EVT (ASX:EVT) outlined first-half performance and its outlook for the remainder of the year, highlighting record hotels earnings, improving contributions from its German cinema business, and continued portfolio recycling and investment across the group.
Group results and balance sheet
Chief Executive Officer Jane Hastings reported group normalized revenue of AUD 683.8 million, up 5.4% year over year, and normalized EBITDA of AUD 105.1 million, up AUD 5.5 million. Hastings said growth was driven by hotels and resorts and Entertainment Germany, while Entertainment Australia and New Zealand were affected by what she called a “patchy Hollywood film lineup.”
Net debt at 31 December 2025 was AUD 415.5 million. Hastings said the group’s debt facility matures in May 2026 and refinancing is “well progressed,” adding there remains “significant capacity and debt headroom” for future opportunities.
The board declared a fully franked interim dividend of AUD 0.18 per share, to be paid in March, which Hastings linked to “continuing improvements” in the earnings profile and outlook.
Hotels: record first-half result and a three-pillar growth strategy
The hotels division delivered a record AUD 56 million EBITDA result despite disruption from temporary works at QT Gold Coast and QT Queenstown. Hastings said that after adjusting for these disruptions, underlying hotels earnings were up 15.6%.
For owned hotels, Hastings said occupancy rose two points to 80.9%, average room rates increased 4% to AUD 234, and RevPAR reached a record level, up 5.6% to AUD 189. The half-year benefited from major events including the Lions Rugby Tour in July and August and Ashes Cricket in November and December. By brand, she said each achieved record RevPAR results: Rydges up 9.2%, QT up 3.8%, and Atura up 5.3%.
Hastings described a “three-pillar” hotel growth strategy:
- Owned EVT brands (QT, Rydges, Atura, LyLo), including plans to target wider segments such as “lifestyle budget” through LyLo, with planning approvals secured for Fremantle and the Gold Coast.
- An independent collection model where the asset owner retains brand IP while leveraging EVT capabilities; Hastings said this group has grown to 20 properties.
- EVT Connect Hospitality to manage third-party branded hotels, accelerated via the acquisition of the Pro-invest Hotels Management Company, completed in December.
On Pro-invest, Hastings said the deal includes 15 long-term hotel management agreements under franchise arrangements with major global brands, representing about 3,200 rooms across Australia and New Zealand. EVT expects the acquisition to deliver AUD 8 million to AUD 9 million in annual EBITDA and said it “started well” with strong trading in December and January.
EVT’s managed hotel portfolio has grown to 99 hotels and nearly 16,000 rooms, which Hastings said makes the company the second-largest hotel operator in Australia and New Zealand. She also noted additions to the managed portfolio (including The George Hotel, Brisbane, and Radisson Flagstaff in Melbourne, which is planned to be upgraded and reopened as Rydges Flagstaff Gardens toward the end of calendar 2026) and a new food-and-beverage venue management agreement at Wellington Airport.
Hastings also detailed upcoming owned-brand hotel openings: Atura Oran Park (2027), QT Parramatta (2027), Rydges Tauranga (2028), and Rydges Resort Wailoaloa Beach (2028), noting that construction has started in Fiji.
Portfolio moves and property update
Hastings said EVT completed the acquisition of QT Auckland in December, describing it as part of an ongoing review of the owned property portfolio and a move funded through capital recycling. She said the company acquired the 150-room hotel in Auckland’s Viaduct Precinct for NZD 87.5 million, and that the transaction is expected to settle in early March. EVT also sold Rydges Geelong for AUD 24.5 million, completing in January.
In property and development, Hastings described a portfolio valued at around AUD 2.3 billion and reiterated a strategy of owning hotel properties in key city locations to support asset-light growth, while divesting non-core properties. She said the sale process for 55 George Street in Sydney continues with interest from several parties, with timing subject to negotiations. A strategic review of the George and Market Street precinct is “well progressed,” with an outcome expected to be announced later in the year.
Entertainment: fewer cinemas, more premium experiences, mixed film slate
Hastings said the Entertainment division saw overall admissions down 4.1% versus the prior year, reflecting mixed Hollywood content in Australia and New Zealand, partially offset by strong local content in Germany. Entertainment Germany delivered EBITDA growth of 54.1%, supported by admissions up 2.9% and revenue up 17.4% on yield growth.
In Australia, admissions fell 9.4%, revenue declined 3.7%, and EBITDA fell 22.4%, despite cost management. Hastings said EVT achieved this result with five fewer locations, citing the exit of Morley in Perth and the return of 10 screens to the landlord at Marion (outer Adelaide).
In New Zealand, admissions were down 5.2% and revenue fell 9.7%, with EBITDA declining to a loss of AUD 1.6 million. Hastings attributed the result in part to the partial closure of Event Cinemas Manukau due to a leaking roof, calling it a top-five location in the New Zealand circuit. She said EVT still expects New Zealand to be profitable when film supply normalizes.
On the “fewer, better” strategy, Hastings said EVT had eight fewer cinemas in the half and has exited more than 30 locations to date, saving over AUD 80 million of capital expenditure with limited impact on market share and a positive earnings impact. On “better,” she said premiumization projects expanded the IMAX and ScreenX footprint at locations including Marion, Innaloo, Fountain Gate, and Loganholme, with the premium offering now about 40% of the circuit. EVT expects to exit a further three locations in the second half.
Hastings also provided early second-half trading color for entertainment, stating that January started strongly, with entertainment group revenue up 37.9% year over year and EBITDA up 355% to AUD 11.1 million.
Thredbo rebound and outlook
Thredbo’s first-half results improved after poor winters in 2023 and 2024. Hastings said better winter conditions and an all-weather snow factory installation helped drive revenue up 19.5% and EBITDA up 30.9% for the half. Summer trading in November and December started strongly, with revenue up 17.9%, including mountain biking visitation up 15% and tourist ride visitation up 37%.
However, Hastings said January visitation was reduced by around 25% year over year due to concerns related to bushfires in the region. EVT is preparing to invest in snow factories over the next three to four years, focusing on the “Golden Triangle” to support more consistent operations in marginal seasons. She said EVT expects Thredbo full-year EBITDA to be around AUD 23 million, subject to June 2026 winter weather.
For the group, Hastings said EVT expects the second half to be ahead of the prior comparable period, with expectations dependent on film performance, Thredbo weather conditions, and general market conditions. She added that January 2026 group revenue was up 21.6% year over year, with EBITDA up 54.5%.
During the Q&A, Hastings clarified that the suite of hotel growth initiatives is expected to benefit the next financial year by around AUD 35 million in EBITDA, with about AUD 17 million expected to be incremental versus the current year, reflecting “ins and outs” such as the sale of Geelong, phased openings at QT Queenstown, disruption at QT Gold Coast, the acquisition of QT Auckland, and the launch of EVT Connect.
About EVT (ASX:EVT)
EVT Limited operates as an entertainment, hospitality, and leisure company in Australia, New Zealand, and Germany. The company operates through Entertainment, Hotels and Resorts, Thredbo Alpine Resort, and Property and Other Investments segments. It is involved in film exhibition operations under the Event Cinemas, Moonlight Cinemas, Greater Union, Birch, and Carroll & Coyle cinemas brands; and the operation of Cinebuzz Rewards, a movie loyalty program, as well as State Theatre, a 2,000-seat theatre located in Sydney.
