REG - Hostelworld Grp PLC - Trading Update

HostelworldAnnouncement

18/10/2023 07:00

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RNS Number : 4246Q  Hostelworld Group PLC  18 October 2023

LEI:213800OC94PF2D675H41

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

Trading Update

Largest YTD revenue on record, full year Adjusted EBITDA guidance upgraded

Hostelworld is pleased to provide an update on trading up to 30 September 2023
("YTD").

Key highlights:

·    Record YTD Net GMV(1) and revenue(2) of €496.4m (+38% year on year)
and €75.2m (+38% year on year), respectively

·    Net bookings totalled 5.0m (+43% year on year), driven by continued
strong booking growth across all regions, with Southern Europe, Asia and
Oceania destinations remaining ahead of pre pandemic levels

·    Net Average Booking Value of €14.94, (-4% year on year), driven by
a greater proportion of Asian destination bookings, partially offset by
continued bed price inflation

·    Direct marketing as a percentage of revenue(2) amounted to 51%, (down
10% year on year) powered by our social strategy

·    On 30 September 2023 the Group had a closing cash position of €8.1m
and a net debt(3) position of €13.4m; in part driven by a €2.0m reduction
in our revolving credit facility from €5.0m to €3.0m

·    Interest rate on Allied Irish Banks plc debt facility reduced from
3.25% to 2.65% over EURIBOR, as ratio of Net Debt to adjusted EBITDA is now
less than 1

 

(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

 

Outlook:

Based on our record revenue performance YTD, we now expect adjusted EBITDA to
be in the range of €17.5m to €18.0m for FY23 (up from €16.5m to €17.0m
communicated at our AGM in May 2023). This guidance is provided subject to any
deterioration in the macro-economic environment, air travel disruptions, or
any other material external factors in the balance of year.

Gary Morrison, Group Chief Executive Officer, commented:

I am delighted that our strong trading performance has continued into Q3,
resulting in record YTD revenue. In particular, I am pleased to report we
continue to see growth in the proportion of bookings made by social members in
Q3 (59% in September) and continued growth in year over year market share
through the quarter. Collectively, these operational results are driving an
improved EBITDA outlook for the year, and a further reduction in our net debt
position and interest rates for the balance of the year.

Overall, the Board remains very confident in the capacity of our highly
differentiated asset-light business model to deliver long-term profitable
growth and create shareholder value."

 

 

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.

 

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