TIDMHSW
RNS Number : 2246I
Hostelworld Group PLC
11 August 2021
Hostelworld Group plc
("Hostelworld" or the "Group" or the "Company")
Interim Results 2021
H1 2021 in line with expectations; modest increase in bookings
in recent weeks in line with the easing of travel restrictions
11 August 2021: Hostelworld, a leading global Online Travel
Agent (OTA) focused on the hostel market, is pleased to announce
its interim results for the period ended 30 June 2021
Financial highlights(1)
-- Net revenue of EUR2.9m in H1 2021, a decline of 76% (H1 2020:
EUR12.0m). On a quarterly basis, net revenue in Q1 2021 was EUR0.9m
(Q1 2020: EUR12.0m) and in Q2 2021 EUR2.0m (Q2 2020: EUR0.0m)
-- Total Group net bookings decline of 73% (H1 2020: 67%). Net
booking volume decline from 1.1m to 0.3m, with cancellations
EUR0.8m (H1 2020: EUR5.4m). On a quarterly basis, net bookings in
Q1 2021 were 0.1m (Q1 2020: 1.1m) and in Q2 2021 0.2m (Q2 2020:
0.0m)
-- Net Average Booking Value ("ABV") of EUR11.72 (H1 2020:
EUR9.45), reflecting favourable geographic mix, and higher number
of bed nights per booking
-- Total H1 2021 marketing costs of EUR2.4m were 64% of net
revenue (excluding deferred revenue), (H1 2020: EUR7.5m, 76%)
-- Administrative expenses reduced by 43% to EUR13.5m in H1 2021
(2020: EUR23.7m)
-- Adjusted EBITDA loss of EUR9.7m (H1 2020: EUR8.3m loss)
-- Basic loss per share of 17.50 EUR cent (H1 2020 basic loss
per share: 18.60 EUR cent)(2)
Balance sheet and cash flow:
-- Closing cash position EUR33.7m (H1 2020: EUR32.9m)
-- Adjusted free cash flow (101%), (H1 2020: (33%))
-- Customer deposits related to bookings made under the free cancellation policy amounted to EUR1.1m (H1 2020:
EUR0.6m)
-- Cash dividends for 2021 remain suspended
Gary Morrison, Chief Executive Officer, commented:
" During the first half of 2021 the Covid-19 pandemic has
weighed heavily on the global travel industry. Although global
vaccination programmes have continued at pace, new strains of the
virus have spread rapidly around the world leading to frequent and
swift changes to travel restrictions.
Despite the challenging macro environment, we are starting to
see customer demand returning in geographies where travel
restrictions have been eased. In the US we have seen a recovery in
domestic demand during Q1 and Q2, followed by a strong recovery in
several Southern European markets in Q2.
As the recovery has progressed we are also seeing the economic
benefits of the initiatives we have already taken to strengthen our
core platform, driven by improvements in inventory competitiveness,
user experience enhancements and improved marketing
capabilities.
As we look ahead, I am very pleased with the positive customer
feedback we have received to our Meet The World Ô growth strategy
tests in the first half of the year which builds on our Core
business strengths to provide our customers with a wider range of
travel products and social features to help them meet other
likeminded travellers. Finally, our liquidity position remains very
strong, driven by our relentless focus on cost control coupled with
the successful term loan facility transaction in February 2021.
In summary, while the short-term outlook for the travel industry
remains extremely challenging, I remain confident that Hostelworld
will emerge from the COVID-19 crisis stronger than before. I would
like to take this opportunity to thank all of our employees for
their continued hard work and commitment, and our customers and
shareholders for the support they have shown through these
challenging times."
Trading update and outlook:
Similar to the initial recovery observed in Q3 2020, we are
seeing swift increases in demand in those destinations where travel
restrictions have eased. The recovery started with domestic demand
in the US and Australia followed by stronger growth into several
European destinations throughout Q2. Overall, we continue to expect
the pace to mirror changes in individual markets over the coming
months, both positive and negative. Outside of these geographies,
demand continues to remain very depressed.
