EVT Posts 6.3% EBITDA Growth, Declares 22c Dividend, Eyes FY26 Expansion

Solid Financial Growth Amid Operational Headwinds

EVT Limited has announced its full-year FY25 results, showcasing a steady advance in revenue and profitability despite a backdrop of market challenges and adverse weather conditions. The group’s normalised revenue edged up 1.3% to $1.24 billion, while normalised EBITDA grew a more robust 6.3% to $160.8 million. Notably, normalised profit after tax rose 12.7% to $38.4 million, with reported net profit after tax surging an extraordinary 593.4%, reflecting favourable one-off adjustments.

Chairman Alan Rydge and CEO Jane Hastings highlighted the company’s strategic progress, particularly in the hotels and entertainment divisions, which together underpin EVT’s confidence in delivering further growth in FY26.

Hotels Lead with Record Performance Despite Challenges

The hotel division posted record revenue and EBITDA results, outperforming the market despite headwinds such as Cyclone Alfred’s impact in New Zealand and the temporary closure of Rydges Queenstown for refurbishment. All EVT hotel brands exceeded market growth, with food and beverage revenues and margins also improving. This strong performance was achieved even as the group navigated more difficult trading conditions in parts of New Zealand.

Looking ahead, the hotel segment expects continued growth, although the ongoing upgrade works at Rydges Queenstown and QT Gold Coast are anticipated to temporarily reduce EBITDA by approximately $3.5 million in FY26. EVT’s launch of EVT Connect Hospitality and the pending acquisition of Pro-invest Hotels, which brings 15 management agreements and around 3,200 rooms, signal a strategic push to expand hotel management capabilities and franchise offerings across Australia and New Zealand.

Entertainment Division Recovers Strongly Post-Hollywood Strikes

The entertainment division faced a challenging first half due to the 2023 Hollywood strikes, which disrupted film supply and dampened box office revenues. However, the second half saw a notable recovery, with revenue growing 4.6% and EBITDA surging 39% compared to the prior corresponding period. EVT’s ‘Fewer, Better’ strategy, involving the exit of five locations and premium upgrades at nine priority sites, has enhanced operating leverage and improved customer offerings with formats like IMAX and 4DX.

FY26 promises a strong film line-up featuring anticipated releases such as Wicked, For Good, Zootopia 2, and Avatar, Fire and Ash in the first half, followed by blockbusters like the Super Mario Bros Movie sequel and Star Wars, Mandalorian & Grogu in the latter part of the year, supporting expectations for further EBITDA growth.

Thredbo Weathering the Storm, Property Portfolio Holds Value

Thredbo’s revenue was marginally higher despite experiencing the worst winter weather in two decades, which increased snowmaking and grooming costs, impacting EBITDA. Encouragingly, the second half showed strong momentum with revenue up 10.9% and EBITDA improving 41%, buoyed by a solid summer trading period and a promising start to winter. The division anticipates an EBITDA range of $25 to $30 million for FY26, contingent on weather conditions.

On the property front, EVT’s portfolio value remains robust at over $2.3 billion despite recent divestments. The group is advancing significant projects, including the transformation of Rydges Queenstown into a QT hotel and development plans for LyLo Fremantle and LyLo Gold Coast. A strategic review of the prime Sydney CBD holdings at George and Market Street precinct is underway, with updates expected later in FY26.

Dividend and Outlook Signal Confidence

Reflecting the strong operational performance and strategic momentum, EVT declared a fully franked final dividend of 22 cents per share, bringing the total dividend for FY25 to 38 cents. The board’s confidence is underpinned by a strong balance sheet and a clear growth strategy focused on capital recycling and portfolio evolution.

Looking forward, EVT expects EBITDA growth in FY26, although results will remain sensitive to film release schedules and weather variability. The company’s proactive approach to portfolio management and expansion initiatives positions it well to navigate market uncertainties and capitalise on emerging opportunities.