EVT earnings struck by bad weather at Thredbo resort
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The news: Entertainment and hospitality group EVT said its half-year results were blighted by its Thredbo ski resort experiencing the "worst winter weather conditions for nearly 20 years".
The numbers: EVT, previously known as Event Hospitality and Entertainment, reported normalised EBITDA of $96.1 million, down 10.8% year-on-year. The company saw growth in each of its divisions excluding Thredbo, which experienced a normalised EBITDA drop of 46.5% to $22.1 million compared to the prior corresponding period.
Its reported net profit fell 72% to $27.01 million compared to the December half of 2022. It said the comparable half year included $55.5 million relating to profit from the sale of The Miller Hotel and Darwin Cinema Centre, and proceeds from the settlement of the dispute with Vue relating to the 2018 CineStar Germany transaction.
However, the group posted a year-on-year revenue rise of 8.6% to $658.9 million, and declared an interim dividend of 14 cents per share, in line with 1H23.
By 1.21pm AEDT EVT shares were down 5.04% to $11.30.
The context: EVT's CEO Jane Hastings described the group results as "very solid" considering the weather impacts on Thredbo. After the ski resort brought in a record result in the previous first half, the 2023 winter saw unusually warm weather patterns and strong winds that resulted in key lifts not operating.
She noted that EVT's hotels and resorts division achieved growth in the first half and continued to seek offshore opportunities. The first half saw EVT secure its first Singapore hotel management deal.
Elsewhere, EVT's entertainment division was buoyed by a record market box office for the month of August due to the release of Barbie and Oppenheimer. However, the segment suffered delays to film releases due to Hollywood strike action.
The source: ASX announcement
