Release Date: August 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Underlying group revenue growth up 4% to $1.221 billion.
- Hotels division achieved a record result with revenue of $407.4 million, up 15.5%.
- Net debt of $304.1 million remains below pre-COVID levels, indicating a strong balance sheet.
- Successful completion of major milestones in the five-year IT transformation road map.
- Improvement in Net Promoter Scores and employee engagement scores across most parts of the business.
Negative Points
- Reported normalized EBITDA was down $35.7 million on the prior year.
- Entertainment EBITDA result adjusted for German government subsidies was down on prior year.
- Thredbo EBITDA was down $20.1 million due to materially worse winter conditions.
- Adjusted NPAT is down $12.9 million, in line with trading performance.
- Second half admissions across territories were down 14.1% year on year due to fewer blockbuster films.
Q & A Highlights
Highlights of EVT Ltd (ASX:EVT, Financial) Earnings Call Transcript
Q: Can you talk through some of the mechanisms you put to work to manage softer second half box office content?
A: We had very variable operating hours based on location and community preferences. This flexibility was key in managing the softer content period. - Jane Hastings, CEO
Q: What are your expectations for the second half box office?
A: We expect the box office to be in line or up year-on-year. The lineup includes several family titles and potential blockbusters like Mufasa, which could perform exceptionally well. - Jane Hastings, CEO
Q: Can you talk through the ROI for Rydges Melbourne and its performance for the year?
A: Rydges Melbourne is performing ahead of expectations, rebounding faster than anticipated. The market-leading conference facilities have been a significant contributor. - Jane Hastings, CEO
Q: How has your hotel portfolio tracked into the new financial year in terms of revenue or ADR pressure?
A: We continue to perform ahead of the market. Sydney and Melbourne markets are slightly down due to the absence of major events, but New Zealand markets like Auckland and Wellington are more significantly impacted. - Jane Hastings, CEO
Q: Can you provide a guide on CapEx for the next year or two?
A: We expect CapEx to be around $120 million to $130 million for the next financial year. This includes planning approvals and project timelines. - Jane Hastings, CEO
Q: What led to the second half loss in Germany?
A: The loss was primarily due to the Hollywood strikes, which resulted in a lack of films. Both Hollywood and local films were impacted, leading to record-low admissions. - Jane Hastings, CEO
Q: Can you explain the conditions required for Thredbo to achieve a flat result compared to the prior year?
A: We need some natural snowfall at the end of August and better conditions for the opening weekend. We are aiming for reasonable conditions rather than great ones. - Jane Hastings, CEO
Q: Is there any change in your strategic thinking regarding the realization of the property portfolio's value?
A: We continue to divest non-core assets and focus on a mix of owned and asset-light hotel growth. We are creating optionality for future decisions on the right mix of earnings. - Jane Hastings, CEO
Q: How do you manage pricing for lift tickets at Thredbo given weaker snow conditions?
A: We adjust prices based on conditions and demand, offering special deals to maintain competitiveness. Our day pass price is competitive, and we focus on providing a premium experience. - Jane Hastings, CEO
Q: Can you provide an update on the 458 George Street project?
A: We are in the detailed planning phase, focusing on leveraging the retail footprint and hotel extension. We are also assessing costs for the project. - Jane Hastings, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
