Hostelworld profits tumble as Europeans opt to stay home for summer

(Sharecast News) - Hostelworld said the hot weather seen across Europe of late had encouraged people to forego travel and stay at home during the all-important period.Interim net revenues fell 9% to €42m, while underlying profits tumbled 24% to €9.8m.Earnings per share dropped from 10.82 euro cents to 7.97c.The hostel-focused online booking platform warned investors that unless something changes, it was likely to see bookings for the full year come in flat, reversing the 2% growth seen in the first half.Hostelworld also stated that World Cup bookings were softer than expected in the peak months of July and August.New chief executive Gary Morrison, who replaced longtime CEO Feargal Mooney back in May, said Hostelworld remained focused on cutting costs to offset the impact on its EBITDA - which fell 24% to €9.8m throughout the period.Hostelworld dropped its interim dividend to 4.8c from 5.2c.Elsewhere, Hostelworld announced that TJ Kelly would take over as its new chief financial officer from 21 November.As of 0910 BST, Hostelworld shares had slumped 9.08% to 265.50p.