Fund Manager Summary on EVT Ltd (ASX:EVT)
EVT Ltd (ASX: EVT) is currently viewed positively by fund managers, particularly following its strong Q1 trading performance, which showcased a significant EBITDA increase across all divisions. The recovery in the cinema sector, spurred by an impressive slate of upcoming blockbusters and improved visitor spending, is a primary driver of optimism. Fund managers highlight the ongoing divestment of key properties, notably the 525 George Street sale, as a strategic move that could unlock substantial capital, further enhancing the company’s flexibility and enhancing shareholder value. However, risks persist due to previous earnings headwinds affected by external factors like the Hollywood strikes and adverse weather conditions impacting Thredbo. Despite these challenges, the alignment of management incentives with shareholder interests and the substantial property backing provide a safety net that could support long-term growth.
Commentary From The Managers
There are 13 insights from 7 fund managers regarding their investment in EVT Ltd (ASX:EVT) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Perpetual Asset Management
31 Oct 2025
$14.49
Summary
- EVT Limited contributed positively to portfolio performance in October, with a 10.9% increase for the month.
- The company’s Q1 trading performance showed a significant EBITDA of $61.8 million, up $10.6 million, marking a 20.7% increase.
- All operating divisions experienced growth compared to the prior year.
- The Entertainment Group saw earnings rise by 53.1% for the quarter, with Germany as a standout market, driven by the success of the local film Das Kanu des Manitu.
- Thredbo benefited from improved winter conditions, resulting in a 28.6% increase in earnings for the quarter.
- The Hotels division achieved a record Q1 result, with earnings lifting by 10.0% for the quarter.
- EVT’s property and hotel portfolio continues to represent a source of embedded value.
- The company’s strong balance sheet provides flexibility during periods of softer cinema trading.
- Perpetual Asset Management continues to hold EVT as the company is well positioned to achieve another full year record result, with ongoing scope for earnings growth across all divisions.
Perennial Partners
31 Oct 2025
$14.49
Summary
- Perennial Partners' update: Perennial Partners updates their investment thesis on EVT following a strong 1Q26 trading update.
- EBITDA up 21% YoY: 1Q26 results showed EBITDA growth of ~21% year‑on‑year, indicating improved underlying profitability.
- Hotels division momentum: Continued momentum in the Hotels division is a key driver of near‑term earnings strength.
- Thredbo uplift: A strong uplift in Thredbo contributed meaningfully to the quarterly performance and outlook.
- Improved Cinema slate: An enhanced cinema release slate provides upside to box‑office revenue expectations.
- Asset divestments in progress: Ongoing divestment of key Sydney CBD assets is expected to unlock additional value.
- Positive outlook: Perennial Partners sees a stronger outlook supported by operational momentum (Hotels/Thredbo), cinema slate improvements, and potential upside from asset sales.
- Key catalysts: Near‑term catalysts include cinema box‑office performance, successful execution of Sydney asset divestments, and continued Hotels/Thredbo demand.
- Key risks: Execution risk on divestments, box‑office variability, seasonality/weather impact on Thredbo, and broader consumer demand remain factors to monitor.
- Disclaimer: This is an update to Perennial Partners' investment thesis and is not financial advice.
SG Hiscock & Company
31 Aug 2025
$14.07
Summary
- SG Hiscock & Company notes that EVT Limited (ASX: EVT) experienced a decline of 17.4% in August due to external factors such as weather disruptions and the Hollywood strikes.
- Despite these challenges, the underlying trends in EVT's performance are encouraging.
- The Entertainment division is demonstrating clear operating leverage with the return of blockbuster content.
- Looking ahead to FY26, a stronger film slate is anticipated, which is expected to support recovery in cinema admissions and earnings.
- The recent acquisition of Pro-Invest in the Hotels division adds a scalable, asset-light growth pillar.
- SG Hiscock & Company believes the market has yet to fully recognize the potential of this scalable platform.
- EVT's strong property portfolio and pipeline of brand initiatives position the company well to unlock long-term value despite potential near-term volatility.
Perpetual Asset Management
31 Aug 2025
$14.07
Summary
- EVT Limited detracted from portfolio performance in August, finishing down -17.4%.
- Full-year results showed Group revenue and EBITDA growth, but highlighted softness in cinema operations.
- Entertainment admissions slower to recover than expected; Australian and German media revenues were weaker.
- Weak performance attributed to variability in blockbuster film pipeline and timing of releases.
- Hotels and Resorts delivered solid results with higher occupancy rates and improved revenue per room.
- Gains in Hotels and Resorts insufficient to offset the drag from entertainment.
- Investor sentiment impacted by limited visibility on near-term catalysts and cautious management outlook.
- Despite headwinds, EVT’s property and hotel portfolio remains a source of embedded value.
