EVT Limited’s FY26 results reveal a company executing a significant strategic pivot toward its hotels business while systematically unwinding non-core property holdings. The headline numbers reflect this transition, with normalised EBITDA rising 8.4% to $174.4 million and normalised profit after tax surging 41.3% to $54.3 million. The disproportionate profit growth relative to revenue gains of 6.3% signals improving operational leverage and disciplined cost management across the group.
The capital recycling programme dominates the strategic update and represents the announcement’s most material news for shareholders. Management has identified approximately $800 million of non-core property for divestment over three years on a value-first basis, with proceeds earmarked for hotel expansion and potential special dividends. This staged approach protects the group from forced selling while preserving optionality on capital allocation. The timing is particularly relevant given that development approvals for the George Street precinct in Sydney have now been secured, establishing a clear pathway to market and validating the asset’s enhanced value proposition.
Hotels remain the strategic centerpiece and delivered a record result despite notable headwinds. Revenue grew 5.1% with underlying EBITDA up 3.2%, while record RevPAR demonstrates pricing power within the portfolio. First half RevPAR growth of 5.6% moderated in the second half due to indirect impacts of Middle East tensions, alongside near-term disruptions from property refurbishments at QT Queenstown and QT Gold Coast and light rail construction affecting QT Canberra. The successful December launch of Connect Hospitality substantially offset these temporary impacts. Importantly, EVT’s brands performed ahead of market during this challenging period, signalling both brand strength and execution capability. The Bangkok entry by Rydges illustrates the ambition of the asset-light expansion strategy.
The entertainment division’s results were unexpectedly robust, with EBITDA climbing 45.8% despite operating 11 fewer sites than the prior year. This outcome validates the ‘Fewer Better’ portfolio strategy and demonstrates how focused management can generate significant operational leverage, even amid temporary refurbishment-driven disruption.
The group structure review conducted by Rothschild and Co warrants close attention. The engagement of an independent advisor and establishment of an Independent Board Committee suggest the board is seriously considering material structural changes, potentially ranging from a hotels business separation to broader organisational restructuring. The measured language regarding confidentiality while providing strategic updates indicates a process that could yield transformative outcomes during FY27.
The 23-cent final dividend maintains dividend momentum while preserving board flexibility to declare special dividends from asset sale proceeds. For investors, the critical variables are execution risk on the capital recycling programme, timing of the group structure review outcomes, and market conditions affecting asset valuations. The three-year divestment window provides strategic optionality but also creates cashflow timing uncertainty.
This announcement is classified as price sensitive under ASX Listing Rules.
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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