15th Oct 2024 10:59
(Alliance News) - Hostelworld Group PLC on Tuesday reiterated its earnings expectations for full-year 2024, as net bookings rise in the first three quarters to date.
The Dublin-based online travel agent focused on the hostel market said net bookings for the nine months ended September 30 stood at 5.4 million, up 8.0% from 5.0 million during the same nine-month period last year and driven by "record performances" in Asia and Central America.
However, Hostelworld said the decline in net average booking value, as it fell 9.4% year-on-year to EUR13.54 from EUR14.94, was due to "a greater proportion of Asian destination bookings and a slight increase in the proportion of solo customers, consistent with the trends outlined at interims".
Operating costs in the first three quarters of the year were EUR18.7 million, falling 3% year-on-year.
Hostelworld reiterated that its expectations for adjusted earnings before interest, tax, depreciation and amortisation for calendar 2024 remained in line with market guidance, citing a company-compiled consensus of EUR21.6 million. This would represent a 17% increase from EUR18.4 million the year before.
Adjusted Ebitda in the nine-month period to September 30 was EUR17.8 million.
Chief Executive Officer Gary Morrison said: "I am pleased with our performance year to date, which has been driven by strong consumer demand from Europe, the UK and North America to low-cost destinations in Asia and Central America. The strong cash generative nature of this business has seen us return the balance sheet to a net cash position in the third quarter of 2024, as previously guided.
"In addition to our strong financial performance, I am equally pleased with the continued impressive performance of our Social Network, as a result of which, marketing expense as a proportion of revenue has improved significantly year-on-year. This has resulted in a net margin growth of 10% and, combined with our continued focus on cost, has delivered a 28% increase in adjusted Ebitda year-on-year.
"Looking ahead, I remain very confident in our business model and our continued success in building a platform for long-term profitable growth."
Shares in Hostelworld were down 1.1% at 135.50 pence each in London on Tuesday morning.
By Emily Parsons, Alliance News reporter
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