LONDON (ShareCast) - (Sharecast News) - Hostelworld reported stable interim results on Wednesday, with early success from its new 'Elevate' monetisation tool and a sharp rise in social engagement helping to support booking volumes and position the group for long-term growth.
The London-listed company reaffirmed its full-year guidance, as outlined at its capital markets day in April.

Net revenue was flat year-on-year at €46.7m, as net bookings of 3.7 million and a slightly lower average booking value of €13.40 offset each other.

Adjusted EBITDA came in at €7.4m, down from €9.6m in the prior-year period, while operating profit fell 47% to €2.1m.

Operating costs were broadly unchanged at €12.4m, representing 27% of net revenue.

The company noted that its performance improved over the course of the half year, with booking volumes and average booking values returning to growth in late May and continuing to strengthen into July.

Higher commission rates driven by the Elevate platform helped to offset bed price deflation and a weaker US dollar.

"While the first half was impacted by several external factors, we saw encouraging positive trends in late May, which have continued through into June and July, including growth in booking volumes and average booking values," said chief executive Gary Morrison.

"Our strategic initiatives, particularly the early success of our 'Elevate' marketplace tool, are delivering a positive impact on our trading performance."

Blended commission rates rose to 15.8% in the first half, up from 15.2% a year earlier.

App bookings were up 11% year-on-year, driven by growth in the company's social network, where the number of registered users increased to nearly three million, up from 1.8 million in June 2024.

Messages sent via the platform rose 42% on a trailing six-month basis.

Hostelworld reiterated that other strategic initiatives, including social platform monetisation and expanding its budget accommodation offering, remained on track for launch later this year.

Its new 'Travel Plans' feature had seen strong early adoption, extending user engagement into the pre-booking phase.

The company reported a net cash position of €6.1m at the end of June and a cash balance of €11m.

It reinstated its progressive dividend policy with an interim payout of 0.82 euro cents per share, payable on 19 September, and announced a £5m share buyback programme, which started in June.

Morrison said the foundational work completed in the first half had laid the groundwork for sustained growth.

"We are well positioned for delivering on our Vision to be the world's leading social travel platform."

At 1353 BST, shares in Hostelworld Group were down 0.41% at 121p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

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