Trading Update

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."