As the recovery has progressed we have seen several factors
impact our trading economics versus the first half of 2019. In
particular, average net booking values have steadily recovered to
near H1 2019 levels driven by a favourable geographic mix and
longer length of stay bookings, which has been partially offset by
underlying bed price deflation, higher cancellation rates (in part
driven by a higher proportion of free cancellation bookings) and a
reduction in blended commission rates (driven by the removal of
Elevate in 2020). Marketing costs per net booking however have
remained elevated versus H1 2019 driven by lower conversion rates
and higher cancellation rates (in part driven by a higher
proportion of free cancellation bookings). Consequently, marketing
costs as a percentage of net revenue remain significantly higher
than H1 2019 levels, although we expect these to gradually
normalise as normal travel patterns resume.
On the supply side, despite the continuing depressed demand
during H1 2021 we have only seen a very modest reduction in the
number of hostels on our platform compared to levels at the end of
2020, driven by continual sign ups to our platform. In addition, I
am also encouraged to see our customers are continuing to book
dorms in the majority of cases, with only a modest shift towards
private rooms compared to 2019 levels.
Overall while bookings continue to trend well below normalised
patterns, we expect the recovery to improve further during the
second half of the year, albeit that we expect net bookings will
remain at significantly reduced levels when compared to 2019. In
particular we expect the pace of the recovery to mirror changes in
individual markets over the coming months, both positive and
negative.
Whilst significant uncertainty remains, and the recovery is
likely to take some time, the Board remains confident in the
resilience and flexibility of the Group's business model, and its
ability to execute on its growth strategy and build market share as
demand recovers. In parallel, the Board will continue to evaluate
internal and external opportunities that will deliver value for
shareholders, in particular the significant potential to enhance
future growth through our Meet the World Ô growth strategy.
In light of continued market uncertainty, the Group is not in a
position to provide full year guidance until such time as the
overall impact of COVID-19 on the Group becomes clearer.
Analyst Presentation
A presentation will be made to analysts today at 9.00am, a copy
of which will be available on our Group website:
http://www.hostelworldgroup.com . If you would like to dial into
the presentation, please contact Powerscourt on the contact details
provided below.
For further information please contact:
Hostelworld Group plc Corporate@hostelworld.com
Gary Morrison Chief Executive Officer
Caroline Sherry Chief Financial
Officer
Rudolf O'Kane Head of Commercial
Finance
Powerscourt hostelworld@powerscourt-group.com
Lisa Kavanagh/ Eavan Gannon +44 (0) 20 7250 1446
About Hostelworld Group
Hostelworld Group, the global hostel-focussed online booking
platform, inspires passionate travellers to Meet The World Ô , and
come back with life-changing stories to tell. Our customers are not
your average tourists; they crave cultural connection and unique
experiences that we make possible by providing an unbeatable
selection of hostels in unmissable locations - all in the palm of
their hand.
It is the social nature and community feel of hostels and their
environment that enable travellers to embrace journeys of
discovery, adventure and meaning. We have over 20 years'
experience, with more than 13.5 million reviews across more than
16,700 hostels in 183 countries, making our brand the leading
online hub for social travel. Our website operates in 19 different
languages and our mobile app in 13 languages.
Cautionary statements
This Announcement may contain, and the Company may make verbal
statements containing, "forward-looking statements" with respect to
certain of the Company's plans and its current goals and
expectations relating to its future financial condition,
performance, strategic initiatives, objectives and results.
Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "seek", "may", "could", "outlook" or other words
of similar meaning. By their nature, all forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances which are beyond the control of the Company. As a
result, the actual future financial condition, performance and
results of the Company may differ materially from the plans, goals
and expectations set forth in any forward-looking statements. Any
forward-looking statements made in this Announcement by or on
behalf of the Company speak only as of the date they are made.
The information contained in this Announcement is subject to
change without notice and except as required by applicable law or
regulation (including to meet the requirements of the Listing
Rules, the Euronext Dublin Listing Rules, MAR, the Financial
Services and Markets Act 2000, Euronext Dublin and/or the Central
Bank of Ireland), the Company expressly disclaims any obligation or
undertaking to publish any updates or revisions to any
forward-looking statements contained in this Announcement to
reflect any changes in the Company's expectations with regard
thereto or any changes in events, conditions or circumstances on
which any such statements are based. Statements contained in this
Announcement regarding past trends or activities should not be
taken as representation that such trends or activities will
continue in the future. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
Announcement.
No statement in this Announcement is intended to be a profit
forecast and no statement in this Announcement should be
interpreted to mean that earnings per share of the Company for the
current or future years would necessarily match or exceed the
historical published earnings per share of the Company.
