Business
Interim results 2023
Interim results 2023.
About this update from Hostelworld Group Plc
[{"type":"text","content":"\n\n \nHostelworld Group plc\n(\"Hostelworld\" or the \"Group\" or the \"Company\")\nInterim Results 2023\nLargest H1 revenue on record\n10th August 2023: Hostelworld, a leading global Online Travel Agent (OTA) focused on the hostel market, is pleased to announce its interim results for the six-month period ended 30 June 2023\nStrong financial delivery and strategic progress in H1 2023:\n· Record first half Net GMV2 and generated revenue3, of €339.5m (+57% year on year) and €51.5m (+57% year on year) respectively\n· Robust booking growth across all regions: Central America, South Asia and southern European countries ahead of pre COVID-19 levels\n· Improved marketing efficiency powered by social strategy\n· Increasing operating leverage through marketing efficiency and operating cost discipline\n· Strong cash conversion driving growth in operating cashflows - Debt refinancing completed with materially lower interest rates\nWell positioned for further profitable growth:\n· Strong category growth, stronger HW growth with the resumption of cross border travel post Omicron and Social strategy driving share gains\n· Continued investment in Social platform: richer profiles, messaging capabilities and launch of Linkups (hostel hosted events)\n· Highly cash generative business model, continuing to deleverage\n· Reiterating FY 2023 earnings guidance of adjusted EBITDA €16.5m - €17.0m\n· Firmly on track to meet November 2022 Capital Market Day growth targets\nFinancial highlights:[1]\n· Net GMV[2]of €339.5m (+57% year on year)\n· Net Revenue of €45.8m, H1 2022 €28.0m (+64% year on year)\n· Net bookings totalled 3.40m, H1 2022: 2.07m (+64% year on year)\n· Net Average Booking Value (\"ABV\") of €15.15, H1 2022: €15.82, a 4% decrease driven by a greater proportion of Asian destination bookings, partially offset by continued bed price inflation\n· Direct marketing costs as a percentage of revenue[3] amounted to 51%, H1 2022: 60% (-9%)\n· Adjusted EBITDA of €5.1m, H1 2022: €5.2m loss\n· Loss in the period of €7.5m, H1 2022: €14.3m\nBalance sheet and cash flow:\n· As at 30 June 2023 total cash and cash equivalents of €10.7m (31 December 2022: €19.0m) and total net debt[4] of €16.2m (31 December 2022: €21.6m)\n· Completed refinancing of €30.0m legacy debt facility, replacing with a new €20.0m facility from AIB. New ...