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EVENT HOSPITALITY & ENTERTAINMENT EST 1910 ABN 51 000 005 103 ASX ANNOUNCEMENT PANDEMIC DRIVES REVENUE DOWN $ 466 MILLION , STRONG RESPONSE MITIGATES EBITDA LOSS TO $ 31 MILLION THURSDAY 18 FEBRUARY 2021 Event Hospitality & Entertainment Limited ( " EVENT " ) today announced the half year result which was materially impacted by the COVID - 19 pandemic , with EVENT operating in some of the hardest hit industries globally . Whilst EVENT's markets performed relatively better than key global markets , the pandemic impact resulted in revenue down 58 % to $ 294m . A swift and strong response mitigated the impact to a normalised EBITDA loss of $ 31 million , and a statutory net loss after tax of $ 60.2 million . Despite government mandated closures and operating restrictions , the result included a positive EBITDA contribution from Hotels , Thredbo and Property , whilst the cash burn in the Entertainment division was significantly reduced when compared with the COVID - impacted period in FY20 . The Entertainment division was the most impacted due to COVID - 19 government mandated closures in key global markets including USA , UK , and the markets in which EVENT operates . The direct impact was a material reduction in the number of cinemas open globally . As blockbuster films are typically released on a simultaneous worldwide " day and date " basis , the material closures resulted in major studios delaying blockbuster films dated for this period to May 2021 and beyond . As a result , whilst there was a strong customer desire to return to cinemas , only one film grossed more than $ 15 million at the Australian box office in the half year , compared to 10 films in the same period prior year . In announcing the result , EVENT CEO Jane Hastings said : " The result was defined by the impact of COVID - 19 government mandated restrictions materially impacting our ability to generate revenue . In response , within every division , we have transformed every aspect of our business to be able to respond to the pandemic constraints . We secured more than our fair share of scarce revenue opportunities whilst transforming and mitigating cash - burn . Swift and active cost management resulted in more than $ 155 million in savings from March to December 2020 , excluding government subsidies , and excluding the benefit of most of the rent relief negotiated with landlords which will be recognised once agreements have been signed . " " We have already seen the pent - up demand for our businesses , which was reflected in the outstanding result in Thredbo despite capacity restrictions of up to 50 % , strong leisure demand in hotels , and cinemas achieving an EBITDA positive result in January despite the Australian nationwide box office being down 50 % . " Ms Hastings also commented on the Group's future growth initiatives : " Despite the intense focus on re- engineering the business to reduce cash - burn in response to COVID - 19 , we have also made good progress on growth initiatives . The Hotels division is on track to exceed our highest ever year of hotel network expansion and we launched the ' Independent Hotel Collection by Event ' as a platform for continued growth . Our ' Cinema of the Future ' concepts resulted in an increase in spend per customer and a material increase in customer satisfaction scores , at a lower cost to serve . We have also recently launched the ' Cinebuzz on Demand ' trial to better monetise our entertainment database of 2.5 million movie fans when they are stuck at home . We delivered the first phase of our Thredbo growth plan underpinning our strong winter performance and we have achieved a January record for mountain biking . " Ms Hastings continued : " We also achieved key project milestones for our major developments , including the approval of the Development Application for the podium component of the 458-472 George Street development , and the approval of the Stage One Development Application and completion of the design competition process for the 525 George Street development , and we are confident in the value we are creating from our core property . Further to this , we have identified certain non - core properties for divestment with a target to realise $ 250 million proceeds before tax within two years . " Ms Hastings also commented on the Group's liquidity and cash flow position : " Last year we secured an increase of our debt facilities to $ 750 million , the majority of which matures in 2023. Our current net debt is approximately $ 450 million , providing significant headroom . We are confident , based on what we know today , that we are in a good position to face the challenges of COVID - 19 on our industries . " 1