EVT Limited’s 2025 annual report shows the diversified entertainment and hospitality operator delivered earnings growth across all major divisions, with normalised profit after tax up 11.3 percent and reported net profit after tax increasing 15.1 percent. The result reflects solid expansion in the Hotels division, which delivered record EBITDA, and a meaningful improvement in Entertainment operations where the company’s strategic focus on premium experiences is generating disproportionate earnings leverage. Revenue grew 6.9 percent to reach higher levels, while normalised EBITDA expanded 7.6 percent, demonstrating that the company is successfully converting volume growth into margin improvement.
The Hotels division was the standout performer, achieving another record result despite some second-half headwinds from broader macroeconomic uncertainty. The division benefited from the acquisition of the Pro-invest Hotels management business in December 2024, which established Connect Hospitality as a third-party hotel management platform, and the March 2025 acquisition of QT Auckland. EVT now operates through two complementary growth platforms: EVT Hotels & Resorts comprising QT, Rydges, Atura, and LyLo brands, plus the Independent Collection, together with the newly seeded Connect Hospitality platform. Management highlights that the group is expanding its asset-light earnings base, with the hotels portfolio now spanning multiple locations across Australia, New Zealand, and Southeast Asia, and the company expects Hotels to deliver approximately $20 million of incremental EBITDA from key strategic initiatives including QT Queenstown’s staged reopening.
The Entertainment division demonstrated the effectiveness of its Fewer, Better strategy, where EBITDA increased 7.3 percent despite admissions rising only 1.5 percent. This shows the company is generating meaningful operational leverage through portfolio optimisation and premiumisation initiatives. Cinema locations were reduced, yet profitability improved substantially, with the division investing in IMAX, ScreenX and DX premium formats across Australian, New Zealand and German circuits. Management notes that based on current initiatives, the Fewer, Better strategy has potential to deliver an additional approximate $3-4 million of annual EBITDA over time as further sites exit.
The company is executing a significant capital recycling programme, with approximately $500 million of property divestitures identified, including the George and Market Street precinct in Sydney. Management intends to retain QT Sydney under a hotel management agreement following any divestment, maintaining exposure to hotel earnings while unlocking capital for reinvestment. The company notes that execution is targeted over three years, subject to market conditions. The group’s total property portfolio carries a fair value of approximately $6.1 billion as at 30 June 2025.
For FY2026, management expects EBITDA growth in the Hotels and Entertainment divisions, subject to film performance and weather conditions at Thredbo. The Hotels division is expected to deliver a record year with benefit from strategic initiatives, though some near-term headwinds are expected from capital investment activity at properties including QT Queenstown and LyLo Gold Coast. Investors should monitor the progression of the property divestiture programme, execution of hotel growth initiatives, the film slate supporting Entertainment operations, and winter conditions impacting Thredbo’s seasonal earnings.
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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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