Yahoo Finance Travel to Asia and the Americas drives strong Hostelworld results
Online travel agency Hostelworld has reported a strong first-half, driven by a record performance in Asia and Central America.
Total bookings have risen by nine per cent year-on-year to reach 3.7m.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 88 per cent, due to margin growth along with a “continuing focus on cost”, group chief executive officer Gary Morrison said.
Net revenue at the Irish company rose by one per cent year-on-year to £39.3m.
Hostelworld has fully repaid its AIB residual debt facility, closing the quarter with a net debt position of £2.2m and a cash position of £4.23m.
“I am very pleased with our performance for the year to date, driven by strong consumer demand for low cost destinations in Asia and Central America,” Morrison said.
“Over the balance of the year, we expect consumer demand for low cost destinations to continue, resulting in revenue growth lagging net bookings growth on a full year basis.”
Operating costs fell by two per cent to £10.5m, while EBITDA rose to £8.12m.
While the average value of a booking decreased, the company noted that high demand for cheap hostels in Asia has pushed the average down, as well as a “slight increase” in the number of solo travellers.
The company noted an increase in booking from social members (customers who engage with the app’s social features), from 74 per cent of total bookings in the last quarter of 2023 to 80 per cent in the first half of 2024.
Hostelworld was hit hard when the pandemic arrived as international travel ground to a halt. Its shares crashed from 240.09p in April 2019, to 49p in March 2020.
The share price has since rebounded to 164p.
“Looking ahead, I remain very confident in our growth strategy and that we are well positioned, well financed and firmly on track to deliver against our objectives outlined in our capital markets day presentation in November 2022,” Morrison said.
