EVT shares rally as Q1 earnings top forecasts
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More news: Shares of EVT climbed in morning trade after the Event Cinemas owner reported a rise in first-quarter earnings.
EVT shares were up 5.2% to $14.07 at 11:35am AEDT, taking 12-month gains to 26.6%.
Citi analyst William Park said the trading update was "better than expected", with first-quarter EBITDA around double Citi's growth forecast.
What they said: "We maintain our Buy rating on the stock and expect Australia cinemas to improve into year-end underpinned by the upcoming launches of Avatar (Fire & Ash), Wicked: For Good, and Zootopia 3," said Park.
EVT delivers 21% EBITDA growth in first quarter
The news: Cinema and hospitality provider EVT has delivered first-quarter earnings growth of 20.7% compared to the previous corresponding period.
The numbers: EVT posted EBITDA of $61.8 million for Q1 FY26, which is $10.6 million higher year over year.
The entertainment segment posted an EBITDA gain of 53.1% to $11.8 million while Thredbo Resort posted EBITDA of $29 million, up 28.6% year on year. The hotels division posted EBITDA of $24.3 million, up 10% year on year.
EVT flagged that the hotels division is in line to “achieve another full year record result, including the anticipated post-completion contribution from the Pro-Invest acquisition”.
However, an overall negative impact of about $5 million is anticipated from Queenstown hotel and QT Gold Coast, with the latter weighted to the first half.
Thredbo is expected to deliver a full year EBITDA result of $26 million.
Property portfolio EBITDA is expected to return to the FY23 level of around $7 million per annum.
The context: EVT told the exchange that the hotels segment is its priority for future growth. This will be underpinned by EVT owned brands, independent brands under the independent collection and third party brands under the independent collection.
The entertainment segment is still progressing the “premiumisation of key locations whilst divesting or exiting marginal locations”. EVT is expecting full-year EBITDA growth for the segment, dependent on the critical December/January and June periods.
EVT also flagged a strong line up of films for November and December, including Wicked: For Good, Zootopia 2 and Avatar: Fire and Ash.
The source: ASX
