EVT (ASX: EVT) – Hotels Growth Drives Strong Q1 Results

EVT Limited’s first quarter result shows the success of management’s strategic refocus, with normalized EBITDA reaching $72.5 million, up 17 percent on the prior comparable quarter. The Hotels division has become the clear growth engine, with management guiding for another record result in FY27 including approximately $13 million of incremental EBITDA from recent investments and platform expansion. This shift reflects deliberate capital deployment toward the hospitality sector’s higher growth potential.

The Entertainment division’s performance illustrates the operating leverage built into the “Fewer, Better” strategy. Despite operating around 30 fewer cinemas than pre-COVID, the division delivered EBITDA of $32 million in Q1, up $20.2 million or 171 percent, with admissions rising 19 percent. Premium screens now account for approximately 40 percent of the Australian circuit. Management expects to exit or renegotiate 13 additional locations over the next three years, which could deliver an EBITDA uplift of around $10 million by FY30. This demonstrates that fewer, higher-quality locations drive stronger per-location productivity and absolute earnings growth.

The capital recycling program targets approximately $800 million of non-core property divestments over three years on a value-first basis. The company has already completed the sale of Arawa Park Hotel in Rotorua for NZ$18 million, representing a 38.5 percent uplift to book value, and agreed to sell LyLo Fremantle while retaining a long-term management agreement. Proceeds will support Hotels growth and debt reduction, with special dividends to be considered. This balance between capital deployment and shareholder distributions addresses both the structural opportunity in Hotels and near-term capital allocation.

Headwinds remain material. Thredbo delivered EBITDA of $20 million in Q1, down $9 million, reflecting the worst snow conditions in more than 40 years. Management expects full-year Thredbo EBITDA of $16 million to $20 million, contingent on summer and June 2027 conditions. Hotels faced a cycling headwind from the Lions tour in the prior quarter, though occupancy held at 80 percent and average room rate rose 3.2 percent, demonstrating continued portfolio outperformance.

Management’s appointment of Rothschild & Co to assess the Group’s future structure signals willingness to consider organizational options that could unlock greater shareholder value. Hotels remains the strategic priority, and any structural outcomes will be assessed on the basis of long-term shareholder value and execution certainty. The review is expected to complete within the FY27 timeline.

Investors should monitor the structural review outcomes, capital recycling execution, and film performance in Entertainment, which will be material to the company’s positive FY27 outlook. 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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