Strategy delivering with strong first half result
THURSDAY 20 FEBRUARY 2020
Entertainment, hospitality and leisure operator EVENT Hospitality & Entertainment Limited (“EVT”) today announced a half year result with Group revenue from continuing operations of $524 million, up 2% on the prior half year. Normalised profit from continuing operations before interest, tax and the impact of the new AASB 16 Leases accounting standard was $86.0 million, a decrease of 2.2%. Overall, statutory net profit after tax including discontinued operations was $93.6 million, an increase of 38.7%.
The result was impacted by a reduction in Entertainment gift card breakage revenue related to the legislated change in expiry dates of gift cards from one to three years, the impact of AASB 15 Revenue, the cessation of virtual print fee income in New Zealand, and the partial closure in March 2019 of Rydges Queenstown. After adjusting for these items, revenue for the Group was up 2.9% and normalised profit before interest and income tax expense was up 3.3%.
In announcing the result, EVT CEO Jane Hastings said: “The half year result was driven by strong results from the Entertainment group with adjusted profit up 7.4%, continued strong results from the Hotels division in a more competitive market with adjusted profit up 4.4%, and a good result from Thredbo despite less favourable ski conditions.”
“EVT’s Australian entertainment revenue was up 4% and profit was up 1% on an adjusted basis, underpinned by a record first half Australian box office. Our ‘future of cinema’ strategies are on track and delivering solid results. This includes growth in market share of blockbuster films, growth in admissions and average admission price with new cinema formats and a record merchandising spend per head strengthened by new food and beverage concepts. It was also pleasing to see an increase in the frequency of visits by Cinebuzz members despite the growing range of content options in the market”.
“The New Zealand circuit delivered a record result with normalised profit up 30%, or up 49% on an adjusted basis, outperforming the overall market with market share up four percentage points, admission growth up 6% with average admission price up 10% and merchandising spend per head up 6%.”
“Thredbo Alpine Resort revenue was relatively flat on prior year (+0.2%) with normalised profit marginally down 2.2%. The result was impacted by unfavourable snow conditions in the first peak trading period within the July school holidays. Pleasingly, Mountain Biking performance in summer continues to grow, being up 36%”.
“The Hotel division achieved another good result in a more competitive market with adjusted revenue flat and profit up on a comparative basis. Growth was achieved in occupancy, revenue per available room and owned hotel conference and events revenue. Solid operating strategies also improved gross operating profit margin. Pleasingly, many of our hotels outperformed their respective markets across all hotel brands.”