EVT Surges on Q1 Growth and Pro-invest Deal, Eyes Hotel Expansion
EVT Limited reports a robust 20.7% rise in Q1 EBITDA, driven by all divisions, with Hotels leading record results and a strategic acquisition poised to boost earnings further.
- Q1 EBITDA up 20.7% to $61.8 million across all divisions
- Hotels division posts record Q1 EBITDA of $24.3 million
- Pro-invest Hotels acquisition to add $8-9 million annual EBITDA
- Strong property portfolio valued at $2.3 billion supports growth
- Focused hotel growth via owned brands, independent collection, and third-party management
Strong Q1 Performance Across Divisions
EVT Limited has kicked off FY26 with a solid first quarter, reporting a 20.7% increase in normalised EBITDA to $61.8 million. This growth was broad-based, with all operating divisions contributing to the uplift. The Hotels division led the charge, delivering a record Q1 EBITDA of $24.3 million despite ongoing upgrade works and cyclone remediation efforts.
The Entertainment segment also showed resilience, with a 53.1% jump in EBITDA to $11.8 million, buoyed by strong market performances in New Zealand and Germany, despite Australia facing challenges from a less blockbuster-heavy film slate compared to the prior year. Meanwhile, Thredbo benefited from improved winter conditions and innovative snowmaking technology, posting a 28.6% EBITDA increase to $29 million.
Strategic Growth Anchored in Hotels
The Group is also advancing significant property upgrades, including the transformation of Rydges Queenstown into QT Queenstown, projected to add $6-9 million incremental EBITDA by FY28. Additionally, a pipeline of new hotels in key Australian and New Zealand markets is slated to open over the next few years, underpinning EVT’s expansion ambitions.
Robust Property Portfolio and Financial Position
EVT’s property portfolio, valued at around $2.3 billion, has grown 15% since 2020 despite divesting non-core assets that generated over $310 million in proceeds. The Group maintains a strong balance sheet with net debt stable at approximately $312 million and refinancing underway for its core debt facility. Strategic reviews are ongoing for prime Sydney CBD assets, including the George and Market Street precinct, with updates expected later in FY26.
Outlook and Market Positioning
Looking ahead, EVT expects continued EBITDA growth in Entertainment, supported by promising film releases such as the next Avatar installment and Zootopia 2. The Hotels division is poised for another record year, factoring in the Pro-invest acquisition and temporary earnings impacts from ongoing property works. Thredbo’s full-year EBITDA is forecast around $25 million, contingent on weather conditions.
EVT’s Elevate program continues to drive improvements in environmental sustainability, employee engagement, community inclusion, and customer experience, positioning the Group well for future challenges and opportunities. The integration of AI and digital transformation initiatives further enhances operational efficiency and customer personalization.
Bottom Line?
EVT’s diversified growth strategy and strategic acquisitions set the stage for sustained momentum, but weather and film market dynamics remain key variables.
Questions in the middle?
- How will the Pro-invest Hotels acquisition reshape EVT’s competitive positioning in Australia and New Zealand?
- What impact will ongoing hotel upgrades and cyclone remediation have on near-term earnings?
- Can EVT’s Entertainment division fully recover blockbuster momentum amid evolving film supply conditions?
