EVT Limited reported a solid financial year with normalised revenue rising 1.3% to A$1.237 billion and EBITDA up 6.3%, while net profit after tax surged 593%, driven by operational resilience and strategic growth initiatives including a major hotel management acquisition.
- Normalised revenue growth of 1.3% to A$1.237 billion
- Normalised EBITDA increased 6.3% to A$160.8 million
- Reported net profit after tax surged 593% to A$33.4 million
- Pro-invest Hotels acquisition expands asset-light hotel management
- Final dividend declared at 22 cents per share, DRP suspended
Financial Performance Highlights
EVT Limited has delivered a robust set of results for the fiscal year ended 30 June 2025, with normalised revenue increasing by 1.3% to A$1.237 billion. This growth was primarily driven by the Hotels and Resorts division, which posted a 1.5% revenue increase, and the Entertainment segment in Australia and New Zealand, which grew by 0.8%. Normalised EBITDA rose 6.3% to A$160.8 million, reflecting improved operational efficiencies and cost management across the Group.
Reported net profit after tax experienced a dramatic increase of 593.4% to A$33.4 million, a surge largely attributable to the absence of a significant non-cash tax charge that impacted the prior year. The prior year’s results included a non-cash tax charge of A$26.9 million following changes in New Zealand tax rules related to building depreciation.
Operational Challenges and Strategic Responses
The year was not without its challenges. The Group faced disruptions from ex-Tropical Cyclone Alfred in March 2025, which caused an estimated EBITDA loss of A$2.2 million, particularly impacting the QT Gold Coast hotel and cinemas in Queensland and New South Wales. Additionally, the Entertainment division contended with the lingering effects of the 2023 Hollywood strikes, which affected film supply and admissions, especially in the first half of the year.
Despite these headwinds, the Group’s strategic ‘Fewer, Better’ cinema approach, focusing on premium experiences such as IMAX and Gold Class, helped drive yield improvements and margin growth. The Hotels and Resorts division achieved record revenue and EBITDA, supported by sustained demand and occupancy gains, although renovations at Rydges Queenstown and cyclone-related disruptions tempered short-term earnings.
Balance Sheet Strength and Capital Management
EVT’s balance sheet remains solid with net debt stable at A$311.9 million and undrawn debt facilities of A$261.4 million, providing ample liquidity. The Group’s property portfolio, diversified across Australia, New Zealand, and Germany, is independently valued at approximately A$2.3 billion, with a book value of A$1.2 billion. The Group continues to pursue asset-light growth strategies, divesting non-core properties and recycling capital into higher-return projects.
Expansion via Pro-invest Hotels Acquisition
In a significant strategic move, EVT announced the acquisition of Pro-invest Hotels, a business managing 15 long-term hotel management agreements across Australia and New Zealand with around 3,200 rooms. The acquisition, valued at A$74 million with potential earn-out payments capped at A$30 million, will expand EVT’s asset-light hotel management platform under the newly launched EVT Connect Hospitality pillar. This acquisition is expected to enhance the Group’s brand equity and position it for sustained growth in the competitive hospitality sector.
Sustainability and Governance
EVT continues to embed sustainability into its operations, with validated emissions reduction targets aligned with the Science-based Target Initiative. The Group’s Elevate program focuses on customers, people, community, and environment, underpinning its strategic priorities. Governance remains strong, with the Board actively overseeing risk management, including climate-related risks and modern slavery compliance.
Shareholder Returns
The Board declared a final dividend of 22 cents per share, fully franked, payable on 25 September 2025, bringing total dividends for the year to 38 cents per share, up from 34 cents in the prior year. The Dividend Reinvestment Plan remains suspended, reflecting the Group’s prudent capital management approach amid ongoing market uncertainties.
Bottom Line?
EVT’s strong FY2025 results and strategic acquisition position it well, but upcoming film releases and weather impacts will test momentum.
Questions in the middle?
- How will the Pro-invest Hotels acquisition impact EVT’s earnings and integration risks over the next two years?
- What is the outlook for blockbuster film releases and their effect on the Entertainment division’s recovery?
- How will EVT manage inflationary pressures and capital expenditure amid ongoing climate-related risks?