- Strong balance sheet provides flexibility during periods of softer cinema trading.
- There is scope for earnings recovery as the film slate normalizes.
- Near-term performance likely to be influenced by volatility of entertainment revenues.
Wilson Asset Management
31 July 2025
$17.00
Summary
- EVT is a diversified Australian leisure and property company with operations across cinemas, hotels, and commercial property.
- It owns and operates the largest cinema chains in Australia and New Zealand.
- Manages a growing hotel platform under the QT, Rydges, and Atura brands.
- Holds a high-quality property portfolio, including flagship assets such as 525 George Street, Sydney.
- Wilson Asset Management continues to hold EVT for its founder ownership and the significant opportunity to unlock value from its property portfolio.
- The hotels division is delivering consistent growth with a clear and efficient path to scale.
- This growth potential is not limited to Australia, with expansion into Asia possibly offering further upside.
- The company’s large property assets provide downside protection and an underappreciated source of capital.
- An example is the announced sale of 525 George Street, Sydney, which has a clear catalyst to unlock capital.
- This capital can be reinvested into hotels or capital management initiatives.
- Wilson Asset Management sees multiple catalysts ahead for the company, including potential strong earnings over the next few years.
- Asset sales and clarity on capital deployment are also anticipated.
- Over time, the market is likely to reward the company for shifting from a passive asset holder to an active capital allocator, focused on return and growth.
Oracle Advisory Group
30 June 2025
$16.65
Summary
- Oracle Advisory Group has reduced their position in EVT by 2% after a significant 40% gain since the beginning of the year.
- The gain was driven by strong earnings and a recovery of the cinema business.
- The original investment thesis focused on the undervaluation of EVT's property portfolio.
- With the share price now exceeding $16, it aligns with their DCF valuation, indicating much of the potential upside is realized.
- Potential for further upside exists if the company explores a property sale on George Street, Sydney.
- There is also the possibility of a special dividend, leading Oracle Advisory Group to maintain a partial position in EVT.
Perpetual Asset Management
30 June 2025
$16.65
Summary
- Perpetual Asset Management notes the portfolio’s overweight to EVT Limited positively impacted relative performance over the June quarter (+25.1%).
- The stock is re-rating as the market addresses the disconnect between asset value and share price.
- Recent announcement of a sale process for the prime 525 George Street property is seen as a significant milestone, unlocking value from EVT’s high-quality real estate portfolio.
- There is a recovery in cinema earnings underway, with spend per visitor continuing to grow.
- Perpetual Asset Management remains constructive on EVT’s outlook, highlighting ongoing earnings recovery and embedded property value.
- Potential for capital management is viewed as a catalyst for further upside.
Perpetual Asset Management
31 May 2025
$16.20
Summary
- Perpetual Asset Management highlights that the portfolio’s overweight to EVT Limited contributed positively to performance in May, with a gain of 15.0%.
- EVT's share price appreciated despite a lack of announced news, indicating investor confidence.
- The initial position in EVT was based on the share price reflecting only the value of its property portfolio, undervaluing its operating businesses.
- A recovery in cinema earnings is underway, bolstered by an improving box office pipeline and increased spend per visitor.
- Operating leverage in cinemas is viewed as underappreciated, given the fixed-cost nature of the business model.
- EVT's hotel and property assets present embedded value, with planned divestments and strategic reviews serving as near-term catalysts.
- As earnings momentum builds and asset-level transparency improves, Perpetual Asset Management maintains conviction in EVT.
- There is an expectation that the market will narrow the valuation gap implied by EVT's current trading levels.
Oracle Advisory Group
31 Mar 2025
$13.31
Summary
- Oracle Advisory Group has enhanced its position in EVT, a major player in Australia’s cinema sector.
- The decision is grounded in the belief that property valuations are stabilising.
- The cinema industry is expected to recover notably in 2025 and 2026.
- Recent disruptions from the Hollywood writers’ strike have created a backlog of potential blockbusters.
- Oracle increased their stake at a price below EVT’s property portfolio value, indicating a strategic advantage.
- This approach allows the market to perceive the cinema business as essentially cost-free.
- Positive company outlook led to market recognition of EVT’s value, contributing to a 23.4% increase in share price during February.
Cooper Investors
31 Mar 2025
$13.31
Summary
- EVT Ltd (EVT) was a key contributor to performance over the March quarter.
- 1H25 results surpassed market expectations.
- EVT operates in the entertainment, hospitality, and leisure sectors, managing hotels (QT, Rydges), cinemas (EVENT), and Thredbo Alpine Resort.
- Cooper Investors was attracted to EVT's value latency from significant property backing (> $12.00/share), indicating a low multiple for its operating business.
- The market is currently overreacting to recent earnings headwinds due to poor Thredbo snow seasons and the Hollywood writers’ strike affecting blockbuster releases.
