Hostelworld swings to loss in H1 as pandemic-led travel restrictions dents bookings

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Hostelworld swung to a loss in the first half of the year as pandemic-led travel restrictions deepened the decline in bookings.

For the half-year ended June 30, the company reported a pre-tax loss of €18.8m, compared with a profit of 394K on-year, as revenue slumped 69% to €12m.

Bookings decline 67%, compared with a 10% decline on-year.

'The COVID-19 pandemic has resulted in significant trading disruption for our business and the global travel industry,' the company said.

Despite the loss the company said it would pay a share-based dividend by way of a bonus issue, based on a value of 1 euro cent per share.

'Given the current trading backdrop, we remain focused on organic initiatives in the near term, until a resumption of normal trading,' it added.

'In light of continued market uncertainty, the Group is not in a position to provide full year guidance until such time as the overall impact of COVID-19 on the Group becomes clearer.'

At 8:44am: (LON:HSW) Hostelworld Group Plc share price was -0.2p at 62.7p