EVT Ltd posts profit jump and pivots focus to hotel growth in FY26 results

EVT posts strong FY26 results, shifts focus to hotels

EVT Ltd, the entertainment and hotel group controlled by the billionaire Rydges family, has reported a significant jump in full-year profit and outlined a strategy to divest non-core property assets to fund further hotel expansion.

For the year ended June 30, the company reported normalised revenue of $1.31 billion, up 6.3% from the prior year, and normalised profit after tax of $54.3 million, a 41.3% increase, as reported by The Motley Fool Australia. Normalised EBITDA rose 8.4% to $174.4 million, while reported net profit after tax was $50.7 million, up 51.9%. The company declared a final fully franked dividend of 23 cents per share.

The hotels division delivered record results, with revenue up 5.1% and EBITDA up 1.0%, underpinned by strong revenue per available room, according to The Motley Fool. The entertainment division rebounded with revenue up 7.7% and EBITDA up 45.8%, despite a smaller venue footprint. The Motley Fool noted that the company's share price has declined 3.5% over the past 12 months, underperforming the S&P/ASX 200 index.

Strategic review and asset divestment

EVT has identified approximately $800 million in non-core property assets for divestment over the next three years, a plan that The Motley Fool said is set to support further hotel growth and possible special dividends. The company has engaged Rothschild & Co to conduct an independent review of its group structure, overseen by an Independent Board Committee, to maximise the value of hotel opportunities and returns for shareholders.

The Australian Financial Review reported that EVT could put some of its tourism assets on the market, including assets that stretch from its Event Cinemas chain to the Thredbo ski resort. The AFR said the company plans to sell about a third of its $2.5 billion property portfolio and may consider offloading more assets as part of the review. EVT also runs the QT and Rydges hotel chains.

CEO commentary and outlook

CEO Jane Hastings said hotels are the company's primary future growth platform, with momentum continuing across its two growth pillars, EVT Hotels & Resorts and Connect Hospitality. "We have identified approximately $800 million of non-core property for divestment on a value-first basis to support hotel growth while the Board will also consider potential special dividends," she said, as quoted by The Motley Fool. She added that management has developed options for the future group structure to support hotel growth ambitions and long-term shareholder value, with Rothschild & Co engaged to independently assess those options.

Looking ahead, EVT expects further EBITDA growth in FY27, with the Hotels division expected to deliver another record year, according to The Motley Fool. Connect Hospitality and newly launched venues like QT Auckland are expected to contribute around $13 million in additional EBITDA. The company noted that short-term impacts from development works and weaker snow conditions may temporarily affect some divisions.