Trading Update

Reaffirming FY adjusted EBITDA guidance in line with expectations.

Net cash positive balance sheet

Hostelworld is pleased to provide an update on trading up to 30 September 2024 ("YTD").

Key highlights:

• Net bookings of 5.4m (+7% YoY) driven by record performances in Asia and Central America
• Net average booking value of €13.54 (-9% YoY) driven by a greater proportion of Asian destination bookings and a slight increase in the proportion of solo customers, consistent with the trends outlined at interims
• Net revenue1 of €72.3m (-2% YoY) reflecting the drivers above
• Direct marketing as a percentage of revenue2 totalled 46%, down 5% from 51% in YTD '23
• Proportion of bookings from Social Members increased to 80% (67% in YTD '23)
• Operating costs3 of €18.7m, (-3% YoY), 26% of net revenue (0% YoY)
• YTD adjusted EBITDA of €17.8m, (+28% YoY) with adjusted EBITDA margin 25% (19% in YTD '23)
• Closing cash position of €7.8m and a net cash position of €0.9m, with all bank debt repaid in full

The Group reiterates a FY 2024 adjusted EBITDA guidance in line with market consensus4. We are actively reviewing our capital allocation policy and will provide an update in conjunction with our full-year results.

• Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue
• Operating costs exclude paid marketing costs, credit card fees, exceptional costs and share option charges
• Company compiled market consensus FY 2024 adjusted EBITDA is €21.6M as of 15 October 2024

Gary Morrison, Group Chief Executive Officer, commented:

"I am pleased with our performance year to date, which has been driven by strong consumer demand from Europe, the UK and North America to low-cost destinations in Asia and Central America. The strong cash generative nature of this business has seen us return the balance sheet to a net cash position in quarter three of 2024, as previously guided.

In addition to our strong financial performance, I am equally pleased with the continued impressive performance of our Social Network, as a result of which, marketing expense as a proportion of revenue has improved significantly YoY. This has resulted in a net margin growth of 10% and combined with our continued focus on cost, has delivered a 28% increase in adjusted EBITDA YoY.

Looking ahead, I remain very confident in our business model and our continued success in building a platform for long-term profitable growth."