Hostelworld Regulatory News (HSW)

LEI:213800OC94PF2D675H41

Hostelworld Group plc ("Hostelworld" or the "Group")

Trading Update

Largest YTD revenue on record, full year Adjusted EBITDA guidance upgraded

Hostelworld is pleased to provide an update on trading up to 30 September 2023 ("YTD").

Key highlights:

· Record YTD Net GMV1 and revenue2 of ?496.4m (+38% year on year) and ?75.2m (+38% year on year), respectively

· Net bookings totalled 5.0m (+43% year on year), driven by continued strong booking growth across all regions, with Southern Europe, Asia and Oceania destinations remaining ahead of pre pandemic levels

· Net Average Booking Value of ?14.94, (-4% year on year), driven by a greater proportion of Asian destination bookings, partially offset by continued bed price inflation

· Direct marketing as a percentage of revenue2 amounted to 51%, (down 10% year on year) powered by our social strategy

· On 30 September 2023 the Group had a closing cash position of ?8.1m and a net debt3 position of ?13.4m; in part driven by a ?2.0m reduction in our revolving credit facility from ?5.0m to ?3.0m

· Interest rate on Allied Irish Banks plc debt facility reduced from 3.25% to 2.65% over EURIBOR, as ratio of Net Debt to adjusted EBITDA is now less than 1

1 Net GMV is gross transaction value of the booking less cancellations

2 Revenue is gross revenue less cancellations and excludes impact of deferred revenue

3 Net debt is cash less outstanding debt, including term loan, revolving credit facility and warehoused payroll taxes

Outlook:

Based on our record revenue performance YTD, we now expect adjusted EBITDA to be in the range of ?17.5m to ?18.0m for FY23 (up from ?16.5m to ?17.0m communicated at our AGM in May 2023). This guidance is provided subject to any deterioration in the macro-economic environment, air travel disruptions, or any other material external factors in the balance of year.

Gary Morrison, Group Chief Executive Officer, commented:

I am delighted that our strong trading performance has continued into Q3, resulting in record YTD revenue. In particular, I am pleased to report we continue to see growth in the proportion of bookings made by social members in Q3 (59% in September) and continued growth in year over year market share through the quarter. Collectively, these operational results are driving an improved EBITDA outlook for the year, and a further reduction in our net debt position and interest rates for the balance of the year.

Overall, the Board remains very confident in the capacity of our highly differentiated asset-light business model to deliver long-term profitable growth and create shareholder value."

For further information please contact:

Hostelworld Group plc Corporate@hostelworld.com

Gary Morrison, Chief Executive Officer

Caroline Sherry, Chief Financial Officer

David Brady, Head of Commercial Finance

Powerscourt hostelworld@powerscourt-group.com

Eavan Gannon / Nick Dibden Tel: +44 (0) 20 7250 1446

About Hostelworld Group

Hostelworld Group Plc is a ground-breaking social network powered OTA focused on the hostelling category, with a clear mission to help travellers find people to hang out with. Our mission statement is founded on the insight that the vast majority of travellers go hostelling as a means to meet other people; which we facilitate through a series of Social features on our platform that connect our travellers in hostels and cities based on their booking data. To date the strategy has been extraordinarily successful, generating significant word of mouth recommendations from our customers and strong endorsements from our Hostel partners.

Founded in 1999, Hostelworld is a well-known trusted brand with 250 employees across 11 countries; hostel partners in 170 countries; and a strong commitment to building a better world in all that we do. In particular, our focus in the last few years has been on improving the sustainability of hostelling industry, through our membership of the Global Sustainable Tourism Council (GSTC); our active involvement in the Global Tourism Plastics Initiative (GTPI); our partnerships with Bureau Veritas to establish emissions benchmarks for the hostelling industry; and our recent partnership with the South Pole to be a climate neutral company in 2021 and 2022.

Disclaimer

This announcement contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of Hostelworld. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Hostelworld's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of this announcement. Except as required by law, Hostelworld undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in this announcement to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made.