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Jul 10 2024, 08:45 IST/BST
Hostelworld released a H124 trading update this morning. There were three key points: (1) Net revenue +1% year-on-year (yoy), driven by net bookings +9% but offset by average booking value -10% yoy due to changes in geographical mix; (2) the adjusted EBITDA (aEBITDA) margin was 21%, driven by improvements in direct marketing spend as % of revenue of 45% (expected <50%); (3) Net debt was €2.6m, with the AIB facility fully repaid. Management noted that strong consumer demand for low-cost destinations in Asia and Central America is likely to continue (resulting in revenue growth lagging net bookings on a FY basis) but was pleased with its Social Strategy – driving net margin growth of 23% yoy – and reiterated aEBITDA guidance in line with market consensus.
Jul 10 2024, 08:45 IST/BST