Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Hostelworld Group PLC on Wednesday reported noteworthy first half earnings performance as the company makes strides to reduce debt.
The Dublin-based online travel agent focused on the hostel market said in the first half that ended June 30, net bookings rose 8.8% to 3.7 million from 3.4 million last year, driven by record performance in Asia and Central America.
Adjusted earnings before interest, taxes, depreciation and amortisation increased 88% to €9.6 million from €5.1 million, as margins rose to 21% from 11%.
Net revenue marginally moved upwards 1.3% to €46.4 million from €45.8 million.
Net average booking value fell 10% to €13.60 from €15.15 due to a greater proportion of bookings in Asia and a slight increase in solo customers.
The company’s closing cash position was down 53% to €5.0 million from €10.7 million, while
net debt fell 84% to €2.6 million from €16.2 million.
Chief Executive Officer Gary Morrison said: ‘Over the balance of the year, we expect consumer demand for low cost destinations to continue..I am also pleased that marketing expense as a proportion of revenue has improved significantly year-on-year resulting in a 23% increase in net margin.’
Hostelworld shares were down 4.9% to 154.00 pence each in London on Wednesday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.