Hostelworld Group PLC on Wednesday reported a rise in annual revenue driven by a boost in bookings and said it earnings beat market expectations.
Shares in Hostelworld rose 5.5% to 140.25 pence each in London on Wednesday morning.
The Dublin-based hostel booking company said 2023 revenue climbed 32% to €93.7 million from €69.7 million in 2022. It recorded net gross merchandise value of €619 million, also reflecting a 32% increase from €470.1 million the year prior.
Net bookings climbed 37% year-on-year to 6.5 million in 2023 from 4.8 million a year ago, while net bed-nights rose 30% to 22.7 million.
Adjusted earnings before interest, tax, depreciation and amortisation of around €18.3 million exceed the upper end of market guidance of a €17.5 million to €18.0 million range, Hostelworld said.
‘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,’ said Chief Executive Officer Gary Morrison.
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