10th Jul 2025 12:29
(Alliance News) - Hostelworld Group PLC shares fell on Thursday as it said it expects to report weaker interim profit and flat revenue, though it said it is encouraged by more positive trends in June.
Shares in Hostelworld were down 12% at 123.96 pence in London on Thursday afternoon.
The Dublin-based online travel agent focused on hostel market said adjusted earnings before interest, tax, depreciation and amortisation of EUR7.4 million are expected for the first half of 2025 to the end of June, down 23% from EUR9.6 million a year prior.
Hostelworld said it expects to report flat revenue for the period of EUR46.7 million, with net bookings flat at 3.7 million.
Net average booking value was down 1% to EUR13.40, though Hostelworld said its Asia arm "continues to grow at record levels".
The company also noted booking volume and ABV growth across all key regions during June, with strong demand for intra-European travel.
It said it would reinstate a progressive dividend policy of between 20% and 40% of adjusted profit after tax, with an interim payment expected in the second half of the year.
Looking ahead, Hostelworld said it expected to report full year adjusted Ebitda in line with market consensus. It sees the consensus as adjusted Ebitda of EUR19.9 million for 2025.
"Trading over the last six months has been in line with expectations as outlined at our capital markets day in April. Although trading in the first half showed mixed results across regions and channels, we are encouraged by the positive trends observed in June," said Chief Executive Officer Gary Morrison.
"While European bed prices have seen some deflation, this is helping to stimulate demand. Despite a continuation of the trend for low-cost destinations in the first half, we are seeing an improving geographic mix, supported by a pickup in European demand."
Hostelworld will report its half year results for the six months to the end of June on July 30.
By Michael Hennessey, Alliance News reporter
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