Interim Management Report
To the members of Hostelworld Group plc
Cautionary statement
This Interim Management Report (IMR) has been prepared to
provide additional information to shareholders to assess the
Group's strategies and the potential for those strategies to
succeed. The IMR should not be relied on by any other party or for
any other purpose.
The IMR contains certain forward-looking statements. These
statements are made by the directors in good faith based on the
information available to them up to the time of their approval of
this report but such statements should be treated with caution due
to the inherent uncertainties, including both economic and business
risk factors, underlying any such forward-looking information.
This interim management report has been prepared for the Group
as a whole and therefore gives greater emphasis to those matters
which are significant to Hostelworld Group plc and its subsidiary
undertakings when viewed as a whole.
Chief Executive's Review
H1 review and operational update
Trading in the first half of 2021 remained extremely
challenging, with the continued effects of the COVID-19 pandemic
weighing heavily on Hostelworld Group and the wider travel
industry. In particular, Q1 remained very depressed, continuing the
trends seen in Q4 2020. During Q2 we saw a modest pickup in North
and Central America, followed by a strong recovery in travel to
Southern European destinations as travel restrictions began to
ease. The situation however remains very volatile, with demand
patterns mirroring frequent and swift changes to government
guidelines, both positive and negative.
In the light of the challenging trading environment and the
continued uncertainty, our key priorities have remained unchanged:
to support our employees, customers and hostel partners; to
maintain the strength of our balance sheet; and to execute on our
growth strategy .
Supporting our employees, customers and hostel partners
We have continued to support our hostel partners through
conducting joint surveys to source relevant industry data and
providing supporting information for government bodies. We have
held more than 30 webinars over the last six months to help hostel
owners optimise their businesses to cater for current demand
patterns and customer needs. During the year we also continued with
our hostel industry recognition programme, the HOSCARs, to
celebrate the world's most extraordinary hostels. This year's
awards acknowledged the incredible work hostels have been doing in
their communities over the last 12 months and seek to support the
industry during the pandemic.
Similarly, we have been supporting our employees throughout the
pandemic, and recently launched more programmes to facilitate agile
working policies, working from abroad policy and paid wellness and
parental leave days help to promote flexibility and work-life
balance when working from home.
Strengthening our balance sheet
During the first half of the year, we took further steps to
strengthen our liquidity position through a combination of ongoing
operating cost reductions and the successful negotiation of a new
five year EUR30M term loan facility which we drew down in February
this year. These actions ensure we have sufficient reserves even
with a prolonged period of depressed demand.
Executing our growth strategy
As outlined at the time of our preliminary results presentation
in March 2021, our strategy for FY 2021 and beyond builds on the
roadmap for growth programme and is focused around three strategic
pillars. These pillars will enable us to accelerate the Group's
growth when normal travel patterns resume.
1. Improving the competitiveness of our core OTA business
Our first strategic pillar is focused on continuing to improve
the competitiveness of our Core OTA business (Hostelworld), through
continued improvements to inventory competitiveness, user
experience enhancements, stronger marketing capabilities and
strengthening our position in the hostel software market. This
pillar essentially builds on the initial roadmap for growth
programme launched in late 2018, and I am confident that our core
business is now materially stronger than Q4 2019 when we had
returned the business to growth.
Following our strategic investments in Counter App Limited
("Counter"), a low cost property management system designed for the
hostel market, and Goki PTY Limited ("Goki"), an innovate digital
lock and smartphone app based key system in 2019, I am pleased to
report we have now successfully transitioned more than 85% of all
Backpack Online customers ("BPO", Hostelworld's legacy PMS) to
Counter. Counter also continues to add more hostels to its platform
at an impressive rate.
Goki has also seen increased interest in their products,
especially from the hotel sector, as travel has resumed and the
demand for contactless solutions has grown. The Goki management
team expect this trend to continue, with hotels accounting for the
majority of sales over the coming years. As this sits outside the
scope of Hostelworld's business, we have restructured our
relationship with Goki; reducing our shareholding from 49% to 31.5%
and removing our right to acquire the remaining shares of the
company we do not own in 2023.
