REG - Hostelworld Grp PLC - Trading Statement

HostelworldAnnouncement

Thu 07:00

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RNS Number : 4478Q  Hostelworld Group PLC  10 July 2025

LEI:213800OC94PF2D675H41

Hostelworld Group plc ("Hostelworld" or the "Group")

Trading Update

FY 2025 expectations in line with guidance communicated at April Capital
Markets Day ("CMD")

Hostelworld provides an update on trading up to 30 June 2025 ("H1").

Key highlights:

·    Net revenue(1) of €46.7m (+0% YoY), with net bookings of 3.7m (+0%
YoY) and net average booking value ("ABV") of €13.40 (-1% YoY). Asia
continues to grow at record levels

·    June booking volume and ABV growth across all key regions, with
strong demand for intra-European travel stimulated by modest bed price
deflation

·    Direct marketing as a percentage of revenue(2) totalled 51% (H1 '24:
45%)

·    H1 '25 adjusted EBITDA of €7.4m, plus deferred revenue of €3.1m
(H1 '24: adjusted EBITDA of €9.6m plus deferred revenue of €3.6m)

·    Closing cash position of €11.0m and a net cash position of €6.1m

·    £5m share buy-back programme announced on 19 June, £0.7m shares
purchased since launch

·    Reinstatement of a progressive dividend policy of 20% - 40% of
adjusted profit after tax, with an interim payment expected in H2 2025

 

Looking ahead, the Group reiterates a FY 2025 adjusted EBITDA in line with
market consensus(3).

 

Gary Morrison, Group Chief Executive Officer, commented:

"Trading over the last six months has been in line with expectations as
outlined at our Capital Markets Day in April. Although trading in the first
half showed mixed results across regions and channels, we are encouraged by
the positive trends observed in June. This included growth in both booking
volumes and average booking value (ABV), alongside an improvement in marketing
as a percentage of net revenue

While European bed prices have seen some deflation, this is helping to
stimulate demand. Despite a continuation of the trend for low-cost
destinations in the first half, we are seeing an improving geographic mix,
supported by a pickup in European demand. Marketing as a percentage of revenue
increased year-on-year, primarily driven by cost inflation in the first few
months (which has since moderated) and the growth of paid channels as a
proportion of total web channels.

Our strategic initiatives are progressing well. Bookings via mobile Apps grew
by 11% year over year. The rollout of Elevate, our new marketplace
monetisation tool, is delivering encouraging early results with base
commissions rising to 15.8% in H1 '25, up from 15.2% in H1 '24.

Our global marketplace for Trip Plans is also gaining traction. This
pre-booking feature on our social network has helped to increase the
proportion of bookings from Social Members to 85%, a rise from 80% in the
first half of 2024. The other growth initiatives outlined at our Capital
Markets Day are progressing as planned. We are encouraged by this early
progress and are excited about the potential of our broader strategic
programme. Most of these initiatives are scheduled to launch in late 2025 and
early 2026.

 

As part of our broader growth strategy, the Group continues to evaluate
acquisition opportunities. Reflecting our balanced approach to capital
allocation, we announced a £5 million share buyback programme on 19 June,
alongside the reinstatement of a progressive dividend policy with an interim
dividend expected to be paid in the second half of FY 2025.

 

I am pleased by the progress we are making with our strategic initiatives,
which we believe will materially support our growth from 2026 and beyond"

 

The Group will report its half year results for the six months ended 30 June
2025 on 30 July 2025.

 

1.         Net revenue is gross revenue less cancellations and
includes impact of deferred revenue and other items.

2.         Gross revenue less cancellations.

3.         Company compiled market consensus FY 2025 adjusted EBITDA
is €19.9M as of 10 July 2025.

 

For further information please contact:

Hostelworld Group plc
 
       Corporate@hostelworld.com (mailto:Corporate@hostelworld.com)

 

Gary Morrison, Chief Executive Officer

Caroline Sherry, Chief Financial Officer

David Brady, Head of Commercial Finance

 
 

Sodali (Financial PR
adviser)
hostelworld@sodali.com (mailto: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 270 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 'Taking 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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