Hostelworld, the Dublin-based online travel agent, has raised its earnings guidance for 2023 amid strong growth in bookings and a reduction in its debt pile.
The group, which is focused on the hostel sector, said in a third quarter trading update on Wednesday that net bookings on its platform surged by 43 per cent to 5 million in the nine months to the end of September.
Hostelworld said it had seen “strong booking growth” across all regions, Southern Europe, Asia and Oceania destinations where booking remained ahead of pre-pandemic levels.
Revenues, meanwhile, climbed 38 per cent year-on-year to €75.2 million while gross merchandise value – revenues generated through bookings minus the cost of cancellations – also increased 38 per cent to €496.4 million.
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Hostelworld said it had also seen a reduction in its net debt in the three months to the end of September, partially driven by a €2 million reduction in its revolving AIB credit facility from €5 million to €3 million.
Based on its performance, the group said it is increasing its full-year adjusted earnings guidance to between €17.5 million and €18 million, up from €16.5 million to €17 million in May.
“I am delighted that our strong trading performance has continued into the third quarter, resulting in record YTD (year-to-date) revenue,” said Hostelworld chief executive Gary Morrison. “Collectively, these operational results are driving an improved [adjusted earnings] outlook for the year, and a further reduction in our net debt position and interest rates for the balance of the year.”
He said: “Overall, the board remains very confident in the capacity of our highly differentiated asset-light business model to deliver long-term profitable growth and create shareholder value.”
