EVT shares slide as profit misses expectations, cinemas disappointment
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More news: Shares in EVT plunged in afternoon trade as the cinema and hospitality group posted FY25 net profit after tax below market consensus estimates and analysts were disappointed by the cinemas business.
At 12:45pm AEST, shares in EVT had slipped 13.6% to $14.81.
Citi analyst flagged that EVT’s result listed 10 different significant items worth a collective $9.3 million “with little explanation on them” and that underlying NPAT of $39 million missed Citi estimates by 9% amid “higher than expected tax and slightly lower sales”.
They also flagged that the EVT cinemas business posted 1.8% revenue growth, which was below the broader box office growth of 4%. However they noted disruptions from Tropical Cyclone Alfred in March 2025 given EVT has an outsized presence in Queensland.
What they said: “The relative underperformance of EVT’s Australian Cinemas compared to the market comes as a surprise (but the explanation may be understandable) and investors will seek clarity around how much of the further expected improvement in the box office EVT is likely to participate in,” Citi said.
EVT full-year profit hits $33m
The news: Cinema and hospitality group EVT has delivered a full-year net profit after tax of $33.4 million, up from $4.82 million in FY24 as the hotel group delivered record revenue and EBITDA.
The numbers: The market consensus expectation for EVT’s full-year net profit after tax was $44.1 million, according to Visible Alpha.
Total revenue and other income for FY25 increased by 2% from $1.23 billion to $1.25 billion, which is below analyst expectations of $1.26 billion.
A final fully-franked dividend of 22 cents per share was declared, which brought the total year fully-franked dividend to 38 cents per share. This is higher than the total dividend of 34 cents per share declared in FY24, and ahead of the expected 27 cents per share.
The context: EVT's hotel group posted record revenue and EBITDA despite difficult market conditions in parts of New Zealand, "the impact of Cyclone Alfred and the closure of Rydges Queenstown for refurbishment," the company told the exchange.
However, the impact of the 2023 Hollywood strikes on film supply hurt the entertainment first half result, according to EVT. Thredbo revenue was marginally up "despite the worst winter weather conditions in about 20 years, and EBITDA was impacted by snowmaking and grooming costs related to conditions".
EBITDA growth is expected in FY26 but the hotels division will face a $3.5 million set back due to the "temporary closure of Rydges Queenstown for upgrade works, and works required at QT Gold Coast". Thredbo is expected to deliver a full-year divisional EBITDA of between $25 million and $30 million.
What they said: "We continued to make solid progress with our group strategic initiatives," EVT CEO Jane Hastings said.