2. Meet the World growth strategy Ô
Our second strategic pillar is focused on executing the Meet The
World Ô growth strategy first outlined in our full year results
presentation in March 2020. This strategy will deliver growth by
providing a broader catalogue of relevant experiences beyond hostel
accommodation to our core business customer base; coupled with the
addition of social features to enable our customers to explore the
world together with other likeminded travellers. Overall, I am
pleased with the progress we have made in the last six months, with
several experiments confirming our customer's strong desire for
these types of travel products and social features.
3. Platform modernisation
Our third strategic pillar relates to the ongoing modernisation
of our underlying platform to enable us to support faster execution
across both our core Hostelworld platform and Meet The World Ô
growth strategies; as well as reducing overall development and
technology costs in the medium term. To that end, earlier this year
we embarked on an ambitious plan to migrate our entire company to
the cloud; and I am pleased to report that this will be complete by
the end of August 2021.
Summary
Overall, w hile the short to mid-term outlook for the travel
industry remains challenging and uncertain, we continue to expect
the pace of recovery to be driven by changes in travel guidance in
individual markets, which we hope to see accelerated with the
continued rollout of vaccination programmes worldwide.
Whilst this recovery is likely to take some time and the
consumer sentiment will continue to be uncertain, the Board remains
confident in the resilience and flexibility of our business model,
and that we are well positioned to execute on our strategy.
As demand recovers, the Board will continue to evaluate internal
and external opportunities that will deliver value for
shareholders, in particular the significant potential to enhance
future growth from our Meet The World Ô strategy, which will add a
broader catalogue of experiential travel products beyond hostel
accommodation to our platform, and create opportunities to connect
like-minded travellers with each other via social features on our
platform.
Gary Morrison
Chief Executive
11 August 2021
Interim Management Report
Financial Review
Highlights:
-- Group net bookings decline of 73% (H1 2020: 67% decline)
-- Net Average Booking Value ("ABV") of EUR11.72, a 24% increase
versus H1 2020 (EUR9.45)
-- Revenue of EUR2.9m, a 76% decline compared to H1 2020 (H1
2020: -69%)
-- Total marketing spend of EUR2.4m, a 68% reduction on H1 2020
(H1 2020: EUR7.5m)
-- Total administration costs of EUR13.5m, a 43% reduction on H1
2020 (H1 2020: EUR23.7m)
-- Exceptional items totalled EUR0.6m, (H1 2020: EUR3.0m)
-- Adjusted EBITDA loss of EUR9.7m, (H1 2020: EUR8.3m loss)
-- Adjusted free cash flow of (101%) (H1 2020: (33%))
-- Basic loss per share of 17.50 EUR cent (H1 2020: basic loss
per share 18.60 EUR cent)
Revenue and operating loss:
Revenue for the period was EUR2.9m a decline of 76% compared to
H1 2020.
The Group's net booking volumes declined by 73% in H1 2021 (H1
2020: 67% decline). Net Average Booking Value ("ABV"), the average
value paid by a customer for a net booking, increased by 24% during
the first six months of the year (H1 2020: 24% decline) primarily
reflecting favourable geographic mix, and higher number of bed
nights per booking.
At 30 June 2021, we held EUR3.0m of customer deposits relating
to bookings made under the free cancellation policy (H1 2020:
EUR3.3m), of this EUR1.9m relates to bookings already cancelled (H1
2020: EUR2.7m). Deferred revenue increased by EUR0.9m in H1 2021
(H1 2020: decrease of EUR2.2m).
Throughout the pandemic the Group has proactively managed
marketing costs, matching marketing spend to sales volumes. Total
marketing spend was EUR2.4m in H1 2021 (H1 2020: EUR7.5m). Group
operating loss amounted to EUR19.1m (H1 2020: EUR18.6m). Adjusted
EBITDA loss of EUR9.7m, a decline of EUR1.4m from H1 2020. We
continue to tightly control our operating costs. These measures
resulted in a EUR10.2m reduction in total administration costs to
EUR13.5m in H1 2021 compared to the same period last year (H1 2020:
EUR23.7m). Administration expenses, excluding the impact of
exceptional cost items, were EUR12.9m (H1 2020: EUR20.7m).
Exceptional items
Exceptional items are identified due to their nature or
materiality to help the reader form a better view of overall and
adjusted trading. The Group incurred EUR0.6m of exceptional cost
items in H1 2021 relating to costs associated with a Group-wide
staff restructuring (H1 2020: EUR3.0m).
