Declining cinema demand to weigh on Event Hospitality and Entertainment - Citi

EVT

13/05/2022 07:22

** Brokerage Citi does not see Australian hospitality and
entertainment provider's  EVT.AX  revenue recovering to
pre-pandemic levels by Q4 CY22 as forecast by theatre chain
Australian Multiplex Cinemas 
    ** Citi says revenue per screen at EVT will not return to
pre-pandemic levels before FY32, as brokerage's consumer survey
revealed a declining trend in the popularity of cinemas with
people now preferring road trips instead  
    ** Citi, however, sees EVT as "materially undervalued",
noting its A$2 bln ($1.38 bln) property portfolio, with
investors paying an undemanding FY23 EV/EBITDA for the operating
business
    ** Stock up 2.2% so far this week, after diving 2.1% last
week
    ** Shares down 7.3% this year, as of last close, vs a 5.1%
fall in the benchmark S&P/ASX 200 index  .AXJO  



($1 = 1.4522 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))