Ireland's Hostelworld H1 net revenue rises, reiterates FY guidance
Ireland's Hostelworld H1 net revenue rises, reiterates FY guidance
Overview
Ireland-based online travel agent's H1 net revenue rose 12% yr/yr, driven by Elevate tool
Adjusted EPS for H1 fell 2% yr/yr to 3.95 euro cents
Company completed £5 mln share buyback and approved interim dividend
Outlook
Hostelworld reiterates full-year guidance for low-double-digit revenue growth
Company outlook assumes easing disruption from Middle East conflict and stabilizing trading conditions
Company expects growing contribution from growth initiatives in second half
Result Drivers
ELEVATE TOOL - Higher effective commission rate from Elevate marketplace tool drove revenue growth
MARKETING EFFICIENCY - Improved marketing efficiency reduced direct marketing costs as a percentage of revenue, supporting margin growth
SOCIAL MEMBER BASE - Growth in social members led to higher transaction frequency and margin, becoming the main driver of transactions and revenue
Company press release: ID:nRSc3421Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Income |
| EUR 500,000 |
|
H1 Operating Profit |
| EUR 1.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Hostelworld Group PLC is GBp200.00, about 86.9% above its July 28 closing price of GBp107.00
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
July 28 - Travelzoo Q2 revenue misses estimates as international conflicts impacted segments
July 29 - Spanish travel tech firm HBX posts 12% higher transaction value for Q3
July 28 - Hilton Q2 adjusted EPS meets expectations on higher occupancy
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)