EVT delivered a 17% lift in normalised first-quarter EBITDA to $72.5 million, powered by a sharp recovery in Entertainment and resilient Hotels trading. Thredbo was the drag, while an $800 million property sell-down and ongoing structure review put the group’s Hotels-led strategy under the spotlight.
- Normalised Q1 EBITDA rises 17% to $72.5 million
- Entertainment EBITDA jumps 171% on blockbuster film releases
- Hotels expects another record result in FY27
- Thredbo EBITDA falls $9 million after exceptionally poor snow conditions
- Up to $800 million of non-core property sales targeted over three years
Entertainment powers EVT’s first-quarter earnings jump
EVT Limited (ASX:EVT) has opened FY27 with a sharp earnings acceleration, reporting normalised first-quarter EBITDA of $72.5 million, up $10.7 million or 17% on the prior comparable quarter, excluding the impact of AASB 16 Leases. The standout was Entertainment, where EBITDA surged to $32 million, up 171%, as Spider-Man: Brand New Day and The Odyssey drove admissions 19% higher.
The result gives fresh evidence of the operating leverage in EVT’s “Fewer, Better” cinema strategy. The group produced its second-highest first-quarter box office result with around 30 fewer locations than before Covid-19. The Christmas slate includes Avengers: Doomsday and Dune: Part Three, although EVT cautioned that the second-half film schedule remains incomplete and full-year performance will depend on release timing and audience response.
Hotels remains the centre of EVT’s capital strategy
Hotels contributed $23.9 million of first-quarter EBITDA, down only $0.4 million despite the prior comparable period benefiting from the British and Irish Lions tour. Occupancy held at 80% in the trading update and average room rates increased 3.2%, with EVT saying its hotels continued to outperform the market.
The division is expected to deliver another record result in FY27, including about $13 million of incremental EBITDA from Connect Hospitality, QT Auckland and the phased return of QT Queenstown after upgrade works. That forecast comes as EVT advances the $800 million property divestment program, first outlined alongside its FY26 results. The group has sold Arawa Park Hotel in Rotorua, agreed the sale of LyLo Fremantle while retaining a management agreement, and is continuing discussions over 525 George Street.
Property sales are intended to fund growth and reduce debt
EVT’s property portfolio was independently valued at about $2.25 billion at 30 June 2026. Management says divestments will proceed only where value, timing and structure are appropriate, with proceeds earmarked for hotel expansion and debt reduction. Special dividends will be considered as value is realised, rather than promised as a fixed outcome.
The pipeline is moving in the opposite direction to the asset-sale program. Atura Oran Park is due to open next week, QT Parramatta is expected in early 2027, and Rydges Bangkok and a 387-bed LyLo property in Bangkok are targeted for 2028. EVT is also preparing to take the George and Market Street precinct to market later in calendar 2027, subject to conditions.
Structure review tests whether Hotels should stand more prominently
The strategic question is now less about whether Hotels is EVT’s growth priority and more about what corporate structure best supports it. Rothschild & Co continues to assess management’s recommendations on the group’s future structure, with the review proceeding within the FY27 timetable. No outcome has been announced.
EVT said Hotels remains the priority for future growth and capital deployment, while cinemas and Thredbo retain strong market positions and growth potential. The company’s FY26 update had already paired the structure review with a capital recycling plan, and the latest announcement indicates both initiatives remain active rather than resolved.
Thredbo weather exposes the limits of portfolio diversification
Thredbo EBITDA fell to $20 million, down $9 million, after the worst snow conditions in more than 40 years. Yield growth and cost control limited the damage relative to other poor seasons, but EVT expects full-year Thredbo EBITDA of $16 million to $20 million, subject to summer weather and winter conditions in June 2027.
The resort’s weaker quarter sits alongside a material fall in its independent valuation, from $292 million to $143 million during FY26. EVT attributed that valuation to recent winter conditions and the near-term capital required for chairlifts, snowmaking and compliance-related infrastructure. Against that uncertainty, the Hotels pipeline offers growth that is less directly tied to snow or film supply, but its success will depend on the group converting property recycling into profitable openings and management contracts.
Bottom Line?
The earnings start is strong, but the larger test is whether EVT can turn property recycling and the structure review into a more focused Hotels platform without losing the cash-generating value of cinemas and Thredbo.
Questions in the middle?
- Will Rothschild’s review recommend a materially different group structure, or reinforce EVT’s existing Hotels-led model?
- How much of the targeted $800 million property program can be realised at acceptable prices and within the stated three-year window?
- Can Thredbo’s infrastructure spending improve season reliability before weather-driven earnings volatility returns?