EVT shares drop after first quarter profit slump
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More news: Shares in EVT dropped nearly 3% to $10.77 in early trading on the ASX after the owner of Event Cinemas and Rydges Hotel chains reported a slide in first quarter earnings.
Citi analysts said the 30% drop in earnings from a year ago was materially below their estimates.
They also noted EVT flagging that the short-term hotel outlook could be challenged due to subdued trading in key markets and cycling the Taylor Swift 3Q24 benefit.
What they said: "While 2Q25 should see a better performance due to an improving film slate, the 1Q25 update still seems below expectations. Entertainment earnings fell -74% on pcp in 1Q25, while Thredbo was down -11% and hotels flat," the analysts said in a note.
EVT Q1 earnings slide as it prioritises hotels for growth
The news: Entertainment and hospitality group EVT has reported a slide in first quarter earnings amid poor weather at its Thredbo resort and a weak lineup of movies affecting results at its cinema chain.
The numbers: Group’s earnings for the three months to June was down $22.3 million from a year ago to $51.2 million. While the entertainment division earnings slumped 74% from a year ago, Thredbo earnings were down 10.7% and its hotels division was up 0.4%.
The context: The Event Cinemas and Rydges Hotel owner said given the variable nature of the group’s operating businesses, it was a good result, being only 4% below pre-COVID levels.
It said the movie line-up for FY25 remains somewhat impacted by the 2023 Hollywood strikes, but there is a more consistent supply and a solid line-up of films for the Christmas period. It expects a lower full-year result at Thredbo due to conditions being more challenging, but said it is considering investment in all-weather snowmaking for the resort.
EVT said its strategic update has identified the hotels business as the priority growth segment for the group. The company announced a further potential $40 million of property for sales in the next 12 months, and said it is considering options for two prime Sydney CBD properties.
The source: ASX announcement
