Event Hospitality and Entertainment : 2019 Half Year Report and Accounts

EVENT Hospitality & Entertainment Limited

Financial Results

For the half year ended 31 December 2018

This half year report is presented under listing rule 4.2A and should be read in conjunction with the EVENT Hospitality & Entertainment Limited 2018 Annual Report.

ASX code: Released: Telephone: Contact:

EVT

21 February 2019 [phone]

Jane Hastings (Chief Executive Officer) David Stone (Company Secretary)

EVENT HOSPITALITY & ENTERTAINMENT LIMITED | ACN 000 005 103

478 GEORGE STREET SYDNEY NSW 2000 | GPO BOX 1609 SYDNEY NSW 2001 | [phone]

CINEMAS | EVENT | BCC | GU FILM HOUSE | CINESTAR | MOONLIGHT

HOTELS & RESORTS | RYDGES | QT | ATURA | THREDBO

APPENDIX 4D

HALF YEARLY REPORT

RESULTS FOR ANNOUNCEMENT TO THE MARKET

for the half year ended 31 December 2018

(previous corresponding period: half year ended 31 December 2017)

Key Information

2018 A$'000 2017 A$'000 Revenue and other income from continuing operations Revenue and other income from discontinued operations Up Down 6.0% to 525,398 495,507 10.6% to 147,892 165,400 Total revenues and other income Up 1.9% to 673,290 660,907 Profit from continuing operations before individually significant items, net finance costs and income tax expense Up 1.9% to Net finance costs from continuing operations 87,935 (4,533) 86,302 (2,821) Profit from continuing operations before individually significant items and income tax expense Down 0.1% to 83,402 83,481 Individually significant items from continuing operations 5,367 1,246 Profit from continuing operations before income tax expense Up 4.8% to 88,769 84,727 Discontinued operations profit before income tax 4,040 13,103 Profit before income tax expense Down 5.1% to 92,809 97,830 Income tax expense from continuing operations (23,738) (26,455) Income tax expense from discontinued operations (1,547) (4,441) Profit for the period attributable to members of the parententity Up 0.9% to 67,524 66,934
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend - 2018 (paid 20 September 2018)	31 ¢	31 ¢
Interim dividend - Current year - Previous corresponding period	21 ¢ 21 ¢	21 ¢ 21 ¢
Record date for determining entitlements to the dividend 7 March 2019 Date of interim dividend payment 21 March 2019

Explanation of Revenue

See attached annexure and the Directors' Report.

Explanation of Profit from Ordinary Activities after Tax See attached annexure and the Directors' Report.

Explanation of Net Profit

See attached interim consolidated financial report.

Explanation of Dividends

See attached interim consolidated financial report.

Net Tangible Asset Backing

December 2018

December 2017

Net tangible asset backing per share

$6.36

$6.00

Controlled Entities Acquired or Disposed of

See attached interim consolidated financial report.

Additional Dividend Information

See attached interim consolidated financial report.

Dividend Re-Investment Plans

The Dividend Re-Investment Plan ("DRP") was suspended in August 2010 and will not operate for the 2019 interim dividend.

Associates and Joint Venture Entities

See attached interim consolidated financial report.

Compliance Statement

The information provided in this report has been prepared in accordance with Australian Accounting Standards, the Corporations Act 2001 and other standards acceptable to the ASX.

The attached interim consolidated financial report for EVENT Hospitality & Entertainment Limited has been subject to review by its auditors, KPMG. A copy of the independent auditor's review report to the members of EVENT Hospitality & Entertainment Limited is attached.

ANNEXURE TO THE APPENDIX 4D

REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2018

CONSOLIDATED GROUP RESULT

31 December 2018

31 December 2017

31 December 2016

Normalised	Normalised	Reconciliation to	Normalised	Reconciliation to
result*	result*	reported net profit	result*	reported net profit
$'000	$'000	$'000	$'000	$'000
Entertainment
Australia	26,409	24,117	24,117	33,008	33,008
New Zealand	4,028	3,367	3,367	4,361	4,361
Hospitality and Leisure
Hotels and Resorts	35,394	36,449	36,449	24,546	24,546
Thredbo Alpine Resort	25,813	24,196	24,196	20,469	20,469
Property and Other Investments	7,071	6,856	6,856	5,475	5,475
Unallocated revenues and expenses	(10,780)	(8,683)	(8,683)	(12,636)	(12,636)
87,935	86,302	86,302	75,223	75,223
Finance revenue	249	248	248	233	233
Finance costs	(4,782)	(3,069)	(3,069)	(4,279)	(4,279)
83,402	83,481	83,481	71,177	71,177
Income tax expense	(23,627)	(26,081)	(26,081)	(21,663)	(21,663)
Profit from continuing operations	59,775	57,400	57,400	49,514	49,514
Individually significant items - net of tax	872	(387)
Discontinued operations - net of tax	8,662	10,255
Reported net profit	66,934	59,382

Reconciliation to reported net profit $'000

35,394 25,813 7,071 (10,780)

87,935 249 (4,782)

83,402

(23,627)

59,775 5,256 2,493 67,524

* Normalised result is profit for the period from continuing operations before individually significant items (as outlined in Note 4 to the interim consolidated financial report). As outlined in Note 2 to the interim consolidated financial report, this measure is used by the Group's Chief Executive Officer to allocate resources and in assessing the relative performance of the Group's operations. The normalised result is an unaudited non-IFRS measure.

3 | EVENT Hospitality & Entertainment Limited - Interim consolidated financial report for the half year ended 31 December 2018

Reported net profit after discontinued operations was $67,524,000 (2017: $66,934,000) and $590,000 or 0.9% above the prior comparable half year. The normalised result before interest and income tax expense was $87,935,000 (2017: $86,302,000) and $1,633,000 or 1.9% above the prior comparable half year, and the normalised result after tax was $59,775,000 (2017: $57,400,000) and $2,375,000 or 4.1% above the prior comparable half year.

Discontinued operation - CineStar Germany

On 22 October 2018, the sale of the German Cinema operation to Vue International Bidco plc, subject to Federal Cartel Office (FCO) approval, was announced. As a result, the Entertainment Germany result has been reported as a discontinued operation. The sale includes an upfront payment of €130 million (A$206 million) and variable consideration of up to €81.8 million (A$130 million) depending on German market admissions for the 2019 calendar year and up to a further €10 million (A$16 million) subject to the satisfaction of other agreed conditions. The variable consideration is based on German market admissions in the 2019 calendar year reaching a minimum of 105 million with the full consideration paid at 115 million admissions. The FCO review is in progress. This operation was not a discontinued operation at the end of the prior financial period (31 December 2017) and the comparative Income Statement for the half year to 31 December 2017 has been re-presented to show the discontinued operation separately from continuing operations.

Individually significant items - continuing operations

31 Dec 201831 Dec 2017 31 Dec 2016 $'000$'000 $'000

Reversal of impairment charges booked in previous years	9,144
		―	―
Hotel and cinema pre-opening expenses	(2,608)	(334)	(2,387)
Sale of apartments at QT Melbourne	48	1,984
			―
Other individually significant items (net)	(1,169)	1,532	(150)
Individually significant items before income tax	5,367	1,246	(553)
Income tax (expense)/benefit	(111)	(374)	166
Individually significant items after income tax	5,256	872	(387)
REVIEW OF OPERATIONS
Entertainment
Entertainment Australia

The normalised profit before interest and income tax expense was $26,409,000, an increase of $2,292,000 or 9.5% above the prior comparable half year.

4 | EVENT Hospitality & Entertainment Limited - Interim consolidated financial report for the half year ended 31 December 2018