Rex (Regional Express Holdings Limited), has posted an after-tax loss of A$16.5 million for the six months ended December 31, 2022 (1HFY23), an improvement of 55% over the prior corresponding period.
This loss includes a negative impact of A$23 million related to mark-to-market valuation of the convertible note and warrant facility entered into with PAG in 2020. This loss is not cash in nature and was brought about by the increase in value of Rex shares. Operating loss after tax for the period was A$1.9 million but cash in bank almost doubled compared to the prior period.
Domestic jet services returned to monthly profitability in September 2022, a mere seven months after the full resumption of domestic services (February 2022). Domestic operations achieved consistent growth for four consecutive months to the end of the period. Regional services have been positive at EBITDA level for the last four months of the period and are expected to return to monthly profitability in Q3FY23.
Revenue (excluding government grants) for the period improved by 282.2% against the same period last year. Government grants and subsidies declined by 93% to A$1.9 million. (£1.00 = AU$1.79 at time of publication)
