TIDMHSW
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 EUR496.4m (+38%
year on year) and EUR75.2m (+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 EUR14.94, (-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
EUR8.1m and a net debt (3) position of EUR13.4m; in part driven by
a EUR2.0m reduction in our revolving credit facility from EUR5.0m
to EUR3.0m
-- 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 EUR17.5m to EUR18.0m for FY23
(up from EUR16.5m to EUR17.0m 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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