Key Highlights

• That combination, announced with the FY26 result in August 2026, is the central development to watch.

• For FY26, EVT reported normalised Revenue of $1,314.9 million, up 6.3%.

• Normalised EBITDA was $174.4 million, up 8.4%, and normalised profit after tax was $54.3 million, up 41.3%.

• Reported net profit after tax was $50.7 million, up 51.9%, partly helped by the effect of AASB 16, the Lease accounting standard.

What is EVT Limited (ASX:EVT) trying to change, and why does it matter to the company's owners? The short answer is that the hotel, entertainment and leisure group is reshaping itself around hotels. It plans to sell about $800 million of non-core property over roughly three years, while Rothschild & Co assesses whether its group structure still makes sense.

That combination, announced with the FY26 result in August 2026, is the central development to watch. No decisions have been made, and management has said the review may not lead to any structural transaction.

What EVT does and where the money comes from

EVT is a long-established Australian operator with three broad businesses. Hotels is the largest growth platform, built around two pillars: EVT Hotels & Resorts, which includes the QT brand, and Connect Hospitality. Entertainment covers cinemas and related venues. A third area includes Thredbo, the alpine resort in New South Wales, along with other property interests.

Revenue comes from room nights, food and beverage, cinema ticketing and concessions, and snow-season visitation. Property ownership sits underneath all of this.

FY26 results in brief

For FY26, EVT reported normalised revenue of $1,314.9 million, up 6.3%. Normalised EBITDA was $174.4 million, up 8.4%, and normalised profit after tax was $54.3 million, up 41.3%. Reported net profit after tax was $50.7 million, up 51.9%, partly helped by the effect of AASB 16, the lease accounting standard.

The board declared a final fully Franked Dividend of 23 cents per share, payable in September.

Hotels delivered record results. Revenue rose 5.1% and EBITDA rose 1.0%, supported by record revenue per available room of $184, occupancy of 79% and an average room rate of $233. Management said the second half was weaker, affected by the Middle East crisis, but described underlying Demand as intact.

Entertainment was the standout on Earnings growth. Revenue rose 7.7% and EBITDA rose 45.8% despite a smaller venue footprint. Thredbo revenue rose 10.6% and EBITDA rose 13.7%.

The $800 million asset sale and the structure review

EVT has identified about $800 million of non-core property for sale on a "value-first basis". Proceeds are intended to support hotel growth, and the board will consider special dividends. Timing matters here. The George and Market Street precinct, including QT Sydney, is not expected to go to market until the first or second quarter of 2027, and the sale of 525 George Street is taking longer because of its mixed-use components. Management declined to quantify the tax consequences.

Separately, an Independent Board Committee has engaged Rothschild & Co to test management's recommendations on the future group structure. Work is expected to run through FY27. Chief executive Jane Hastings was reported as saying "everything is genuinely on the table", though no outcome is assured.

Net Debt was $476.1 million at 30 June 2026, and the debt Facility was renewed in March for three years with an overall limit of $750 million.

Sector conditions and competitive position

Australian hotel performance has been supported by encouraging rates and occupancy, but international travel patterns can shift quickly. EVT pointed to the Middle East crisis as a drag on the second half of FY26. It also said August 2026 was pacing ahead of the prior year, with a good forward position for September and October.

In cinemas, the Business competes with streaming and with other exhibitors, and has been working through its lease portfolio. About 13 more locations are to be exited or renegotiated over three years. The targeted $10 million EBITDA uplift from that program assumes all are exited, so execution matters.

Outlook for FY27

Management expects further EBITDA growth in FY27 and another record year for Hotels, supported by major redevelopment projects. Connect Hospitality is performing at the upper end of its $8 million to $9 million earnings guidance, and new venues such as QT Auckland are expected to contribute.

The incremental FY27 hotel EBITDA contribution was cut from $17 million to about $13 million because of project delays. QT Queenstown is running about four months late, and works at QT Gold Coast linked to the LyLo development are disruptive. Together these reduce FY27 EBITDA by about $4 million.

Thredbo is tracking below the prior year because of poor natural snow.

Index status

The index provider announced on 4 September 2026 that EVT would be removed from the S&P/ASX 200 before the open on 21 September 2026. EVT is therefore no longer a constituent of that index, which can affect who owns the stock and how it trades. A later quarterly review is due in December 2026, and any change would be announced then.

The revalued property portfolio of about $2.25 billion, set against net debt of $476.1 million, is one reference point investors may weigh, though the carrying values are management and valuer estimates.

Risks and what to watch

Several uncertainties stand out. Asset sales may take longer or realise less than expected, and tax leakage is unquantified. The structure review could change the group in ways that are hard to model. Redevelopment delays have already trimmed FY27 expectations, and weather can swing Thredbo's results sharply.

Hotel demand also depends on travel flows, consumer confidence and geopolitical events. Cinema earnings depend on film slates and lease outcomes.

Upcoming items include further updates on the sale program and the Rothschild-led review, plus trading commentary through the first half of FY27.