LONDON (ShareCast) - (Sharecast News) - Hostelworld said on Thursday it expects to hit market forecasts with its full-year profits, though shares fell sharply after the company reported flat bookings despite a big increase in marketing costs.
The social media-powered online travel agent said net revenues totalled €46.7m in the six months to 30 June, in line with expectations but unchanged over last year.

Net bookings were also flat at 3.7m, while the net average booking value fell 1% to €13.40.



Nevertheless, the company did said that booking volumes and average booking values increased across all key regions in June, with strong demand for intra-European travel driven by modest bed price deflation.

Adjusted EBITDA fell to €7.3m from €9.6m the year before, with direct marketing totalling 51% of revenues, up from 45% previously. However, chief executive Gary Morrison said this was "primarily driven by cost inflation in the first few months (which has since moderated) and the growth of paid channels as a proportion of total web channels".

Hostelworld said it still expects to meet the adjusted EBITDA consensus forecast of €19.9m for the full year, compared with €21.8m in 2024.

"Although trading in the first half showed mixed results across regions and channels, we are encouraged by the positive trends observed in June," said Morrison.

The shares were down more than 12% at 123.9p by the midday mark.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE