Event Hospitality And Entertainment Ltd (ASX: EVT) shares fell nearly 6% today after the company released a mixed set of results for FY19.
Event Hospitality & Entertainment (Event) is a diversified leisure and entertainment company that operates cinemas, hotels and resorts in Australia, Fiji, New Zealand and Germany.
What Was In The Result?
With the company currently in the process of selling its German cinemas business the results could become confusing when trying to measure against previous periods. As a way of rectifying this issue the company has reported key performance measures from the point of view of ‘continuing operations’ along with the standard statutory reporting requirements.
Revenue from continuing operations was down 2% to $998 million with profit from continuing operations falling a more substantial 6.7% to $104.3 million.
The Australian business segment had a sluggish performance in FY19 with the company blaming a lack of new blockbuster movies for the decline in performance. Normalised earnings before interest and tax (EBIT) was 12% lower than the previous year at $60.2 million.
The Hotels business which contains the well known brands Rydges, QT and Artura posted a record performance with EBIT of $69.5 million.
Perhaps the most pleasing performer within the company’s portfolio of assets was the Thredbo Alpine Resort which delivered EBIT growth of 14.6% to $25.6 million for the year.
Event has declared a final dividend of $0.31 per share bringing the full year dividend to $0.52. Based on the company’s closing price this places Event shares on a trailing dividend yield of 4.5%.
Are Event Shares Now Cheap?
Event is a reasonable company that I think will continue to do OK without shooting the lights out. Despite shares becoming significantly cheaper today I think there are many better opportunities listed on the ASX.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
