Citi downgrades earnings for Australia's EVT after weak FY23, trims PT

EVT

22/10/2023 21:53

** Analysts at Citi see earnings downgrade continuing for
Australia's leisure and entertainment firm EVT Ltd  EVT.AX  on
the back of slowing leisure demand, potential industrial action
impacting entertainment unit, among others 
    ** Brokerage slashes price target by 11% to A$11.60;
maintains 'neutral' rating 
    ** Event’s AGM update revealed earnings have fallen short of
expectations again following disappointing FY23 result -
analysts at Citi
    ** EVT says FY23 profit attributable of A$106.5 mln ($67.19
mln) vs A$53.3 mln in FY22
    ** Citi lowers FY24 to FY26 net profit after tax (NPAT) by
14% to 12%, due to weaker than expected earnings in Q1 2024
    ** Anticipates deceleration in growth for rest of H1 2024
for box office data in Australia, New Zealand and Germany
    ** Citi remains cautious on EVT's H1 2024 hotel earnings 
    ** FY24 set to be disappointing after poor weather
conditions during winter hitting Thredbo's earnings - Citi
    ** Thredbo, EVT's village & ski resort in New South Wales,
Australia 
    ** EVT down ~15.6% YTD, as of last close


($1 = 1.5850 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru; Editing by Josie Kao)
 ((Roshan.Thomas@thomsonreuters.com;))