Share based payment
During 2021 the Company granted a Restricted Share Award to
selected employees, including the executive directors and members
of the management team under which 2,456,763 nil cost options were
granted.
The share-based payment expense of EUR0.4m (H1 2020: EUR0.3m)
reflects the share-based payment charge arising on the issuance of
options in accordance with the Group's Restricted Share Award,
Long-Term Incentive Plan ("LTIP") and Save as you Earn ("SAYE")
plan.
Earnings per share
Basic loss per share for the Group was 17.50 EUR cent (H1 2020
basic loss per share: 18.60 EUR cent).
The H1 2020 earnings per share figures have been restated to
incorporate the 1,636,252 new Hostelworld Group ordinary shares
that were issued in September 2020. The weighted average number of
shares in issue during the period was adjusted to include these
bonus shares as if they were issued 1 January 2020. The total
number of shares issued at 30 June 2021 was 116.3m.
Adjusted loss per share was 12.0 EUR cent per share (H1 2020
loss per share: 10.9 EUR cent per share). The weighted average
number of shares in the period was 116.3m.
Net debt and financing
The Group commenced the year with two facilities in place.
Firstly a 'Prompt Pay' which was a short-term invoice financing
facility with Allied Irish Banks PLC. On 26 January 2021 the amount
owing on the facility was repaid in full. Secondly a three-year
revolving credit facility for EUR7m with the Governor and Company
of the Bank of Ireland to assist with the investing and development
needs of the business. No amounts were drawn down on this facility.
On 10 February 2021 the Group signed a deed of release exiting this
undrawn facility.
In February 2021 the Group signed a EUR30m five-year term loan
facility with certain investment funds and accounts of HPS
Investment Partners LLC or subsidiaries or affiliates thereof. An
amount of EUR28.8m was drawn down on 23 February 2021.
The facility is single drawdown and bears interest at a margin
of 9.0% per annum over EURIBOR (with a EURIBOR floor of 0.25% per
annum). The facility agreement includes minimum liquidity covenants
and financial covenants relating to net leverage ratios and EBITDA
targets from 2023. Had we been required to test our minimum
liquidity covenants at 30 June 2021, the Group would have been
found to be in compliance.
In connection with the facility, Hostelworld has issued warrants
over 3,315,153 ordinary shares of EUR0.01 each in the capital of
Hostelworld (equivalent to 2.85% of Hostelworld's current issued
share capital) to the lender. The warrants may be exercised at any
time during the term of the loan and for a twelve-month period
following its scheduled termination at an exercise price of EUR0.01
per ordinary share. Shares issued will be the same class and carry
the same rights as existing shares. No warrants have been exercised
at the date of this report.
Interest
The Group incurred EUR1.4m of finance costs in H1 2021 (H1 2020:
EUR0.1m). Increase in interest costs period on period relate to
interest costs recognised for the HPS term loan facility.
Taxation
The Group corporation tax charge of EUR0.1m (2020: EUR0.3m
credit) is accrued based on the Group's outlook on the full year
results. The Group has taken the estimated impact of COVID-19 on
the full year performance into consideration in determining the
effective tax rate for the half year ended 30 June 2021.
The Group has availed of the Irish Revenue tax warehousing
scheme and deferred payment on all Irish employer taxes to 30 June
2022. We continue to monitor and comply with the appropriate
Revenue guidelines applicable to this scheme.
Adjusted free cash flow
There was an increase in adjusted free cash flow from (33%) in
H1 2020 to (101%) in H1 2021. Total cash at 30 June 2021 was
EUR33.7m (H1 2020: EUR32.9m), of which EUR3.0m are customer
deposits related to bookings made under the free cancellation
policy (H1 2020: EUR3.3m) and EUR28.8m relating to the HPS term
loan facility (2020: "prompt pay" facility EUR3.5m). There were no
other borrowings at 30 June 2021 (2020: EURnil).
Dividend
The Board does not expect to pay a cash dividend under its
current policy in respect of the 2021 financial year. Any payment
of cash dividends will be subject to the Group generating adjusted
profit after tax, the Group's cash position, any restrictions in
the Group's banking facilities and subject to compliance with
Companies Act 2006 requirements regarding ensuring sufficiency of
distributable reserves at the time of paying the dividend.
