Hostelworld Group Plc · LSE:HSW
Hostelworld — FY2024 Earnings Presentation
33 slides from Hostelworld's earnings presentation, Mar 20, 2025
Slide 1: 2024 Preliminary Results
2024 Preliminary Results March 20th 2025 OUR MISSION Help travellers find people to hang out with Get the App
Slide 2: Disclaimers
Disclaimers NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH SUCH DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.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 “Company") for informational and background purposes only. The foll
Slide 3: Highlights
Highlights
Slide 4: FY'24 Financial Summary
FY’24 – Financial Summary 6.9M 10.5M 80% Net Bookings Pax Bookings made by social members +6% vs FY’23 +4% vs FY’23 FY’23: 67% €13.21 €92.0M 46% Net ABV1 Net Revenue2 Marketing as % of -8% vs FY’23 -1% vs FY’23 Revenue3 FY’23: 50% €21.8M €2.0M 13.97cent EBITDA Net Cash (debt)4 Adjusted EPS FY’23 : €
Slide 5: Key Highlights
Key Highlights Executing our growth strategy ● Growth in social membership and engagement : +2m social members at FY, with message volume growth significantly outpacing booking growth in H2 ● 80% of bookings made by social members (+13% pts), fuelling App booking growth of +16% YoY ● Market coverage
Slide 6: FY'24 Results
FY’24 Results
Slide 7: Strong demand from European and UK customers
Strong demand from European and UK customers Net bookings by customer nationality YoY UK USA & Canada (18% of net bookings) (20% of net bookings) +10% EMEA* (41% of net bookings) +0% Asia (6% of net bookings) Global YoY Growth Rate +11% LatAm +8% Australia N. Zealand (7% of net bookings) (8% of net
Slide 8: Strong preference for lower cost destinations
Strong preference for lower cost destinations Net bookings by destination region YoY USA & Canada Western Europe Eastern Europe North Asia €46.41* €38.70* €25.54* €28.52* 4% of net bookings 32% of net bookings 8% of net bookings 3% of net bookings -2% -3% -4% +25% Global YoY Growth Rate South Asia €
Slide 9: Overall revenue growth tracking lower cost destination mix YoY
Overall revenue growth tracking lower cost destination mix YoY Generated Revenue1 by destination region YoY USA & Canada Western Europe Eastern Europe North Asia €46.41* €38.70* €25.54* €28.52* -10% -9% +24% -6% Global YoY Growth Rate South Asia MEA €11.21* €16.84* LatAm €17.07* Australia N. Zealand
Slide 10: App based social strategy driving solid margin growth, +7%
App based social strategy driving solid margin growth, +7% €m 50.0 1.0 -4.0 Net margin1 growth driven by: 3.0 • Net booking volume +6% vs. FY’23 (+0.4m) 45.0 2.9 • Marketing2 efficiency driven by app-based ‘Social’ strategy (46% FY’24, 50% FY’23) 40.0 • Other includes benefit of reduction in 46.6 de
Slide 11: Continued focus on tight cost control, despite inflationary pressures
Continued focus on tight cost control, despite inflationary pressures Opex as % of €m Revenue3 35% 28.0 27% 27% 24.9 25.3 24.8 24.0 Operating costs -2% lower than prior year1 • Wages & Salaries reduced 5%, use of lower 20.0 cost temporary contractors and a reduction in discretionary compensation 16.
Slide 12: Adjusted EBITDA growth of 19%, in line with full year guidance
Adjusted EBITDA growth of 19%, in line with full year guidance €m 30.0 Adj EBITDA performance in line with market guidance • 6% volume growth, mainly across low-cost 0.5 25.0 1.0 destinations -4.0 3.0 20.0 • Social strategy driving 16% growth in App 2.9 bookings and 4% reduction in marketing spend 1
Slide 13: Cash generation enabling early debt repayment, net cash position
Cash generation enabling early debt repayment, net cash position €m 25.0 Debt paid in full, return to net cash position • Closing cash of €8.2m, +€0.7m increase 20.0 • Prioritised early repayment of debt facilities in -10.3 15.0 full, €2.0m RCF and €8.3m term loan 14.3 • Net cash positive, with €6.2
Slide 14: Capital allocation FY 2024 outcomes
Capital allocation FY 2024 outcomes [Comprehensive capital allocation update will be provided at Capital Markets Day on 29 April] Repayment of AIB Net cash positive debt facility Complete Complete Continued Repayment of investment in the warehoused payroll business tax liability Complete On track 20
Slide 15: ESG is at the core of our culture and our category
ESG is at the core of our culture and our category Environmental Social Governance ● ‘Over 2,100 hostels awarded ‘Staircase ● Celebrated 25 years of Hostelworld ● Awarded silver ‘Taking Climate Action’ to Sustainability’ GSTC badge label from South Pole, 4th year running ● Launch of Culture code, ou
Slide 16: Strategy Update
Strategy Update
Slide 17: Continued investments in our Social platform
Continued investments in our Social platform 2024 PRELIMS MAR 2025 | 17
