LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or
the "Group")
Trading Update
Reaffirming FY adjusted EBITDA guidance
in line with expectations.
Net cash positive balance
sheet
Hostelworld is pleased to provide an update on
trading up to 30 September 2024 ("YTD").
Key
highlights:
·
Net bookings of 5.4m (+7% YoY)
driven by record performances in Asia and Central
America
·
Net average booking value of €13.54
(-9% YoY) driven by a greater proportion of Asian
destination bookings and a slight increase in the proportion of
solo customers, consistent with the trends outlined at
interims
·
Net revenue1
of €72.3m (-2% YoY) reflecting the drivers above
·
Direct marketing as a percentage of
revenue2 totalled 46%, down 5% from 51% in
YTD '23
·
Proportion of bookings from Social Members increased to 80%
(67% in YTD '23)
·
Operating costs3 of €18.7m, (-3% YoY), 26% of net
revenue (0% YoY)
· YTD
adjusted EBITDA of €17.8m, (+28% YoY) with adjusted EBITDA margin
25% (19% in YTD '23)
·
Closing cash position of €7.8m and a
net cash position of €0.9m, with all bank debt repaid in
full
The Group reiterates a FY 2024 adjusted EBITDA
guidance in line with market consensus4. We are actively
reviewing our capital allocation policy and will provide an update
in conjunction with our full-year results.
1. Net Revenue
is gross revenue less cancellations, deferred revenue, rebates and
accounting adjustments
2. Generated
revenue is gross revenue less cancellations and excludes impact of
deferred revenue
3. Operating
costs exclude paid marketing costs, credit card fees, exceptional
costs and share option charges
4. Company
compiled market consensus FY 2024 adjusted EBITDA is €21.6M as of
15 October 2024
Gary
Morrison, Group Chief Executive Officer,
commented:
"I am pleased
with our performance year to date, which has been driven by strong
consumer demand from Europe, the UK and North America to low-cost
destinations in Asia and Central America. The strong cash
generative nature of this business has seen us return the balance
sheet to a net cash position in quarter three of 2024, as
previously guided.
In addition
to our strong financial performance, I am equally pleased with the
continued impressive performance of our Social Network, as a result
of which, marketing expense as a proportion of revenue has improved
significantly YoY. This has resulted in a net margin growth of 10%
and combined with our continued focus on cost, has delivered a 28%
increase in adjusted EBITDA YoY.
Looking
ahead, I remain very confident in our business model and our
continued success in building a platform for long-term profitable
growth."
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
Sodali &
Co
hostelworld@sodali.com
Eavan Gannon / Oliver
Banks
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.