Company Reports

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema division, labeled as the entertainment segment across Australia, New Zealand, and Germany, is dependent on discretionary expenditure and the popularity of films from studios, both Hollywood, independent, and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services, and the shortening of the release window from film to home format pose a longer-term earnings risk. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

EVT increased fiscal 2026 normalized EBITDA by 8% to AUD 174 million. The final fully franked dividend of AUD 0.23 brought the full-year total to AUD 0.41 per share, up 8%. The company has earmarked noncore properties worth AUD 800 million for sale, and a structural review is now underway.

Since EVT's trading update on April 24, 2026, shares are down 13%. While the group continues to expect earnings growth for the financial year, the Middle East conflict is beginning to hurt the hotel unit.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema division, labeled as the entertainment segment, is dependent on discretionary expenditure and popularity of films from studios, both Hollywood, independent and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema division, labeled as the entertainment segment, is dependent on discretionary expenditure and popularity of films from studios, both Hollywood, independent and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

EVT's fiscal 2026 first-half normalized EBITDA rose 6% to AUD 105 million, on similar growth in revenue to AUD 684 million. Normalized net profit grew 28% to AUD 40 million, aided by lower depreciation, interest, and tax costs. An interim fully franked DPS of AUD 0.18 was declared, up 13%.

EVT generates a material percentage of its earnings from cinemas across Australia, New Zealand, and Germany. We assess the implications for this segment from the takeover battle between Netflix and Paramount Skydance for Warner Bros Discovery, the owner of the prolific Warner Bros film studio.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema unit, labeled as the entertainment segment, is dependent on discretionary expenditure and popularity of films from studios, both Hollywood, independent and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

EVT delivered a 6% increase in fiscal 2025 normalized EBITDA (pre-AASB 16) to AUD 161 million, translating to a 13% lift in normalized net profit to AUD 39 million. The group declared a final fully franked dividend of AUD 0.22, bringing the full-year total to AUD 0.38, up 12%.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema division, labeled as the entertainment segment, is dependent on discretionary expenditure and popularity of films from studios, both Hollywood, independent and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

Shares in EVT have surged 37%, dividend-adjusted, since announcing its intention to sell its 525 George Street Sydney property on Feb. 24, 2025. We look at whether the increase in value is justified by the potential proceeds or their redeployment.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema unit, labeled as the entertainment segment, is dependent on discretionary expenditure and popularity of films from studios, both Hollywood, independent and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

EVT's fiscal 2025 first-half-year revenue declined 2% to AUD 649 million, but EBITDA (pre-AASB 16) lifted 4% to AUD 100 million. Hotels performed well, and there are positive signs in entertainment. Interim dividend increased 14% to AUD 16 cents, and there is a potential asset sale on the horizon.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema unit, labeled as the entertainment segment, is dependent on discretionary expenditure and popularity of films from studios, both Hollywood and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema unit is dependent on discretionary expenditure and popularity of films from studios, both Hollywood and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer-term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

Australian cinema box office figures from July to mid-December 2024 are up 37% from a year ago. Hotel occupancy across the industry is also edging up to over 70% in the nine months to September 2024, from under 69% a year ago.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema division is dependent on discretionary expenditure and popularity of films from studios, both Hollywood and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer-term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

We cut our fair value estimate for EVT by 7% to AUD 12.50 per share. Challenging operating conditions that led to the 19% slump in fiscal 2024 underlying EBITDA (pre-AASB 16) to AUD 151 million show no signs of easing.

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema unit is dependent on discretionary expenditure and popularity of films from studios, both Hollywood and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer-term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.

Shares in EVT remain at a 17% discount to our AUD 13.50 fair value estimate. We recognize the fiscal 2024 results are likely to contain some startlingly weak earnings, especially with respect to German cinema and Thredbo in the June half. However, these are caused by temporary factors likely to normalize, while solid fundamentals of the hotels unit underpin half of our intrinsic value assessment of the no-moat-rated group.