Hostelworld Group PLC, a Dublin-based hostel booking company, has raised its profit forecasts for 2023 due to strong bookings and a decrease in debt. In the nine months leading up to September 30, the company saw a 38% increase in revenue, reaching €75.2 million. Net bookings rose by 43% compared to the previous year, reaching 5 million. Hostelworld attributed these results to “consistently strong bookings” across all regions, with Southern Europe, Asia, and Oceania destinations surpassing pre-pandemic levels. As of September 30, the company had €8.1 million in closing cash and €13.4 million in net debt, partly due to a €2 million reduction in its revolving credit facility, which decreased from €5 million to €3 million, according to Hostelworld.
Consequently, the booking platform has revised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the full year, now expected to be between €17.5 million and €18 million, compared to the previous range of €16.5 million to €17 million. The adjusted EBITDA in 2022 was €1.3 million. CEO Gary Morrison expressed delight at the company’s continued strong performance, resulting in a record revenue for the year. He also expressed confidence in the company’s differentiated and asset-light business model’s ability to generate long-term profitable growth and create value for shareholders.
Following the announcement, Hostelworld’s shares rose by 1.7% to 120.00 pence each in London on Wednesday morning.