Hostelworld Group PLC on Wednesday raised its full-year earnings guidance for 2023 amid strong bookings and a decrease in debt.

The Dublin-based hostel booking company said in the nine months to September 30, revenue climbed 38% to €75.2 million. Net bookings totalled 5.0 million, up 43% from the year before.

Hostelworld said this was driven by ‘continued strong bookings’ across all regions, with Southern Europe, Asia and Oceania destinations remaining ahead of pre-pandemic levels.

At September 30, closing cash position was €8.1 million and net debt position was €13.4 million, partly driven by a €2.0 million reduction in its revolving credit facility to €3.0 million from €5.0 million, Hostelworld said.

As a result, the booking platform has raised its full year adjusted earnings before interest, tax, depreciation and amortisation guidance to be in the range of €17.5 million and €18.0 million, from €16.5 million to €17.0 million previously. Adjusted Ebitda in 2022 was €1.3 million.

Chief Executive Officer Gary Morrison said: ‘I am delighted that our strong trading performance has continued into [the third quarter], resulting in record [year-to-date] revenue.

‘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.’

Shares in Hostelworld were trading 1.7% higher at 120.00 pence each in London on Wednesday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.