REG - Hostelworld Grp PLC - Trading Statement

HostelworldAnnouncement

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RNS Number : 6389C  Hostelworld Group PLC  09 October 2025

LEI:213800OC94PF2D675H41

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

Trading Update

Improved Q3 Trading and Solid YTD Performance

Reaffirming FY adjusted EBITDA guidance in line with expectations.

Hostelworld is pleased to provide an update on trading for the nine months up
to 30 September 2025 ("YTD").

Key highlights:

Q3 performance demonstrates positive momentum:

·      Q3 Generated Revenue¹ grew 5% year-on-year (YoY), driven by a 2%
increase in bookings and a 3% rise in Average Booking Value (ABV).

·      Performance was boosted by an improved effective commission rate,
which increased to 16.3% from 15.2% in Q3 2024, primarily due to the
successful adoption of our 'Elevate' marketplace tool.

·      Direct marketing costs as a percentage of revenue² totalled 47%
in Q3, down from 49% in Q3 2024 and 51% in the first half of 2025.

Year-to-date summary and outlook:

·      YTD Net Revenue² was €72.6m. This is broadly flat YoY,
reflecting 1% growth in net bookings offset by lower deferred revenue benefits
compared to the prior year.

·      YTD Adjusted EBITDA for the period was €15.4m with a 21% margin
(YTD 2024: €17.8m and 25%), reflecting planned investments in growth
initiatives and the timing of deferred revenue.

·      The Group maintains a robust balance sheet with a closing cash
position of €10.9m and net cash of €6.6m. Share buy-back programme
progressing, with £2.2m shares purchased YTD. Progressive dividend reinstated
and interim dividend of 0.82€ cent per share paid on 19(th) September 2025.

·      We reiterate our full-year 2025 adjusted EBITDA guidance, which
remains in line with the current market consensus³ of €19.8m.

1.         Generated revenue is gross revenue less cancellations and
excludes impact of deferred revenue

2.         Net Revenue is gross revenue less cancellations, deferred
revenue, rebates and accounting adjustments

3.         Company compiled market consensus FY 2025 adjusted EBITDA
is €19.8M as of 09 October 2025.

Gary Morrison, Group Chief Executive Officer, commented:

"Our third-quarter results show that the strategic plan we announced at our
Capital Markets Day is delivering positive results.

Revenue grew by 5% YoY. This was supported by a rise in our commission rate to
16.3%, up from 15.2% this time last year, mainly due to our 'Elevate'
programme. This increased commission rate boosted our Average Booking Value
(ABV) by 3% YoY, which successfully offset the impact of a weaker US dollar
and the continued popularity of low-cost destinations. At the same time, our
marketing efficiency improved, with costs falling from 49% of revenue in Q3'24
to 47% in Q3'25.

Looking ahead, we are on schedule to launch our social network monetisation
and the provision of budget accommodation initiatives in the fourth quarter.
The timely delivery of these foundational initiatives is a key step towards
delivering our growth strategy, as set out at our Capital Markets Day."

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 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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