Hostelworld Group PLC has raised its profit expectations for the full year of 2023, thanks to strong bookings and a decrease in debt. The Dublin-based company that books hostels reported that revenues increased by 38% to EUR75.2 million in the nine months ending September 30. Net bookings amounted to 5.0 million, a 43% increase compared to the previous year. Hostelworld attributed this to “continuously strong bookings” in all regions, with destinations in Southern Europe, Asia, and Oceania staying above pre-pandemic levels.
As of September 30, the cash position was EUR8.1 million, and the net debt position was EUR13.4 million, partly due to a reduction of EUR2.0 million in the ongoing credit facility from EUR5.0 million to EUR3.0 million, according to Hostelworld. As a result, the booking platform has raised its expectations for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year to EUR17.5 million to EUR18.0 million, up from EUR16.5 million to EUR17.0 million previously. The adjusted EBITDA for 2022 was EUR1.3 million.
Chief Executive Officer Gary Morrison expressed his delight with the company’s strong trading performance, leading to record revenue year-to-date. The board remains confident in the capacity of their highly differentiated asset-light business model to deliver profitable long-term growth and create shareholder value.
Hostelworld shares were trading 1.7% higher in London at 120.00 pence per share on Wednesday morning.