Hostelworld Group Plc · LSE:HSW
Hostelworld — FY2021 Earnings Presentation
21 slides from Hostelworld's earnings presentation, 2022
Slide 1: 2021 Preliminary Results
2 0 2 1 Pr e l i m i nar y R e s u l ts
Slide 2: FY 2021 – Significant Developments
Selina Nosara | Costa Rica 2021 Preliminary Results | Slide 2 FY 2021 – Significant Developments • Recovery picked up as travel restrictions eased and confidence returned • Growth accelerated in key destinations where borders reopened • Temporary Omicron setback in final 6 weeks of trading…. experie
Slide 3: FY 2021 – Financial Summary
@ronjatheexplorer 2021 Preliminary Results | Slide 3 FY 2021 – Financial Summary Net Bookings Operating Costs1 1.5m +0% VS FY20 €20.9m -15% VS FY20 -79% VS FY19 -25% VS FY19 Net Revenue EBITDA €16.9m +10% VS FY20 - €17.3m FY20: -€17.3M -79% VS FY19 FY19: +€20.5M Net ABV Cash2 €12.11 +30% VS FY20 €25
Slide 4: Steady recovery throughout the year - Omicron impacted Nov/Dec trading
2021 Preliminary Results | Slide 4 Steady recovery throughout the year - Omicron impacted Nov/Dec trading Weekly net revenue1 and net bookings1 (as a % of 2019 2) 1 Net revenue excludes the impact of deferred revenue and other adjustments. Net revenue and net bookings are reported on a Hostelworld b
Slide 5: Regional recovery in bookings driven by easing of travel restrictions
2021 Preliminary Results | Slide 5 Regional recovery in bookings driven by easing of travel restrictions Weekly net bookings1 by destination (as a % of 2019 2) 1 Net bookings are reported on a Hostelworld brand only basis 2 2019 figures used as pre-covid comparable
Slide 6: Travel restriction volatility impacted trading economics
2021 Preliminary Results | Slide 6 Travel restriction volatility impacted trading economics Weekly net revenue1 and net direct margin2 (as a % of 2019 3) 1 Net revenue excludes the impact of deferred revenue and other adjustments 2 Net direct margin equals net revenue less direct marketing costs 3 2
Slide 7: Resilient hostel supply despite extended impact of low demand
2021 Preliminary Results | Slide 7 Resilient hostel supply despite extended impact of low demand Number of active hostels1 listed on HW platform Number of producing2 hostels (as a % of 2019) -6.7% 1 A Hostel is defined as active if they have an active profile on our website and have not been suspend
Slide 8: Substantial progress on rightsizing our cost base
2021 Preliminary Results | Slide 8 Substantial progress on rightsizing our cost base…. +€7m of operating cost removed from -12% vs. FY-19 the business vs. FY 2019 -25% vs. FY-19 -15% vs. FY-20 • Headcount reduced from 331 as at March 2020 to 215 in December 2021 Costs €’M • Maintained spend in techn
Slide 9: …and a strong cash position to leverage demand-led growth drivers
2021 Preliminary Results | Slide 9 …and a strong cash position to leverage demand-led growth drivers • Monthly average operating cost cash burn continues to reduce, €1.3m full year average • €1.2m AIB short term invoice financing facility repaid • €30 million 5-year term facility signed in February
Slide 10: We are building a highly effective business model
2021 Preliminary Results | Slide 10 We are building a highly effective business model…. Data science led marketing allocation Our Customers… targets key customer segments and lower acquisition costs • Majority go on multi-destination trips, many come back each year • Use hostels as a means to meet p
Slide 11: …and we’ve made significant progress on our sustainability agenda
2021 Preliminary Results | Slide 11 …and we’ve made significant progress on our sustainability agenda… • Reduced carbon footprint and fully offset FY 2021 emissions • Working in partnership with South Pole towards climate neutral accreditation • New HOSCAR “The Eco-Warrior” category • Members of Glo
Slide 12: …and we have clear strategic priorities for FY22
2021 Preliminary Results | Slide 12 …and we have clear strategic priorities for FY22 • Continued investment in our core business through focused investments in marketing capabilities, user experience improvements, inventory competitiveness and platform modernisation • Iterating on Social features –
Slide 13: Clear evidence that confidence is returning and pent up demand is being released
2021 Preliminary Results | Slide 13 Clear evidence that confidence is returning and pent up demand is being released Weekly net revenue1, net bookings and net direct margin2 (as a % of 20193) 1 Net revenue excludes the impact of deferred revenue and other adjustments. 2 Net direct margin equals net
Slide 14: Regional recovery continuing as travel restrictions continue to ease
2021 Preliminary Results | Slide 14 Regional recovery continuing as travel restrictions continue to ease Weekly net bookings1 by destination (as a % of 2019 2) 1 Net bookings are reported on a Hostelworld brand only basis 2 2019 figures used as pre-covid comparable
Slide 15: All travel segments seeing positive trends as restrictions are eased
2021 Preliminary Results | Slide 15 All travel segments seeing positive trends as restrictions are eased Weekly net bookings1 by trip type (as a % of 20192) 1 Net bookings are reported on a Hostelworld brand only basis 2 2019 figures used as pre-covid comparable Long-haul: source IP continent does n
Slide 16: Summary and outlook
The Northshore Hostel | Hawai 2021 Preliminary Results | Slide 16 Summary and outlook • Strong brand recognition across hostellers and hostel owners • Asset light and highly cash generative business model • Clear strategy in place to enhance capabilities, grow revenues and expand margin • “Rightsize
Slide 17: Appendices
2 0 2 1 Pr e l i m i nar y R e s u l ts Appendices
Slide 18: Income Statement
Onederz Hostel | Cambodia 2021 Preliminary Results | Slide 18 Income Statement • Net revenue increased by 10% to €16.9m (FY20: €15.4m). The Group's net booking volumes for FY21 were in line with FY20. • Within administration expenses: o Direct marketing costs increased to €12.8m (2020: €7.5m) o Rema
Slide 19: Balance Sheet
Viajero Tayrona Hostel & Ecohabs | Colombia 2021 Preliminary Results | Slide 19 Balance Sheet • Property, plant and equipment decrease from €4.5m to €0.3m, Group exited long-term lease commitments in Dublin and London offices, decrease in related current and non-current lease liabilities. • Reduced
Slide 20: Cash Flow Statement
@stayhostelrhodes 2021 Preliminary Results | Slide 20 Cash Flow Statement • Adjusted EBITDA loss €17.3m in line year on year. • €4.8m increase in working capital movement due to: o €5.1m increase in trade and other payables (Irish payroll taxes payable has increased by €4.1m in 2021 and €0.8m increa
Slide 21: Disclaimer
Selina Kalu Yala | Panama 2021 Preliminary Results | Slide 21 Disclaimer • NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH SUCH DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. • This presentation has been prepared by Hostelworld Group plc (the “C