REG - Hostelworld Grp PLC - Trading Update

HostelworldAnnouncement

11/01/2023 07:00

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RNS Number : 2957M  Hostelworld Group PLC  11 January 2023

LEI:213800OC94PF2D675H41

 

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

Full Year Trading Update for Year ended 31 December 2022

Return of profitable growth in-line with market guidance

 

Hostelworld is pleased to provide an update on trading for the period 01
January 2022 to 31 December 2022.

Our innovative and highly differentiated social network powered strategy has
enabled us to capitalise on the strong recovery in demand, delivering on the
guidance we set out at our Capital Markets Day on 23 November 2022.

FY 2022 Key highlights:

·    Net Bookings of 4.8m driven by recovery in Europe and in particular,
Asia and Oceania in H2 2022

·    Net GMV of €470m and Net Revenue of €70m benefiting from the
sustained increase in average booking values throughout the year

·    Marketing as a percentage of revenue( ) was 59%, reducing from 70%
in H1 2022 to 52% in H2 2022, supported by the launch of our app centric
'Social' strategy

·    FY 2022 Adjusted EBITDA of c. €1m

·    On 31 December 2022 the Group had a closing cash position of €19.0m

We are pleased to report that both the percentage of total bookings made by
Social Network Members, and the percentage of members who use our social
features has continued to trend positively since our Capital Markets Day
update.

As we exit 2022 and begin 2023, we are also pleased to report that early
trading results are in line with expectations.

Gary Morrison, Group Chief Executive Officer, said today:

"2022 was the year in which Hostelworld demonstrated the resilience of its
business model and the capacity to capitalise on market demand as it returned.
Most significantly, through a combination of operational progress, disciplined
cost control and the launch of our innovative 'Social' strategy, we returned
the business to profitable growth.

I am very encouraged by the strong foundations we have laid in 2022 and that
Hostelworld is well positioned for the successful and profitable future that
we outlined at our Capital Markets Day last year."

The Group will report its full year results for the twelve months ended 31
December 2022 on 22 March 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 (mailto: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.

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