Shorter theatrical window could hit Event Hospitality's cinema revenue- Citi

EVT

17/08/2021 09:07

** Citi says shorter theatrical window of 45 days is
headwind for Australia's Event Hospitality and Entertainment
 EVT.AX , slowing its cinema revenue recovery until FY25
    ** U.S. entertainment studios like Walt Disney Co  DIS.N 
and AT&T Inc's  T.N  Warner Bros to show all of their 2022
movies for 45 days, down from the historical 90-days prior to
home release
    ** Brokerage sees this "as a positive for exhibitors such as
Event" since it signals they remain part of film ecosystem,
something not seen during COVID-19 period
    ** However, a shorter theatrical window means slow recovery
in EVT's cinema business
    ** "While cinema and hotel performance is typically strong
post lockdown from pent up-demand, the impact of structural
issues may take some time to be evident" - Citi
    ** Citi also sees upside from EVT's property sales being
offset by COVID-19 related disruptions to cinema and hotel
sector 
    ** Brokerage retains PT of A$12.65 and "neutral" rating
    ** EVT closed 0.95% lower at A$12.5 on Tuesday
    


 (Reporting by Dhriti Garg in Bengaluru)
 ((Dhriti.Garg@thomsonreuters.com))