EVT Ltd Outlines FY26 Profit Surge and $800M Property Divestment Plan

EVT delivers FY26 profit surge as all three divisions fire

In its FY26 results presentation released on 24 August 2026, EVT Limited outlined a year of broad-based growth, with its Entertainment, Ventures and Travel divisions all contributing to a stronger group result for the year ended 30 June 2026.

Management reported Group Normalised Revenue of $1,314.9m, up 6.3%, and Group Normalised EBITDA of $174.4m, up 8.4%. Reported net profit after tax rose 51.9% to $50.7m, while the fully franked dividend increased 4.5% to 23 cents.

The presentation centred on three strategic pillars: continued momentum in the Hotels growth strategy, a planned divestment of roughly $800m of non-core property, and an independent review of the Group’s structure. Together, management framed these as an earnings-led shareholder-return story, combining profit strength with capital recycling and a special dividend to be considered.

FY26 results at a glance

The group scorecard below summarises the headline financial movements management presented for the period.

Divisional EBITDA drivers behind the group result included:

• Hotels: EBITDA up 1% (underlying +3.2%), with Q4 impacted by the Middle East crisis.

• Entertainment: EBITDA up 45.8%, supported by the ‘Fewer, Better’ strategy and a stronger film slate.

• Thredbo: EBITDA up 13.7%.

Hotels positioned as EVT’s priority growth platform

Management presented Hotels as the group’s priority growth platform, spanning 101 hotels and 16,042 rooms across two distinct pillars.

Two growth pillars explained

The first pillar, EVT Hotels & Resorts, comprised 84 hotels and 12,603 rooms. It covers the group’s owned EVT brands alongside the EVT Independent Collection, positioned to owners under the “your brand, our backing” proposition, allowing them to retain their own brand while accessing EVT’s distribution and services.

The second pillar, Connect Hospitality, provides third-party hotel management and comprised 17 hotels and 3,439 rooms. The Pro-invest Hotels acquisition, which added 15 hotels, was completed during the year, with a further two hotels added in 2026. Management noted Connect Hospitality EBITDA landed at the higher end of the $8m–$9m range.

Development pipeline, strongest on record

Management described the development pipeline as the strongest on record, with new hotels flagged across Australia, New Zealand, Fiji and South East Asia:

• Rydges Bangkok (2028, 165 rooms), marking Rydges entering Bangkok and South East Asia

• Atura Oran Park (late October 2026, 184 rooms)

• QT Parramatta (early 2027, 265 rooms)

• Rydges Tauranga, New Zealand (late 2028, 158 rooms)

• Rydges Wailoaloa Beach, Fiji (mid 2029, 258 rooms)

• LyLo Gold Coast (July 2028, 296 pods and 46 private rooms)

• QT Auckland (acquired late March 2026, approximately AU$76 million)

Trading performance held up despite external shocks

The presentation detailed record RevPAR results, with occupancy near pre-COVID levels and all brands performing ahead of market. Rate growth was supported by major events including the Lions and Ashes tours. Management noted the fourth quarter was impacted by the Middle East crisis, with Q1 FY27 volatility easing and good September and October pacing.

*QT figures reflect temporary works at QT Gold Coast and the upgrade of QT Queenstown. Excluding these impacts, management noted QT RevPAR was up 4.9%.

The ~$800m capital recycling play

Management outlined a capital recycling strategy that positions the group’s property book to fund its asset-light hotel growth. The total property portfolio was valued at approximately $2.25bn, of which roughly $800m of non-core properties are to be divested on a “value-first basis” over the next 2–3 years.

A key mechanic is that hotels are to be retained under management agreements where feasible, with proceeds recycled into hotel growth and a special dividend to be considered. The conditional nature of that special dividend was preserved throughout the presentation.

EVT’s $750m refinancing, completed in March 2026 with all four major Australian banks, cut the margin range materially from the prior facility and left the group with approximately $230 million in available liquidity to support its hotel growth agenda.

Assets flagged for divestment included:

• George and Market Street precinct, Sydney CBD (including QT Sydney, the State Theatre, Gowings retail, EVT’s head office and the 458–472 George Street development site)

• 525 George Street, Sydney CBD

• QT Canberra

• Rydges Parramatta

• Atura Albury

• CineStar Neumünster and CineStar Stade, Germany

• Arawa Park Rotorua, New Zealand

• 100 Cable St, Wellington, New Zealand

During FY26, the group sold Rydges Geelong for AU$24.5 million.

Understanding EVT’s diversified model

For readers less familiar with the group, EVT stands for Entertainment, Ventures and Travel. The Entertainment division covers cinema exhibition across Australia and New Zealand, alongside Germany’s CineStar. The Ventures and Travel side spans hotels and hospitality plus the Thredbo alpine resort, all supported by a large owned-property book.

This diversification matters to investors because the divisions can offset one another. Entertainment delivered a strong second-half EBITDA surge, while Hotels experienced softening in the fourth quarter.

Management also referenced an “AI is our new front door” theme, describing how customers discover, book and compare, alongside internal productivity gains.

Entertainment and Thredbo round out a strong year

Entertainment rebounds hard

The Entertainment division delivered admissions up 3.6% and revenue of $770.5m, up 7.7%, with EBITDA rising 45.8% to $63.4m despite operating 11 fewer locations. Second-half EBITDA rose 173.1% as film supply improved.

Germany was a standout, with EBITDA lifting from $5.5m to $19.4m, up 254.8%. Management attributed the result to the ‘Fewer, Better’ operating leverage and premiumisation upgrades, including IMAX, 4DX and ScreenX rollouts.

Thredbo delivers record yield

Thredbo reported revenue up 10.6% and EBITDA of $21.0m, up 13.7%. Winter yield ran approximately 80% above pre-COVID levels, though summer was impacted by January bushfires. The resort was again named ‘Australia’s Best Ski Resort’ at the World Ski Awards for the ninth year and became the first Australian resort to achieve EarthCheck Platinum certification.

Group structure review and FY27 outlook

To capitalise on hotel growth and maximise shareholder returns, management recommended that Group structure options be independently reviewed by Rothschild & Co.

Looking ahead, management presented a positive FY27 outlook centred on continued EBITDA growth:

• Hotels: expected to deliver another EBITDA record year, including an approximate $13m contribution from new strategic initiatives across Connect Hospitality, QT Auckland and QT Queenstown.

• Entertainment: expected to deliver strong first-half EBITDA growth, subject to film performance and release date changes.

• Thredbo: FY27 EBITDA expected to be below FY26 due to conditions, with a further update to be provided at the AGM.

Taken together, a targeted record hotels year, the capital recycling programme and the structure review present multiple potential re-rating catalysts.

What it means for investors

EVT’s FY26 results presentation combined earnings momentum with a clearly articulated forward strategy. The diversified model demonstrated its resilience during the year, with Entertainment strength offsetting a softer fourth quarter in Hotels.

For investors, the optionality embedded in the roughly $800m divestment programme, the special dividend to be considered, and the Rothschild-led structure review sit alongside a targeted record year for the Hotels platform.

Key strategic priorities

Management positioned Hotels as EVT’s priority growth platform, describing a significant long-term growth opportunity across its two pillars. With owned hotel major upgrades largely complete, the focus shifts to accelerating asset-light growth, funded by non-core property divestments on a value-first basis and supported by a future Group structure now under review.

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