EVT (ASX:EVT) has released its trading update for the financial year ending June 30, projecting normalised EBITDA growth despite a volatile global landscape.
While the ongoing Middle East crisis has triggered international cancellations, the impact has been largely mitigated by a surge in domestic demand and displaced international travel.
However, management noted a recent softening in forward bookings and a shift towards shorter lead times, particularly following a weaker Easter period in regional "drive" destinations like the Snowy Mountains.
The group’s hotels division, which contributes over 60% of normalised EBITDA, remains a primary engine of growth.
Performance is being bolstered by the acquisition of QT Auckland and the launch of EVT Connect Hospitality, alongside room upgrades at QT Queenstown.
These gains are balanced against approximately $5 million in redevelopment costs and external disruptions, such as light rail construction impacting QT Canberra.
In the entertainment sector, EVT expects reasonable growth, supported by a strong performance from CineStar Germany.
While the Q3 film slate was robust, the company faces a tougher Q4 comparison and site-specific challenges, including water damage at the Manukau cinema and refurbishments in Bondi.
Additionally, the upcoming FIFA World Cup is anticipated to temporarily dampen cinema attendance.
Meanwhile, the Thredbo alpine resort is tracking towards a normalised EBITDA of $22 million to $23 million, though final results remain sensitive to late-season weather conditions and fuel price impacts on alpine tourism.