How Did EVT Achieve 6.3% EBITDA Growth Amid Film Supply Challenges?
EVT Group reported a 6.3% rise in normalised EBITDA to $160.8 million for FY25, led by record Hotels performance and resilient Entertainment results despite film supply challenges. The company declared a fully franked final dividend of 22 cents per share.
- Normalised EBITDA up 6.3% to $160.8 million
- Record Hotels EBITDA growth of 4.7%
- Entertainment segment impacted by Hollywood strike but showed strong second-half momentum
- Revenue increased 1.3% to $1.24 billion
- Net debt stable at pre-COVID levels of $311.9 million
Solid Financial Performance Despite External Challenges
EVT Group has delivered a robust financial result for the year ended 30 June 2025, with normalised EBITDA rising 6.3% to $160.8 million. This growth was underpinned by a record performance in the Hotels segment, which saw EBITDA increase by 4.7% to $106.2 million. The Group’s revenue also edged up 1.3% to $1.24 billion, reflecting steady demand across its diversified leisure and hospitality portfolio.
However, the Entertainment division faced headwinds from the Hollywood strike, which disrupted film supply and led to a flat full-year revenue outcome. Despite this, the segment showed encouraging momentum in the second half, with a 4.6% revenue increase and a 39% EBITDA uplift in the latter half of the year, driven by strong customer spend and strategic initiatives.
Strategic Focus on Hotels and Asset Optimization
EVT continues to prioritise growth in its Hotels business, which remains the Group’s key driver. The company is advancing its ‘Fewer/Better’ cinema strategy to streamline its entertainment assets and is actively divesting non-core property holdings, including progressing the sale of 525 George Street. These moves aim to recycle capital into hotel growth projects and enhance overall portfolio quality.
Net debt held steady at $311.9 million, consistent with pre-pandemic levels, reflecting disciplined capital management. The Group also announced a fully franked final dividend of 22 cents per share, payable in late September, signaling confidence in its cash flow and earnings stability.
Outlook, Growth Hinges on Film Releases and Weather
Looking ahead, EVT expects EBITDA growth to continue, contingent on the performance of blockbuster film releases and weather conditions impacting its Thredbo ski resort operations. The Hotels segment is forecast to deliver another record year, although short-term refurbishment at Rydges Queenstown may temper near-term results. Thredbo has started the winter season promisingly, but its full-year performance remains weather-dependent.
Overall, EVT’s diversified business model and strategic initiatives position it well to navigate ongoing industry uncertainties while capitalising on growth opportunities in hospitality and entertainment.
Bottom Line?
EVT’s FY25 results underscore resilience and strategic clarity, but upcoming film schedules and weather remain key variables to watch.
Questions in the middle?
- How will the Hollywood strike’s lingering effects shape Entertainment segment earnings in FY26?
- What is the timeline and expected impact of the 525 George Street property sale on capital allocation?
- How will EVT balance refurbishment disruptions with growth ambitions in its hotel portfolio?
