreshadowed this at the AGM, was that there are a number of aircraft that we believe are surplus to requirements. For example, there's three aircraft, three aircraft air vans that are no longer actually serviced in Australia. We're looking to recycle those out. There's also some miscellaneous property as well that's within the group that we're also reviewing as well. They're mainly sort of assets of that nature.
Okay. You've obviously called out the weather that's impacted the business. I know that's always something that's going to be a constant to deal with. I mean, as I look through the segment reporting for adventure, you'd done $7 million EBITDA at the half year, at the end of the year, at $6.9 million. Basically, call it flat for the second half versus, I think, about $3.1 million of EBITDA last year. I know it's probably hard to perfectly answer, but if you didn't have the weather impact, do you think you would have been ahead of last year, like first half of 2025 was versus first half of 2024? What were your thoughts around the magnitude of the weather impact?
Oh, look, I wouldn't want to quantify the magnitude, but I'll throw out a number. Certainly, I think we would have been well ahead. I mean, when we came out of April, our April school holiday trading was really, really strong. May and June were a lot more adverse in terms of weather. As you point out, it's pretty hard for us not to be impacted by weather, particularly when you've got people jumping out of airplanes and you've got people traveling on vessels. From my perspective, I think we would have been well ahead of where we were in FY2024 for those two months.
Okay, no, that's great. Look, thanks for taking my questions and congrats on a great result.
Thanks, Rodney. Cheers.
Thank you. At this time, we're showing no further questions. I'll hand the conference back to John O'Sullivan for any closing remarks.
Thank you again, ladies and gentlemen, and we look forward to catching up with you individually as we go on our roadshow subsequent to this. Thank you.
Thank you. That does conclude our conference for today. Thank you for joining. You may now disconnect.