Principal risks and uncertainties
There are a number of potential risks and uncertainties which
could have a material impact on future Group performance and could
cause actual results to differ materially from expected and
historical results. While the Board considers the risks and
uncertainties described in detail in the Annual Report and
Financial Statements for the year ended 31 December 2020, issued on
23 March 2021, to remain applicable, the Board has also considered
three additional risk factors, relating to 1. Cyber security
(covered within data security in the prior year), 2. Reliance on
third parties and 3. IT platforms and technological innovation. A
description of the risks and uncertainties are set out on the next
page.
Gary Morrison
Chief Executive Officer
11 August 2021
Interim Management Report
Principal risks and uncertainties
The principal risks and uncertainties faced by the Group are
reported annually within the Annual Report and Financial Statements
for the year ended 31 December 2020, issued on 23 March 2021. In H1
2021 there was a full review completed of the risk register. Three
new risks were deemed significant in the current year - 1. Cyber
security (covered within data security in the prior year); 2.
Reliance on third parties and 3. IT platforms and technological
innovation. No emerging risks have been identified.
Following the completion of the transition period on 31 December
2020 we do not consider the risk of Brexit to be significant to
warrant disclosure. Equally, following the completion of our loan
raise in Q1 2021 we have also amended the risk rating associated
with "Capital structure." Risks associated with our term loan
facility are included in "Going concern and working capital
management."
T he principal risks and uncertainties which are applicable for
the second half of the year are summarised below.
Material risks
-- Macro-economic conditions
-- Macro-economic conditions are outside of our control but can
have significant consequences on the willingness or the ability for
our customers to travel. They include slowing or negative economic
growth, rising unemployment rates, weakening currencies, higher
taxes or tariffs, unusual or extreme weather, travel related health
concerns including pandemics and epidemics.
-- The COVID-19 pandemic and the resulting measures, including
travel restrictions, implemented by governments around the world to
reduce the spread of COVID-19 has resulted in an unprecedented
decline in consumer spending, travel and related activities. The
pandemic has adversely affected our business and the outlook for
the future remains uncertain at present. We will be impacted by
developments such as the resurgence of the COVID-19 virus, success
of vaccines and the duration and severity of travel bans and
lockdowns. It is not yet known when international travel will
return to normal levels. We are reforecasting demand on a quarterly
basis and monitoring closely demand patterns within all our global
markets.
-- Impact of terrorism threat on leisure travel
-- The threat of terrorist attacks in cities and on flights may
reduce the appetite of the leisure traveller to certain
geographies, resulting in declining revenues.
-- Going concern and working capital management
-- Our ability to access liquidity is constrained by our trading
volumes in a COVID-19 environment and the availability of funding.
With low revenue volumes there is a risk that the Group will not
have the financial resources to pay its liabilities on a day to day
basis. This also directly impacts our ability to invest and grow
which is constrained by our financial resources.
-- Our term loan facility contains repayment obligations and
covenants, reporting to the involved brokers and lenders and
requires constant monitoring of the Group's leverage position and
liquidity metrics. Without a return to growth it is not certain
that the Group can meet the minimum liquidity covenants set out
under the terms of the term loan facility agreement.
-- Reliance on third parties
-- We rely on hostel accommodation providers to provide us with
our inventory. Any limitations by accommodation providers on
inventory supplied or closures resulting from COVID-19 will
directly impact our business and results of operations.
-- We rely on third party providers to provide some key services
to the Group including processing payments and cloud storage. Any
interruption in service from any of these providers may lead to a
loss in revenue, loss in site and app functionality, increased
input from customer services and engineer time and ultimately if we
were to experience multiple failures we may damage our reputation
and brand.
-- Competition
-- The risks posed by competition where we compete for supply of
hostel inventory and customers could adversely impact our market
share and future growth of the business. Our competition may have
more resources than we do which may enable them to compete more
effectively.
-- Search engine algorithms
-- We rely significantly on practices such as Search Engine
Optimisation ("SEO") and Search Engine Marketing ("SEM") to improve
our visibility in relevant search results. Search engines
frequently update and change the logic that determines the
placement and display of results. As these algorithms become more
sophisticated, we risk being significantly behind in our marketing
strategy and unable to be competitive in the current
environment.
-- Our costs to improve or maintain our placement in search
results can increase which directly impacts our results and
margins.
