Hostelworld Group Narrows Loss for H1, Backs Yearly Guidance
Hostelworld Group reports a narrowed pretax loss for the first half of the year and strong revenue growth driven by key regional markets. Future outlook shows high expectations for adjusted EBITDA.
Troy D. Hanson
August 11, 2023
Hostelworld Group, the London-listed online hotel-booking platform, has reported a narrowed pretax loss for the first half of the year. The company's revenue has increased due to a strong performance in key regional markets. Hostelworld Group also confirmed its guidance for the full year.
In the first half, Hostelworld Group's pretax loss was €7.1 million, a significant improvement compared to the €14.7 million loss recorded in the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €5.1 million, up from a loss of €5.2 million in EBITDA.
The company experienced a growth in net revenue, which rose from €28 million to €45.8 million. This boost was driven by the strong performance of Hostelworld Group in its key markets of Europe, Asia, and Oceania. Net bookings increased by 64% to 3.4 million.
Furthermore, net gross merchandise value (GMV) - the gross transaction value of bookings minus cancellations - increased by 57% to €339.5 million.
Hostelworld Group has high expectations for its 2023 adjusted EBITDA, anticipating a range between €16.5 million and €17 million.
As of 0740 GMT, shares of Hostelworld Group have risen by 2 pence, or 1.5%, reaching 135 pence.