Slide 18: Expanding our inventory coverage
Expanding our inventory coverage Supply-side initiatives: Market coverage1 % • Increased resourcing at 76.8% regional offices to 76.4% strengthen local acquisition efforts • Streamlined sign-up process, broadened range 74.5% of channel managers we support 73.4% • Continued investments in Hostel even
Slide 19: Social members also become powerful brand advocates
Social members also become powerful brand advocates 2024 PRELIMS MAR 2025 | 19
Slide 20: Growth in social members is powering new customer acquisition via App
Growth in social members is powering new customer acquisition via App Cumulative social members New customers acquired via App % 2m FY '22 FY '23 FY '24 FY '22 FY '23 FY '24 2024 PRELIMS MAR 2025 | 20
Slide 21: Social platform continues to accelerate
Social platform continues to accelerate Percentage of Social Members who Active chat users Messages sent on Social Network can see LinkUps in trip 84% 83% 74% 75% 73% 56% at least 3 at least 1 4% 2% H1'22 H2'22 H1'23 H2'23 H1'24 H2'24 H1'22 H2'22 H1'23 H2'23 H1'24 H2'24 H1'23 H2'23 H1'24 H2'24 2024
Slide 22: Strategy continues to attract and retain high value customers
Strategy continues to attract and retain high value customersattract and retain high value customers Social members accounting for 80% of With new Social members making 2.2x … and are 3.2x more likely to make all bookings on our platform in FY'24 the bookings compared to non members these bookings o
Slide 23: Driving strong growth in App bookings, & reduced marketing expenses
Driving strong growth in App bookings, & reduced marketing expenses YoY growth rate in net bookings by platform Marketing as % of net revenue +6% YoY +16% YoY 58% 50% 46% FY '22 FY '23 FY '24 FY '22 FY '23 FY '24 Web bookings App bookings 2024 PRELIMS MAR 2025 | 23
Slide 24: Strong growth in recurring revenue, impacted by lower ABV's YoY
Strong growth in recurring revenue, impacted by lower ABV’s YoY Stronger customer retention rates/higher booking frequencies YoY, offset by lower cost destination mix FY generated revenue1 (€’M), segmented by year of customer acquisition €100 New customer revenue Return customer revenue €80 2024 202
Slide 25: Growth in market coverage and market share
Growth in market coverage and market share1 Category (FY23) Category (FY24) Overall capacity +3% with occupancy -2%, -> flat YoY • Strongest growth in Asia, bed ~ 215m prices increasing YoY ~ 215m • Europe slight contraction, bed prices slight decline YoY Market Market Coverage Coverage Market cover
Slide 26: 2024: Continued execution of our growth strategy
2024 : Continued execution of our growth strategy ● Investments in our Social platform continuing to drive solid Apps growth into 2025, encouraging ABV trends continue with YtD ahead of Q4, supported by bed price inflation in Asia ● Multi year core platform modernisation program will complete in H1’
Slide 27: Thank you!
Helping travellers find people to hang out with Thank you! Get the App
Slide 28: Appendices
Appendices
Slide 29: Balance Sheet
Balance Sheet FY’24 FY’23 €’m €’m Intangible assets 63.5 66.5 Property, plant and equipment 0.5 0.8 Deferred tax assets 13.8 15.5 Investment in associate1 - 1.1 • Intangible assets €63.5m (FY’23: €66.5m) Cash - 0.8 Total non-current assets 77.8 84.7 • Relates to Hostelworld brand name, IP, and techn
Slide 30: Income Statement
Income Statement FY’24 FY’23 €’m €’m Revenue 92.0 93.3 • Net revenue decreased -1% to €92.0m (FY’23: €93.3m) Administrative expenses1 (71.8) (76.6) Depreciation & amortisation expenses (9.1) (11.8) • 6.9m net bookings (FY’23: 6.5m) driven by record performance in Asia and Central America, resulting
Slide 31: Cash Flow Statement
Cash Flow Statement FY’24 FY’23 €’m €’m Adjusted EBITDA1 21.8 18.4 Working capital (increase)/decrease (1.4) 2.4 R&D tax credit 0.2 0.1 Exceptional costs - (0.2) Net interest and tax paid (0.3) (3.3) Cash generated – operating 20.3 17.4 • Cash generative business facilitating early repayment of borr
Slide 32: Our pioneering social network is the cornerstone of our strategy
Our pioneering social network is the cornerstone of our strategy Customer invited Customer leaves Customer signs up to into City and Hostel City and Hostel Chat our Social Network Books on any platform Chat Groups Groups (web, iOS, or Android) 14 days before 3 days after check-in check-out OTA only
Slide 33: Delivering long term EBITDA and FCF growth
Delivering long term EBITDA and FCF growth Revenue Growth ● New customer growth Unique customer need led growth strategy ● Strong retention rates Margin Growth X EBITDA/FCF ● Reduces CAC App centric Increased ● Lower marketing cost as a % EBITDA growth delivery model of net revenue Increased Operati