Profit Growth and Divestment
EVT Profit Jumps 52% as Company Plans $800 Million Property Divestment Program
Key Points
In Germany, CineStar admissions rose 9.5%, revenue grew 17.2%, and EBITDA jumped 254.8%, underscoring a surprisingly strong cinema segment outside Australia.
The Thredbo division recorded revenue growth of 10.6% and EBITDA growth of 13.7%, contributing to EVT’s broad entertainment strength alongside the group’s film slate.
The Hotels division posted a year with revenue up 5.1% and EBITDA up 1.0%, with RevPAR described as a record for the year, signaling ongoing hotel-led momentum.
EVT’s property portfolio was independently valued at about $2.25 billion as at 30 June 2026, highlighting the scale of the assets EVT is managing amid its divestment and growth plans.
The asset-divestment program targets roughly A$800 million of non-core properties over three years, including the Sydney George Street precinct (458-472 George Street) with development approval obtained and 525 George Street already in the market; two additional small German freehold properties are also part of the plan, with proceeds earmarked for hotel growth and potential special dividends.
Event Hospitality & Entertainment (EVT) delivered a sharp profit jump for FY2026, with profit after tax surging 51.9% to A$50.7 million despite modest revenue growth of 5% to A$1.32 billion Kalkine. The company's hotels division hit record RevPAR levels while its entertainment arm posted strong gains, buoyed by a leaner portfolio and improved film slate.
EVT is now pivoting aggressively toward hotel-led growth. The company flagged an A$800 million non-core asset-divestment program over three years Fool and commissioned Rothschild & Co to explore potential group-structure changes, signaling a major strategic reset around its real-estate portfolio valued at roughly A$2.25 billion.
Hotels Post Record RevPAR While Entertainment Tightens Portfolio
The Hotels division delivered revenue growth of 5.1% alongside a record year for RevPAR (revenue per available room) Fool, though EBITDA growth slowed to just 1.0%. EVT's Entertainment segment performed far stronger, with EBITDA jumping 8.4% to A$174.4 million across the group Kalkine.
The Entertainment arm cut its portfolio by 11 sites year-on-year under EVT's 'Fewer Better' strategy Fool. Thredbo posted revenue growth of 10.6% and EBITDA growth of 13.7%, while Germany's CineStar admissions climbed 9.5% with revenue rising 17.2% and EBITDA surging 254.8% Kalkine.
EVT Targets $800M in Non-Core Asset Sales Over Three Years
EVT identified roughly A$800 million of non-core properties for divestment to fund hotel expansion StockWire X. The sale program includes Sydney's George Street precinct (458–472 George Street), which has secured development approval, plus 525 George Street already on the market.
Two small German freehold properties are also part of the plan StockWire X. Sale proceeds will flow toward hotel growth and potential special dividends to shareholders, with the portfolio's overall value now pegged at A$2.25 billion as of June 30, 2026.
Rothschild Review Signals Potential Major Structural Changes Ahead
EVT commissioned Rothschild & Co to assess potential group-structure options under independent oversight StockWire X. The review suggests the company is open to significant changes, though management stressed there is no certainty any transaction will occur.
The move underscores EVT's push to optimize its sprawling asset base while returning capital to shareholders. EVT declared a fully franked dividend of A$0.23 per share for the twelve months ended June 30, 2026, with payment scheduled for September 24, 2026 TipRanks.
Profit Leap Masks Uneven Segment Performance Across Group
While normalised PAT climbed 41.3% to A$54.3 million Fool, the 51.9% reported PAT jump reflects one-off items and non-cash adjustments. Hotels' modest EBITDA growth of 1.0% signals market headwinds despite record RevPAR — a signal that room yields have peaked even as rates climb.
Entertainment's stronger EBITDA gain of 8.4% came from film-slate improvements and leaner operations Kalkine. FY27 guidance remains contingent on film performance, weather conditions, and broader market trends, suggesting management sees volatility ahead for both hospitality and entertainment earnings.
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