-- Brand
-- Hostelworld is the world's leading OTA focused on the hostel
market. We rely on the strength of our brand in the market to
attract customers to our platform and to secure bookings. Consumer
trust and confidence in our brand is therefore essential to ongoing
revenue stability and growth. Negative publicity could impact brand
perception and consumer loyalty and ultimately revenue.
-- Cyber security
-- This risk was historically reported within data security but
is considered a principal risk, by itself, for the remaining six
months of the year. The Group, similar to other organisations is
susceptible to cyber-attacks which could compromise the integrity
of our systems and the security of our data. The publicity
generated by a breach could negatively affect a customer
willingness to provide personal data or make bookings with us.
-- Data security
-- The security of the confidential business information we
generate when engaging in e-commerce and the personal data we
capture from customers and employees is essential to maintaining
consumer and travel service provider confidence in our services. As
on online platform, Hostelworld is constantly exposed to cyber
security-related threats in the form of internal and external
attacks or disruption on our systems or those of our third-party
suppliers.
-- Regulation
-- Hostelworld's business is global and highly regulated and is
exposed to issues such as competition, licensing of local
accommodation and experiences, language usage, web-based trading,
consumer compliance, tax, intellectual property, trademarks, data
protection and information security and commercial disputes in
multiple jurisdictions. Regulatory and legal requirements and
uncertainties around these issues could subject the Group to
business constraints, increased regulatory and compliance costs and
other complexities which may otherwise harm our business.
-- Tax
-- Due to the global nature of our business, tax authorities in
other jurisdictions may consider that certain taxes are due in
their jurisdiction. If those tax authorities take a different view
than the Group as to the basis on which the Group is subject to
tax, it could result in the Group having to account for tax that it
currently does not collect or pay.
-- Certain countries have taken steps to introduce a digital
services tax to address the issue of multinational businesses
carrying on business in their jurisdiction without a physical
presence and therefore generally not subject to income tax in those
jurisdictions. These digital services taxes are calculated as a
percentage of revenue rather than income or profits. We are
currently monitoring the introduction of the digital services
taxes, and its impact on our Group.
-- Business continuity
-- Failure in our IT systems or those of which we rely on such
as third party hosted services could disrupt availability of our
booking engines and payments platforms, or availability of
administrative services at our office locations, which could have
an adverse impact to our customer service.
-- IT platforms and technological innovation
-- Over recent years the ever-increasing pace of change of new
technology, new infrastructure and new software offerings have
changed how customer's research, purchase and experience
travel.
-- Unless we continue to stay abreast of technology innovation
and change, we risk becoming irrelevant to the modern customer.
Technology evolves rapidly, and updates can become quickly
obsolete.
-- People
-- The Group is dependent on the ability to attract, retain and
develop creative, committed and skilled employees so as to achieve
its strategic objectives.
-- Due to the impact of the COVID-19 pandemic, the Group took
actions to reduce headcount in 2020. The Group has also undertaken
organisational change programmes in the last 12 months.
Implementation of these restructuring actions presents several
significant risks, including the potential negative impact on
employee morale and productivity, increased attrition, difficulty
retaining valuable key employees, adverse impact on our culture,
weakening of employer brand, and resource constraints; any of which
could adversely impact our business and reputation.
-- Climate change
-- Climate change and sustainability came into sharp focus in
2019 and has further evolved as an area of heightened concern with
consumers and stakeholders.
-- As an industry leader, we have a responsibility to take the
lead on ensuring that when we empower our customers to "Meet the
World", that this experience is done with respect, humility and
awareness for the world's people, animals, communities and the
environment.
