REG - Hostelworld Grp PLC - Trading Update

HostelworldAnnouncement

12/07/2023 07:00

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RNS Number : 6939F  Hostelworld Group PLC  12 July 2023

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 GMV(1) of €339.5m (+57% YoY) and
revenue(2) 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 revenue(2) 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 debt(3) 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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