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Group Normalized Revenue: $1.2 billion, up $15.6 million from the prior year. Group Normalized EBITDA: $160.8 million, up $9.5 million. Net Debt: $311.9 million as of June 30, broadly in line with the prior year's $304.1 million. Reported Net Profit After Tax: $33.4 million, up $28.6 million. Entertainment Australia and New Zealand Revenue: Up 4.7% in the second half. Entertainment Australia and New Zealand EBITDA: Up 12.7% in the second half. Hotels Division EBITDA: Just over $106 million. Thredbo Revenue: Up 1.5% despite challenging weather conditions. Thredbo EBITDA: Down $1.2 million due to increased snowmaking and grooming costs. Property Portfolio Value: Approximately $2.3 billion, a 15% increase since 2020. Final Dividend: $0.22 per share, fully franked. Hotel Occupancy: Up 2 points to 78.7%. Average Room Rate: Approximately $228. RevPAR: Up 2.9% to $179. Pro-Invest Hotels Acquisition: Expected to deliver annual EBITDA of $8 million to $9 million.

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Release Date: August 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Group normalized revenue increased to $1.2 billion, driven by Hotels & Resorts, Entertainment Australia, Thredbo, and Property. Group normalized EBITDA rose to $160.8 million, showcasing resilience despite market challenges. The Hotels division achieved a record EBITDA of over $106 million, indicating strong performance. The company declared a fully franked final dividend of $0.22 per share, reflecting confidence in future growth. The acquisition of Pro-Invest Best Hotels is expected to unlock future growth potential in the Hotels division.

Negative Points

The impact of ex-tropical cyclone Alfred resulted in an estimated EBITDA loss of around $3 million. The Entertainment division faced a 4.8% decline in admissions due to the 2023 Hollywood strikes. New Zealand's market underperformed, with a reported EBITDA loss of $1.9 million. The closure of Rydges Queenstown for renovations impacted EBITDA by around $1 million. The German market was affected by a heatwave and unfamiliarity with certain blockbuster films, impacting admissions.

Q & A Highlights

Q: Can you explain how the acquisition of Pro-Invest fits with your existing hotel assets and brands? Is there any potential conflict with your current strategies? A: Jane Hastings, CEO: We're excited about the acquisition as it allows us to offer a comprehensive solution in the market. Pro-Invest will operate as a separate arm within our Hotels division, focusing on growth. We've received positive feedback from the hotels we will manage, and this acquisition fills a gap in our capabilities by allowing us to manage existing brands while leveraging our expertise. Matthew Duff will lead this new division, and we see it as a significant growth opportunity.

Story Continues

Q: The implied tax rate was higher than expected. Can you explain what drove this increase? A: Gregory Dean, Director of Finance and Accounting: The higher effective tax rate is due to un-booked German tax losses. Unlike Australia and New Zealand, where losses can be shared between companies, German tax losses are siloed within the company they were incurred. This complexity in the German tax system led to the increase in the effective tax rate.

Q: What was the overall impact of the cyclone on your financials, and does it include the closure of the Bazar restaurant? A: Jane Hastings, CEO: The cyclone had a $3 million impact on EBITDA this financial year, with $2 million affecting hotels and $1 million cinemas. The Bazar restaurant closure is included in this $3 million impact and will also contribute to a $1 million impact in the first half of the next financial year.

Q: How do you view the potential for global expansion, particularly in Asia, with your current strategies? A: Jane Hastings, CEO: We believe our brands can perform well internationally, and with our three growth strategies, we have opportunities for asset-light expansion offshore. We will explore these opportunities further in the future.

Q: Regarding the debt refinancing, do you expect to secure better terms? A: Gregory Dean, Director of Finance and Accounting: We have made significant progress since our last refinancing three years ago, and we expect to secure better terms in the upcoming refinancing process. We will see how the market evolves over the next six months.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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