TIDMHSW
RNS Number : 1674Z
Hostelworld Group PLC
10 January 2024
LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group")
Full Year Trading Update for Year ended 31 December 2023
Adjusted EBITDA exceeding market guidance driven by record
revenue and bookings growth
Hostelworld is pleased to provide an update on trading for the
period 01 January 2023 to 31 December 2023.
Continued execution of our highly differentiated growth strategy
has enabled us to capitalise on robust demand in our key markets
and to grow market share, while reducing paid marketing investment
to the low end of our guidance range.
Key highlights:
á Record net GMV (1) and revenue (2) of EUR619m (+32% year on
year) and EUR93.7m (+32% year on year), respectively
á Net bookings totalled 6.5m (+37% year on year) and net
bed-nights totalled 22.7m (+30% year on year), driven by strong
growth across all regions
á Net average booking value of EUR14.36, (-4% year on year),
driven by a greater proportion of Asian destination bookings,
partially offset by bed price inflation
á Direct marketing as a percentage of revenue (2) amounted to
50%, (-8% year on year) powered by our social strategy
á FY 2023 adjusted EBITDA of c. EUR18.3m exceeds the upper end
of market guidance (EUR17.5m - EUR18.0m)
á On 31 December 2023 the Group had a closing cash position of
EUR7.5m and a net debt (3) position of EUR12.3m, reflecting a
further EUR1.0m reduction in our drawn revolving credit facility
from EUR3.0m to EUR2.0m
(1) Net GMV is gross transaction value of bookings 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
Gary Morrison, Group Chief Executive Officer, commented:
"I am very pleased to report another strong year of strategic
progress for Hostelworld, which has been reflected in our results.
Over 2023 we grew market share, delivered record revenues and
increased operating leverage through a combination of reduced
marketing spend (as a percentage of net revenue) and continued
operating cost discipline to deliver EBITDA which exceeds the upper
end of our guidance range. In particular, I am also pleased to
report our full year marketing costs as a percentage of net revenue
fall from 51% in the first half of the year to 50% on a full year
basis, which demonstrates the ability of our strategy to grow
market share whilst reducing marketing costs.
These results coupled with the strong cash conversion
characteristics of our business model and a new facility agreed
with Allied Irish Bank in May 2023, have enabled to us to
strengthen our balance sheet and reduce our interest costs. As of
31(st) December 2023 we have repaid EUR5.5M of the original EUR7.5M
revolving credit facility drawn down in May, with interest on the
balance now charged at 2.65% over EURIBOR.
Going into 2024, we are strongly positioned to deliver against
our medium-term financial commitments. We have started the new year
with strong momentum and I feel very confident that we will
continue our track record of continued profitable growth and value
creation for our shareholders."
The Group will report its full year results for the year ended
31 December 2023 on 21 March 2024.
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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