Trading Statement

Hostelworld is pleased to provide an update on trading for the period 01 January 2023 to 31 December 2023.

Continued execution of our highly differentiated growth strategy has enabled us to capitalise on robust demand in our key markets and to grow market share, while reducing paid marketing investment to the low end of our guidance range.

Key highlights:

á Record net GMV1 and revenue2 of €619m (+32% year on year) and €93.7m (+32% year on year), respectively

á Net bookings totalled 6.5m (+37% year on year) and net bed-nights totalled 22.7m (+30% year on year), driven by strong ​growth across all regions

á Net average booking value of €14.36, (-4% year on year), driven by a greater proportion of Asian destination bookings, partially offset by bed price inflation

á Direct marketing as a percentage of revenue2 amounted to 50%, (-8% year on year) powered by our social strategy

á FY 2023 adjusted EBITDA of c. €18.3m exceeds the upper end of market guidance (€17.5m - €18.0m)

á On 31 December 2023 the Group had a closing cash position of €7.5m and a net debt3 position of €12.3m, reflecting a further €1.0m reduction in our drawn revolving credit facility from €3.0m to €2.0m

1 Net GMV is gross transaction value of bookings 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

Gary Morrison, Group Chief Executive Officer, commented:

"I am very pleased to report another strong year of strategic progress for Hostelworld, which has been reflected in our results. Over 2023 we grew market share, delivered record revenues and increased operating leverage through a combination of reduced marketing spend (as a percentage of net revenue) and continued operating cost discipline to deliver EBITDA which exceeds the upper end of our guidance range. In particular, I am also pleased to report our full year marketing costs as a percentage of net revenue fall from 51% in the first half of the year to 50% on a full year basis, which demonstrates the ability of our strategy to grow market share whilst reducing marketing costs.

These results coupled with the strong cash conversion characteristics of our business model and a new facility agreed with Allied Irish Bank in May 2023, have enabled to us to strengthen our balance sheet and reduce our interest costs. As of 31st December 2023 we have repaid €5.5M of the original €7.5M revolving credit facility drawn down in May, with interest on the balance now charged at 2.65% over EURIBOR.

Going into 2024, we are strongly positioned to deliver against our medium-term financial commitments. We have started the new year with strong momentum and I feel very confident that we will continue our track record of continued profitable growth and value creation for our shareholders."

The Group will report its full year results for the year ended 31 December 2023 on 21 March 2024.