LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group")
Trading Update
Largest H1 revenue on record
Hostelworld is pleased to provide an update on trading up to 30 June 2023 ("H1").
Key highlights:
· Largest H1 on record, with Net GMV1 of €339.5m (+57% YoY) and revenue2 of €51.5m (+57% YoY)
· Net bookings of 3.4m (+64% YoY) driven by strong performances in key European, Asian and Oceania markets
· Net Average Booking Value of €15.15 (-4% YoY) driven by a greater proportion of Asian destination bookings, partially offset by continued bed price inflation
· Direct marketing as a percentage of revenue2 totalled 51%, down 9% from 60% in H1 '22
· Interest rate on AIB debt facility reduced from 3.75% to 3.25% over EURIBOR, €2.5m reduction in RCF balance to €5.0m
· H1 '23 adjusted EBITDA €5.1m compared to a loss of €5.2m in H1 '22
· On 30 June 2023 the Group had a closing cash position of €10.7m and a net debt3 position of €16.2m
The Group reiterates earnings guidance of adjusted EBITDA in the range of €16.5 million to €17 million for the full year, absent any deterioration in the macro-economic environment, the reintroduction of Covid restrictions or air travel disruptions.
Gary Morrison, Group Chief Executive Officer, commented:
"I am very proud of our performance for the year to date. In particular, I am delighted that we have delivered record generated revenues and improving EBITDA margins driven by our differentiated Social growth strategy and a continuing focus on operational excellence and cost discipline.
Looking further ahead, I remain very confident that our innovative, asset-light business model is well-positioned, well-financed and firmly on track to deliver against our long-term growth goals outlined in our Capital Markets Day presentation last November."
The Group will report its half year results for the six months ended 30 June 2023 on 10 August 2023.
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 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 the vast majority of travellers go hostelling as a means 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. To date 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, Hostelworld is a well-known trusted brand with 250 employees across 11 countries; hostel partners in 170 countries; and a strong commitment to building a better world in all that we do. In particular, our focus in the last few years has been on improving the sustainability of hostelling industry, through our membership of the Global Sustainable Tourism Council (GSTC); our active involvement in the Global Tourism Plastics Initiative (GTPI); our partnerships with Bureau Veritas to establish emissions benchmarks for the hostelling industry; and our recent partnership with the South Pole to be a climate neutral company in 2021 and 2022.
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.
1 Net GMV is gross transaction value of the booking less cancellations
2 Revenue is gross revenue less cancellations and excludes impact of deferred revenue
3 Net debt is cash less outstanding debt, including term loan, revolving credit facility and warehoused payroll taxes
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