EVT shares surge as HY profit beats estimates by 83%
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The news: EVT shares soared in early trading after the Event Cinemas and Rydges Hotel owner comfortably eclipsed market expectations for first-half profit, driven by record earnings and margin improvement at its hotel portfolio.
The numbers: EVT shares were up 9.6% to $13.18 at 11:10am AEDT.
EVT reported normalised profit after tax of $31.5 million, up 8.3% year on year and 83% ahead of consensus forecasts of $17 million.
The group declared a dividend of 16 cents per share, topping expectations of a 10 cents-per-share payout.
The context: EVT said its hotels division achieved record earnings during the period, with strong margin improvement, as it continues to outperform competitors with improved customer sentiment and revenue per available room.
Despite a reduced blockbuster slate due to Hollywood strikes, EVT’s entertainment segment recorded a 25.3% rise in December cinema admissions in Australia and a 123.1% increase in December earnings.
Citi analysts said the performance of EVT's entertainment business in December "should silence structural bears on cinemas", while its film line-up in FY26 — featuring Avatar: Fire and Ash, Superman and Jurassic World: Rebirth — "seems impressive".
The sources: ASX, Citi research
