Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
EVT Shares Edge Higher as First-Quarter EBITDA Jumps 17% and Hotels Growth Strategy Advances
Highlights:
EVT Limited (ASX: EVT), an entertainment, hospitality and travel group, outlined stronger first-quarter earnings and progress on its hotel expansion strategy in an announcement dated 23 October 2026. The update, released alongside the company’s Annual General Meeting (AGM), highlighted improved entertainment performance, property portfolio initiatives and a review of the group’s future structure. EVT shares were last quoted at AU$14.920, up AU$0.019 or 0.134%, according to the supplied market data.
First-Quarter Earnings Improve
EVT reported normalised group earnings before interest, tax, depreciation and amortisation (EBITDA) of AU$72.5 million for the first quarter, excluding the impact of AASB 16 Leases. This represented an increase of AU$10.7 million, or 17%, compared with the previous corresponding quarter. The Entertainment division recorded EBITDA of AU$32.0 million, up AU$20.2 million year on year. Strong film performances supported admissions growth of 19%, while EBITDA increased 171%. The division also achieved its second-highest first-quarter box office result, despite operating around 30 fewer locations than before COVID-19.
Hotels generated EBITDA of AU$23.9 million, a marginal decline of AU$0.4 million. Occupancy remained at 80%, while average room rates increased 3.2%, demonstrating continued operating strength despite a challenging comparison with the previous year’s British and Irish Lions tour. Thredbo recorded EBITDA of AU$20.0 million, down AU$9.0 million, reflecting the weakest snow conditions in more than 40 years.
Property Divestments and Hotel Expansion
EVT is progressing a capital recycling program targeting approximately AU$800 million in non-core property sales over three years. Proceeds are intended to fund hotel expansion and reduce debt, while special dividends may also be considered. During the quarter, EVT completed the sale of Arawa Park Hotel in Rotorua and agreed to sell LyLo Fremantle while retaining a long-term management agreement.
The group is also expanding its hotel pipeline. Atura Oran Park is scheduled to open shortly, followed by QT Parramatta in early 2027. Further international growth includes a Rydges hotel in Bangkok, expected to open in 2028, and a secured 387-bed LyLo property in the Thai capital.
FY27 Outlook and Strategic Review
Management maintained its expectation of group EBITDA growth in FY27, subject to film releases, weather and broader market conditions. The Hotels division is forecast to achieve another record result, supported by approximately AU$13 million in incremental EBITDA from strategic investments and hotel developments. EVT is also reviewing its group structure with Rothschild & Co to assess opportunities to enhance shareholder value. Hotels remains the priority for future growth, although management continues to recognise the potential of its cinema and Thredbo businesses.
Conclusion
EVT’s latest update highlights improved first-quarter earnings, a growing hotel pipeline and plans to unlock value from selected property assets. However, the FY27 outlook remains sensitive to external conditions, particularly film performance and weather.
Note: All data presented is based on information available at the time of writing.
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