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Hostelworld Group is the leading global hostel-booking platform with Hostelworld, Hostelbookers and Hostels.com in its portfolio operating in 19 different languages. Connecting young travellers with hostels around the world, Hostelworld has over eight million reviews across 33,000 properties in more than 170 countries.
Hostelworld’s customers aren’t your average tourists; they crave experiences not souvenirs and want to be in the heart of the action. They want to Meet the world, and it’s the social nature of hostels that facilitates their travel adventures.
By tuning into what makes millennial travellers tick, Hostelworld has become the leading hostel-focused brand amongst this target audience with 90% being under the age of 35.
The Hostelworld Group went public in November 2015, listing on the main London and Dublin stock exchanges. Headquartered in Dublin, Hostelworld has offices around the world in London, Shanghai, Sydney and Seoul, and was recently awarded as a Best Workplace for 2016 by the Great Place To Work Institute.
In May 2015 Hostelworld underwent a global rebrand, moving away from being just a transactional business and started putting customers at the heart of everything it did, with millennial travel at its core. The re-brand saw Hostelworld create a whole new identity and proposition – ‘Meet the world’.

http://www.hostelworldgroup.com

Released : 28 Mar 2017 07:00

Hostelworld Group plc Preliminary Results for the Year Ended 31 December 2016
 
Hostelworld, the world's leading hostel-focused online booking platform, is pleased to announce its preliminary results for the year ended 31 December 2016.
 
Operational Highlights
 
·      FY 2016 performance in line with expectations
·      Total group bookings 1% lower, reflecting reduced investment in lower margin bookings and tough mid-year market conditions; H2 group bookings up 2% against H2 2015
·      Strong core Hostelworld brand bookings growth of 18%; H2 growth of 21% against H2 2015
·      Good progress in mobile, with 49% of Hostelworld brand bookings from mobile devices (2015: 41%)
·      Marketing efficiencies driving more profitable booking mix
-     Bookings from not-paid-for channels grew to 61% of total (2015: 58%)
-     Marketing expenses as a percentage of revenue decreased to 41% (2015: 45%)
·      Higher commission bookings using Elevate product increased to 30% of group total (2015: 18%)

·      Asia remains fastest growing destination

Financial Highlights

·      Adjusted EBITDA of €23.9m up 7% on a constant currency basis with revenue flat; reported adjusted EBITDA up 1% on revenue 4% lower

·      Adjusted EBITDA margin increased to 30% (2015: 28%)

·      Adjusted Earnings Per Share of €0.20 (2015: €0.22)

·      Group adjusted profit after tax of €19.4m (2015: €21.0m)
·      Strong underlying cash conversion of 90% and cash balances of €24.6m
·      Proposed final dividend per share of 10.4 euro cent, reflecting 75% distribution of adjusted profit after tax  for the year in line with our stated policy
·      Proposed supplementary dividend of 10.5 euro cent per share which reflects the strong balance sheet and cash generative business model

 
Feargal Mooney, Chief Executive Officer, commented:
 
"As widely reported, 2016 was challenging for the travel industry, which had to contend with the impact of terrorist attacks and the implications of Brexit. Whilst our performance, particularly in our key European market during the second and third quarters of the year, was impacted by these events the Group saw improved momentum in the latter part of 2016 which has continued through the first quarter of 2017.
 
Our continued focus on key strategic initiatives is supporting year on year bookings growth, and together with our highly cash generative business model positions us well to benefit from continued market growth."
 
ends
 
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014.
 
For further information please contact:

Hostelworld Group plc
Feargal Mooney, Chief Executive Officer         
 
Weber Shandwick                                                  
Nick Oborne
Tom Jenkins
today: +44 (0) 20 7067 0000
thereafter: +353 (0) 1 498 0700

+44 (0) 20 7067 0000

 


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