Near-Term Bumps Ahead for EVT but Midcycle Earnings Potential Is Intact

EVT earnings are generated from cinemas, hotels, the Thredbo ski resort, and a portfolio of property investments. The cinema unit is dependent on discretionary expenditure and popularity of films from studios, both Hollywood and foreign markets. The emergence of home entertainment systems, broadband-enabled streaming services and the shortening of the release window from film to home format pose an earnings risk longer-term. Cinema exhibitors such as EVT are focused on enhancing the moviegoing experience as a point of difference.