Hostelworld Group PLC Trading update (1241C)
October 15 2020 - 2:00AM
UK Regulatory
TIDMHSW
RNS Number : 1241C
Hostelworld Group PLC
15 October 2020
LEI:213800OC94PF2D675H41
Hostelworld Group plc
("Hostelworld" or the "Group" or "we")
Trading update
15 October 2020: Hostelworld, a leading global OTA focused on
the hostel market, provides the following update on current
trading.
As detailed in our interim results on 12 August 2020, we saw a
very modest recovery in domestic bookings in late June, and short
haul bookings into Europe in July and early August as travel
restrictions were eased; resulting in the business tracking
slightly ahead of the Base Case scenario outlined at the time of
the Group's equity placing in June. At that time, we stated that we
expected the pace of recovery to be driven by changes in travel
guidance in individual markets over the coming months, both
positive and negative.
Since the end of August, travel restrictions have tightened
globally and we have seen demand level off, and in recent weeks we
have experienced a marked deterioration in bookings. We have also
seen a greater than expected decline in ABVs driven in part by bed
price deflation and adverse foreign exchange movements.
Looking ahead to the rest of the year, we no longer expect an
improvement in the macro travel environment and therefore expect
any recovery to be muted. Based on this, and our current visibility
of forward-looking bookings, we now expect full year net bookings
to be in the range of 20 - 22% of FY2019 (Base Case: 25% of FY2019
/ Pessimistic Case: slightly below the Base Case) and net revenue
to be in the range of 16 - 18% of FY 2019 (Base Case: 20% of FY2019
/ Pessimistic Case: slightly below the Base Case).
Since the Group's equity placing in June, we have continued to
actively assess our future funding needs and cost base in the light
of continued uncertainty. As at 9 October 2020 the Group's net cash
position stands at EUR22.6 million (as at 30 June 2020:
EUR29.4million) with monthly operating cash burn EUR2.0m through Q3
which is expected to reduce further in Q4.
Finally, as noted in our interim results we have continued to
deploy significant enhancements to strengthen our core platform
during Q3 and will continue this progress into Q4. We expect these
enhancements will result in strengthened marketing capabilities, an
improved user experience and increased inventory competitiveness
when normal travel patterns resume.
For further information please contact:
Hostelworld Group plc
Gary Morrison Chief Executive Tel: +353 (0) 1 498 0700
Officer
Rudolf O'Kane Head of Commercial
Finance
Powerscourt
Lisa Kavanagh / Eavan Gannon Tel: +44 (0) 20 7250 1446
Email: hostelworld@powerscourt-group.com
About Hostelworld Group
Hostelworld Group, the global hostel-focused online booking
platform, inspires passionate travellers to Meet The World, and
come back with life-changing stories to tell. Our customers are not
your average tourists; they crave cultural connection and unique
experiences that we make possible by providing an unbeatable
selection of hostels in unmissable locations - all in the palm of
their hand.
It is the social nature and community feel of hostels and their
environment that enable travellers to embrace journeys of
discovery, adventure and meaning. We have more than 13 million
reviews across more than 17,700 hostels in more than 179 countries,
making our brand the leading online hub for social travel. Our
website operates in 19 different languages and our mobile app in 13
languages.
Disclaimer:
This announcement may contain forward-looking statements with
regard to the financial position and results of Hostelworld's
activities. Any forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially.
Many of these risks and uncertainties relate to factors that are
beyond Hostelworld's ability to control or estimate precisely. The
risks and other factors which may affect financial performance are
detailed in Hostelworld's publicly filed annual reports. Any
forward-looking statements in this announcement are current only as
of the date on which such statements are made. Hostelworld
undertakes no obligation to update any forward-looking statements,
save in respect of any requirement under applicable law or
regulation.
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