A "fewer, better" strategy should allow the company behind Australia's biggest cinema chain to earn just as much from movies as it did before COVID-19 despite taking in lower numbers of punters.
EVT Limited, which owns Event Cinemas, Moonlight Cinema, BCC Cinemas and Germany's CineStar, has closed 30 locations over the past seven years, saving the company $80 million, while investing in upscale strategies like Gold Class, Vmax and Sofa cinema concepts at other locations.
"The premiumisation strategies underpin the record spend metrics the group has been able to realise," the company said on Friday.
"EVT recognises this division as a significant cash generator when conditions normalise."
The global film industry hasn't had a normal marketplace for a meaningful period in over five years, with the COVID-19 closures followed by the recent Hollywood strikes materially disrupting film supply, EVT chairman Alan Rydge told shareholders at the company's annual general meeting.
"However, we see a pathway for further film line-up recovery," Mr Rydge said.
In the first quarter of 2025/26, the chain's Australian cinemas traded below the same time last year, as the films released couldn't offset the prior year's exceptional performance of Deadpool & Wolverine, chief executive Jane Hastings said.
But the November and December line-up looks promising, with the release of Wicked: For Good, Zootopia 2 and the next instalment in the Avatar series, Fire and Ash, she said.
"Generally, the supply of blockbuster titles is improving and demand for good quality films is strong," Ms Hastings said.
Beyond cinemas, EVT also owns hotels including the Rydges and QT brands; the Thredbo ski resort in NSW's Snowy Mountains; and a property portfolio.
Ms Hastings said that EVT was in the process of selling off its purpose-built cinema/entertainment in the heart of Sydney's CBD at 525 George Street.
The site has been approved for a 43-storey mixed-use tower that includes residential, hotel, cinema and retail space.
"We indicated that this process would take around 12 months, and this is still the expected timeline, subject to achieving the right outcome," Ms Hastings said.
EVT is also reviewing its options for its other holdings on George and Market streets in Sydney's CBD.
