As Australians continue to swelter under high inflation, Australian Venue Co has reported a significant bump in earnings largely by maintaining its strategy of family-friendly and value offerings.
In FY26 the country’s second-largest pubs group further expanded its ever-growing portfolio in ANZ, acquiring another dozen to now count 255 venues.
Including the new entities the company says its EBITDA (earnings before interest, tax, depreciation and amortisation) increased 27 per cent, coming to $472 million, with revenue across the augmented group up nearly 20 per cent, to $1.63 billion.
Not counting the new venues, revenue is up seven per cent compared to the same period last year.
Contributing a little to this was the recent 23rd FIFA World Cup, in June and July, which AVC details produced a roughly three per cent boost in sales.
The group makes a business practice of refreshing its existing pubs and adding more to the collection.
This year alone has seen AVC acquire four Sydney pubs formerly operated by Solotel, reopen Hotel Allen in Townsville and the Sands Tavern in Maroochydore after major renovations, open Good Nature Hotel in Melbourne’s Federation Square, and this month unveil the new accommodation at the Coomera Lodge Hotel.
The positive results come as AVC continues its capex program, CEO Paul Waterson explaining they have a goal to add or refresh around 25 pubs each year, and by reaping the rewards of shifting consumer sentiment on alternate dining options as cost-of-living pressures impact the food sector.
“It’s great to see such a resilient pub market in the face of a tougher consumer environment. We were pleased with the results,” Waterson reported to PubTIC.
Research by IBISWorld found an ongoing squeeze on consumer discretionary income, particularly as home-delivery services and big-box liquor retailers appeal to people counting costs. IBIS suggests this is seeing venues “compete on ambience, service and differentiated offerings”.
Declining alcohol consumption per capita has gradually impacted the revenue and business of licensed venues, and the cumulative reduction has prompted some venues to focus on higher quality offerings in f&b, including upmarket makeovers, menus and new cocktail bars.
Waterson says that after years of lacklustre growth in the wake of COVID their pub offerings have really started to come into their own, as consumers recognise pub value relative to alternatives.
AVC’s deep pockets and long-term strategy are underpinned by its relationship with private equity entities. The group was acquired in 2023 by PAG, with the majority ownership of 90 per cent split in mid-2025 with CVC Capital Partners Asia, valuing AVC at $2.1 billion.
