LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group")
Trading Update
Strong bookings growth, FY Adjusted EBITDA guidance in line with expectations
Hostelworld is pleased to provide an update on trading up to 30 June 2024 ("H1").
Key highlights:
· Net bookings of 3.7m (+9% YoY) driven by record performances in
· Net average booking value of
· Net revenue of
· Direct marketing as a percentage of revenue1 totalled 45%, down 6% from 51% in H1 '23, driving a net margin growth of +23% YoY
· Proportion of bookings from Social Members increased to 80% (74% in Q4 '23)
· Operating costs2 of
· H1 '24 adjusted EBITDA
· Closing cash position of
Looking ahead, the Group is well positioned to capitalise on market demand and reiterates a FY 2024 adjusted EBITDA in line with market consensus3.
Gary Morrison, Group Chief Executive Officer, commented:
"I am very pleased with our performance for the year to date, driven by strong consumer demand for low cost destinations in
I am also pleased that marketing expense as a proportion of revenue has improved significantly YoY resulting in a 23% increase in net margin YoY driven primarily by our Social Strategy, despite the significant growth in lower cost destinations driving lower ABV's. This net margin growth coupled with our continuing focus on cost has delivered an 88% increase in adjusted EBITDA YoY, which has enabled us to fully repay our residual debt facility with AIB, well ahead of schedule.
Looking ahead, I remain very confident in our growth strategy and that we are well positioned, well financed and firmly on track to deliver against our objectives outlined in our Capital Markets Day presentation in November 2022."
The Group will report its half year results for the six months ended 30 June 2024 on 08 August 2024.
MAR information
This announcement contains inside information for the purposes of Article 7 of the
1. Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue.
2. Operating costs exclude paid marketing costs, credit card fees, exceptional costs and share option charges.
3. Company compiled market consensus FY 2024 adjusted EBITDA is
For further information please contact:
Hostelworld Group plc Corporate@hostelworld.com
Gary Morrison, Chief Executive Officer
Caroline Sherry, Chief Financial Officer
David Brady, Head of Commercial Finance
Powerscourt hostelworld@powerscourt-group.com
Eavan Gannon / Nick Dibden Tel: +44 (0) 20 7250 1446
About Hostelworld Group
Hostelworld Group PLC is a ground-breaking social network powered Online Travel Agent ("OTA") focused on the hostelling category, with a clear mission to help travellers find people to hang out with. Our mission statement is founded on the insight that most travellers go hostelling to meet other people, which we facilitate through a series of social features on our platform that connect our travellers in hostels and cities based on their booking data. The strategy has been extraordinarily successful, generating significant word of mouth recommendations from our customers and strong endorsements from our hostel partners.
Founded in 1999 and headquartered in Ireland, Hostelworld is a well-known trusted brand with almost 230 employees, hostel partners in over 180 countries, and a long-standing commitment to building a better world. To that end, our focus over the last few years has been on improving the sustainability of the hostelling industry. In particular, over the last two years we have commissioned independent research to validate the category's sustainability credentials, and recently introduced a hostel specific sustainability framework which encourages our hostel partners to move to even more sustainable operations and also provides the data points for our customers to make more informed decisions about where they stay. In addition, our customers are now able to offset their trip's carbon emissions should they wish to do so, and we have maintained our 'Funding Climate Action' label awarded by South Pole.
Disclaimer
This announcement contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of Hostelworld. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Hostelworld's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of this announcement. Except as required by law, Hostelworld undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in this announcement to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made.
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