5th Apr 2016 08:53
LONDON (Alliance News) - Hostelworld Group PLC on Tuesday said it swung to a profit in 2015 in its first set of results since listing in London late last year, after realising gains relating to its initial public offering, although adjusted earnings fell on increased investment into the Hostelworld brand.
The hostel-focused online booking platform said it made a pretax profit of EUR80.5 million in 2015, after suffering a EUR77.0 million pretax loss in 2014. It made financial gains of EUR104.2 million in 2015, while the prior year was burdened with a EUR50.7 million impairment loss.
The EUR104.2 million gain arose from shareholder loans and interest being waived or exchanged for shares as part of Hostelworld's IPO, while EUR181.4 million was paid to shareholders as consideration for preference shares and the redemption of shareholder loans and accrued interest.
Adjusted earnings before interest, tax, depreciation and amortisation, which excludes exceptional items, fell to GBP23.6 million from GBP27.0 million, due to increased investment costs relating to the re-launch of the Hostelworld brand in the first half of the year. Adjusted Ebitda stabilised in the second half of the year, Hostelworld said.
Revenue grew to EUR83.5 million from EUR79.3 million.
Bookings for the group's primary Hostelworld brand grew by 17% in the year, while total group bookings including Hostelbookers and other brands grew by 1%. The flagship Hostelworld brand accounts for around 73% of total group bookings, meaning bookings for the other brands declined. Hostelworld said it is taking steps, including the transition of Hostelbookers to a new platform earlier in 2016, to reduce the rate of decline among the supporting brands.
Average booking value increased by 5% in the year, helping to boost revenue.
Hostelworld will pay a maiden dividend of EUR2.75.
"The new financial year has started well and in line with our expectations. The strength of our brand and technology together with healthy booking numbers and continued pricing improvements, underpinned by a growing marketplace, gives the board confidence in the group's future prospects," Chief Executive Feargal Mooney said in a statement.
Shares in Hostelworld were trading down 0.4% at 247.97 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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