Trading Statement

Hostelworld is pleased to provide an update on trading for the period 01 Jan 2024 to 31 Dec 2024.

Key highlights:

• Net bookings totalled 6.9m (+6% year on year), driven by record booking performances in Asia and Central America
• Net average booking value of €13.21, (-8% year on year), as a result of a shift in consumer demand towards lower cost destinations
• Net revenue1 totalled €92.0m (-1% year on year)
• Direct marketing as a percentage of revenue2 totalled 46% (down 4% from 50% in FY 2023), resulting in a net margin growth of +7% YoY
• FY 2024 adjusted EBITDA of c. €21.8m (+19% year on year) and an adjusted EBITDA margin of 24% (20% in FY 2023)
• Closing cash position of €8.2m and a net cash position of €2.0m, with all bank debt repaid in full

2 Gross revenue less cancellations

Gary Morrison, Group Chief Executive Officer, commented:

"We achieved a net bookings growth rate of 6% driven primarily by growth in bookings from UK and European travellers to lower cost destinations in Asia, especially in the first half of the year at +43% YoY and +31% on a full year basis. This growth was partially offset by weaker demand for higher cost destinations in Europe throughout the year.

These trends resulted in an 8% decrease in net average booking values year-on-year which reduced revenue growth for the year, as previously communicated to the market in our trading update on 15 October 2024. As we exited the year, booking values returned to growth driven primarily by bed price inflation in Asia.

Our app-based social strategy has continued to drive growth in the proportion of bookings made by Social Members (80% in FY 2024 vs 67% in FY 2023) and we saw good growth in App bookings (+16% YoY), contributing to a 7% YoY growth in net margin. Our continued focus on tight cost control has resulted in increased operating leverage, with a 19% increase in adjusted EBITDA year-on-year.

We retired our three-year debt facility two years ahead of schedule and returned to a net cash position in the third quarter of 2024, providing a solid foundation for our next phase of growth.

We will provide a detailed growth strategy and capital allocation update in the second quarter."

The Group will report its full year results for the year ended 31 December 2024 on 20 March 2025.