EVT Limited delivered normalised group EBITDA of $174.4 million for FY26, up 8.4 percent on the prior year, alongside three strategic announcements that signal a significant shift in capital allocation and portfolio structure. The company plans to divest approximately $800 million of non-core properties valued at around $2.25 billion, with proceeds earmarked for hotel growth initiatives and a potential special dividend. Management has simultaneously commissioned Rothschild & Co to conduct an independent review of the group structure, indicating consideration of more fundamental organisational changes designed to maximise shareholder returns from the core hotel business.
The underlying financial performance demonstrates disciplined cost control across the business. Group normalised revenue reached $1,314.9 million, up 6.3 percent, while reported net profit surged 51.9 percent to $50.7 million. The Hotels division showed resilience with normalised EBITDA up 8.4 percent to $174.4 million, though reported growth of just 1 percent reflected headwinds from the Middle East crisis in the fourth quarter. Entertainment division EBITDA climbed 45.8 percent on the back of improved film performance and the benefits of the company’s “Fewer Better” strategy, while Thredbo delivered 13.7 percent EBITDA growth despite weaker winter conditions in FY26. Unallocated expenses remained well controlled, sitting marginally above pre-COVID levels despite the business complexity involved.
The property divestment strategy represents a deliberate pivot away from passive real estate holdings toward active hotel operations. By recycling approximately $800 million into the hotel growth pipeline, EVT positions itself to accelerate expansion of its brand portfolio, which currently operates 101 hotels across 16,042 rooms. The company highlighted record hotel growth pipeline strength, with particular emphasis on Rydges entry into Bangkok and the launch of Connect, a new third-party growth pillar that allows independent hotel owners to access EVT’s distribution network and service infrastructure without ceding brand control. This capital reallocation reflects management’s conviction that shareholder returns will be stronger from hotels than from property holdings.
The independent review of group structure warrants close attention, as it suggests potential separation or reorganisation that could unlock value currently embedded in a diversified conglomerate structure. Streamlining the organisation around the hotel business could reduce complexity, lower cost of capital, and improve operational focus. The company declared a fully franked dividend of 23 cents per share and reported net debt of $476.1 million, up 4.5 percent. Guidance for FY27 remains constructively positive.
Investors should monitor the pace and valuations of property divestments, the outcome of the Rothschild review, and any announcement of special dividend timing or quantum. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About EVT Limited (ASX: EVT)
EVT Limited operates entertainment and hospitality businesses across Australia, New Zealand, and Germany, including cinema operations under brands such as Event Cinemas, BCC Cinemas, and Rialto Cinemas. The company owns and operates hotels and resorts under brands including QT, Rydges, Atura, and LyLo, as well as the Thredbo Alpine Resort. Its core business segments include Entertainment, Hotels and Resorts, Thredbo Alpine Resort, and Property and Other Investments.
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