Event (ASX: EVT) has released an update to the market. Was it good viewing for shareholders?
What is Event Hospitality & Entertainment?
It’s a global entertainment business with 54 hotels, 142 cinemas and more than 8,000 employees. Some of its brands include Event Cinemas, State Theatre, Moonlight Cinema, Thredbo, Rydges, QT and Atura.
Today the company announced that it has successfully refinanced its debt. The debt facility has been increased by $205 million to $750 million. That means the company now has available cash and undrawn debt of around $320 million.
The majority of cinemas in Australia and New Zealand are now open. During the restrictions the company stood down many of its global workforce. It successfully applied for jobkeeper in Australia, the New Zealand wage subsidy and the Germany short-time work scheme. It has restructured, renegotiated its supplier contract and commenced landlord negotiations.
The majority of hotels have remained open throughout the COVID-19 shutdown with a number of initiatives implemented to mitigate the impact of COVID-19. The hotels business successfully applied for wage help in Australia and New Zealand. It has been generating revenue from activities like government quarantine and isolation, essential workers and self-isolation guests.
There is going to be a restricted opening for the winter season for Thredbo from 22 June 2020 with a 50% capacity.
Event Chairman Alan Rydge said that the company is now well positioned to navigate through a challenging trading period, “I remain confident that Event’s best days are ahead of us and look forward to a return to normality for our trading divisions.”
The company was unable to provide any guidance because of the uncertainty surrounding COVID-19.
The Event share price is down 2.25% after releasing this update. I’m not sure I could buy shares today because it’s hard to say how long it will take before full trading will resume.
Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.