The Experience Co. Ltd (ASX: EXP) share price is up close to 30% at 33 cents this lunchtime after the Queensland-focused adventure sports company reported a statutory net profit of $7.4 million on revenue of $84.3 million for the half-year period ending December 31 2018. The profit and revenue were up 59% and 42% respectively on the prior corresponding half.
Earnings per share also came in at 1.3 cents for the half compared to just 1 cents in the prior corresponding half.
Despite today's rise the stock is still down around 56% over just the past year after the group was recently forced to issue a profit downgrade on the back of weak tourism conditions in Far North Queensland in particular.
Experience Co. operates, inter alia, sky diving and Great Barrier Reef boat trips and blamed the wet weather among other factors for lower-than-forecast revenues.
For the full year Experience Co's management reaffirmed its guidance to deliver full year EBITDA in the region of $30 million to $33 million.
On conventional valuation metrics the company could looks cheap, but only if management is able to execute on its short and medium-term forecasts.
Others in the tourism sector that could be a more solid bet include Sydney Airport Holdings Ltd (ASX: EVT) or hotelier Event Hospitality Ltd (ASX: EVT).