- Management is streamlining the business model and recycling capital through divestment of non-core assets.
- Cooper Investors believes improvements will be more evident as the operating environment improves.
- Strong insider ownership, particularly from Chair Alan Rydge, aligns shareholder interests with management.
- Cooper Investors continues to hold because of the strong delivery track record being built by current management.
Wilson Asset Management
28 Feb 2025
$14.60
Summary
- EVT operates cinemas, hotels, restaurants, and resorts across Australia, New Zealand, Germany, and Singapore.
- In February, the company announced its FY2025 half year results, reporting a normalised EBITDA of $99.6 million, a 3.7% increase from the prior year.
- Normalised profit after tax rose to $31.5 million, reflecting an 8.3% increase from the prior year.
- EVT’s property portfolio is valued at approximately $2.3 billion, providing a solid asset base.
- The company’s entertainment division continues to perform strongly.
- Looking forward, there is excitement about the growth outlook in the company’s entertainment segment, driven by a strong line-up of blockbuster films for FY2026.
Naos Asset Management
30 Sept 2024
$10.78
Summary
- EVT is a core investment in the NAC portfolio for 8 years.
- Two main divisions: accommodation/hotels and Event Cinemas.
- Accommodation division includes brands like Rydges and QT Hotels.
- Profitability in the hotel segment tied to property ownership, leasing, or management contracts.
- Event Cinemas ranks as one of the largest cinema chains in Australia.
- Recent share price pressure primarily from cinema division performance.
- Revenue affected by COVID shutdowns and Hollywood writers’ strike.
- Current share price values EVT below its net tangible asset backing.
- Expectations for earnings re-rating due to improving outlook for blockbuster films.
- Potential for management to explore strategies for unrealized value.
- Opportunities for near-term value realization through partnerships or asset divestment.
Oracle Advisory Group
31 Mar 2024
$12.12
Summary
- EVT’s enterprise value is currently lower than the value of its property portfolio, which had a 20% valuation uplift in the FY23 result.
- Oracle Advisory Group believes investors are getting the operating businesses, including Event Cinemas, Cinestar, Thredbo, and the Rydge’s hotel chain, for free.
- Value can be realised through the sale or spin-off of operating businesses.
- Event Cinemas, being Australia’s largest chain, could potentially yield a sale price of at least $700m, similar to the bid received by competing chain Hoyts.
- This sale would create significant value for shareholders.
- There is also potential to further develop properties and sell them above current valuations, enhancing shareholder value.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in EVT Ltd (ASX:EVT)?
Fund managers including Naos Asset Management, Oracle Advisory Group, Cooper Investors, Perpetual Asset Management, Wilson Asset Management, SG Hiscock & Company and Perennial Partners have invested in EVT Ltd (ASX:EVT).
Why do fund managers invest in EVT Ltd?
Fund managers invest in EVT Ltd due to its solid asset base, primarily its significant property portfolio worth over $2 billion, providing downside protection and value. They see recovery potential in the cinema industry with an improved film slate and increasing visitor spending. EVT's diverse operations across entertainment and hospitality, combined with ongoing capital management initiatives and insider ownership, enhance its growth prospects. Moreover, successful divestment of non-core assets is expected to unlock further value, making it attractive for investment.
What happened to EVT Ltd (ASX:EVT)?
Fund managers have invested in EVT Ltd due to its impressive Q1 trading performance, with EBITDA rising 21% year-over-year. The company's diverse operating divisions, especially the Hotels and Entertainment Group, reported significant growth, supported by strong market conditions in key areas like Thredbo and German cinema. EVT's robust balance sheet and ongoing asset divestments in Sydney's CBD enhance its financial flexibility and growth prospects, positioning it well for continued earnings growth.
What is the short interest in EVT Ltd (ASX:EVT)?
The short interest in EVT Ltd (ASX:EVT) is 0.91% which makes it the 217th most shorted stock on the ASX. Of the 162.5M shares that EVT Ltd has on issue, 1.5M have been sold short.
What does EVT Ltd (ASX:EVT) do?
EVT Ltd. operates as a holding company, which engages in the provision of entertainment, hospitality, and tourism services. It operates through the following segments: Entertainment, Entertainment Germany, Hotels and Resorts, Thredbo Alpine Resort, and Property and Other Information. The Entertainment segment includes cinema exhibition operations in Australia and New Zealand, technology equipment supplies and servicing, and the State Theatre. The Entertainment Germany segment refers to the cinema exhibition operations in Germany. The Hotels and Resorts segment is involved in ownership, operation and management of hotels in Australia and New Zealand. The Thredbo Alpine Resort segment pertains to all the operations of the resort, including property development activities. The Property and Other Investments segment is associated with property rental, investment properties and investments designated as at FVOCI. The company was founded in 1910, and is headquartered in Sydney, Australia.