Last checked at 21 Jan 2016 07:00
Hostelworld Group plc
("Hostelworld" or the "Group")
Pre-Close Trading Update
Hostelworld, the world's leading hostel-focused online booking platform, today issues a pre-close trading update ahead of its preliminary results for the year ended 31 December 2015, which will be released on 5 April 2016.
Results for the full year to 31 December 2015 are anticipated to be in line with the Board's expectations.
The Group has continued to experience sustained growth in bookings for its flagship Hostelworld brand in H2 2015, with bookings up 21% compared with the same period in 2014 (+17% on a full year basis). The summer brand campaign performed well, and we are pleased with our progress in managing cost per click and cost per booking to drive a more efficient booking mix. Hostelworld also continued to grow its mobile business, with mobile (including tablet) representing over 40% of Hostelworld brand bookings for the year.
The increased focus on Hostelworld as the primary brand and the ongoing integration of the Hostelbookers technology platform has, as expected, resulted in a continued reduction in Hostelbookers bookings in the period. During January 2016 the Group successfully launched a newly rebranded and responsive Hostelbookers website. The new site includes the Elevate dynamic pricing functionality, will benefit from a larger set of properties, and is expected to slow the decline of Hostelbookers bookings over time.
Across all brands, the Group returned to overall bookings growth during H2 2015, up 2% (+1% on a full year basis).
The Group continues to enjoy strong cash conversion and the Board looks forward to announcing Hostelworld's first dividend as a public company in April, in line with the policy stated at the time of the Group's IPO.
Feargal Mooney, Chief Executive of Hostelworld, commented:
"We are pleased with the financial performance of the Group in 2015. Following the re-branding of the Hostelworld and Hostelbookers websites, the integration of the Group's technology platforms, the continuing advancement of our mobile offering and November 2015's successful IPO, we look forward to the current year and beyond with confidence. "
Contacts:
Hostelworld Group plc
Feargal Mooney, Chief Executive Officer
Tel: +353 (0) 1 498 0700
Weber Shandwick
Nick Oborne
Tom Jenkins
Tel: +44 (0) 20 7067 0000