RESPONSIBILITY STATEMENT
Each of the Directors of Hostelworld Group plc (as listed on
page 62 and page 63 of the Annual Report and Financial Statements
for the year ended 31 December 2020, issued on 23 March 2021)
confirm that, to the best of each person's knowledge and belief
1. The condensed set of Group financial statements has been
prepared in accordance with United Kingdom adopted International
Accounting Standard 34 'Interim Financial Reporting';
2. The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
3. The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board
Gary Morrison
Chief Executive Officer
11 August 2021
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 30 JUNE 2021
Six months Six months Year
ended ended ended
30 June 30 June 31
2021 2020 December
2020
EUR'000 EUR'000 EUR'000
------ ------------ ------------ -----------
Notes (Unaudited) (Unaudited) (Audited)
------ ------------ ------------ -----------
Revenue 3 2,891 12,034 15,364
------ ------------ ------------ -----------
Administrative expenses 4 (13,531) (23,670) (36,119)
------ ------------ ------------ -----------
Depreciation and amortisation 4 (8,447) (7,001) (14,132)
------ ------------ ------------ -----------
Impairment of intangible
assets 4 - - (14,996)
------ ------------ ------------ -----------
Operating loss (19,087) (18,637) (49,883)
------ ------------ ------------ -----------
Finance income - 8 8
------ ------------ ------------ -----------
Finance costs (1,441) (111) (246)
------ ------------ ------------ -----------
Share of result of associate (170) (100) (374)
------ ------------ ------------ -----------
Loss before taxation (20,698) (18,840) (50,495)
------ ------------ ------------ -----------
Taxation 5 341 762 1,638
------ ------------ ------------ -----------
Loss for the period attributed
to the equity owners of
the parent company (20,357) (18,078) (48,857)
------ ------------ ------------ -----------
Basic and diluted loss
per share (EUR cent) 6 (17.50) (18.60) (45.68)
------ ------------ ------------ -----------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2021
Six months ended Six months ended Year
30 June 2021 30 June 2020 ended 31
December 2020
EUR'000 EUR'000 EUR'000
----------------- ----------------- ---------------
(Unaudited) (Unaudited) (Audited)
----------------- ----------------- ---------------
Loss for the period (20,357) (18,078) (48,857)
----------------- ----------------- ---------------
Items that may be reclassified subsequently to profit or
loss:
----------------- ----------------- ---------------
Exchange differences on translation of foreign operations 8 - (7)
----------------- ----------------- ---------------
Total comprehensive loss for the period attributable to
equity owners of the parent company (20,349) (18,078) (48,864)
----------------- ----------------- ---------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
30 June 30 June 31 December 2020
2021 2020
EUR'000 EUR'000 EUR'000
------ ------------ --------------- -----------------
Notes (Unaudited) (Unaudited) (Audited)
------ ------------ --------------- -----------------
Non-current assets
------ ------------ --------------- -----------------
Intangible assets 7 79,719 105,626 86,252
------ ------------ --------------- -----------------
Property, plant and equipment 8 3,447 5,703 4,480
------ ------------ --------------- -----------------
Deferred tax assets 7,999 7,162 7,596
------ ------------ --------------- -----------------
Investment in associate 2,179 2,623 2,349
------ ------------ --------------- -----------------
93,344 121,114 100,677
------ ------------ --------------- -----------------
Current assets
------ ------------ --------------- -----------------
Trade and other receivables 9 1,949 2,306 1,681
------ ------------ --------------- -----------------
Cash and cash equivalents 33,702 32,908 18,189
------ ------------ --------------- -----------------
Corporation tax 34 116 54
------ ------------ --------------- -----------------
35,685 35,330 19,924
------ ------------ --------------- -----------------
Total assets 129,029 156,444 120,601
------ ------------ --------------- -----------------
Issued capital and reserves attributable to equity
owners of the parent
------ ------------ --------------- -----------------
Share capital 10 1,163 1,147 1,163
------ ------------ --------------- -----------------
Share premium 10 14,328 14,344 14,328
------ ------------ --------------- -----------------
Foreign currency translation reserve 16 15 8
------ ------------ --------------- -----------------
Share based payment reserve 1,580 1,091 1,210
------ ------------ --------------- -----------------
Other reserves 13 3,073 - -
------ ------------ --------------- -----------------
Retained earnings 60,799 111,935 81,156
------ ------------ --------------- -----------------
Total equity attributable to equity holders of the
parent company 80,959 128,532 97,865
------ ------------ --------------- -----------------
Non-current liabilities
------ ------------ --------------- -----------------
Lease liabilities 12 2,018 3,571 2,492
------ ------------ --------------- -----------------
Borrowings 13 26,200 - -
------ ------------ --------------- -----------------
Deferred tax liabilities - 112 -
------ ------------ --------------- -----------------
Deferred consideration - 882 -
------ ------------ --------------- -----------------
28,218 4,565 2,492
------ ------------ --------------- -----------------
Current liabilities
------ ------------ --------------- -----------------
Trade and other payables 11 18,113 18,046 17,036
------ ------------ --------------- -----------------
Borrowings 13 - 3,454 1,164
------ ------------ --------------- -----------------
Lease liabilities 12 1,446 1,847 1,803
------ ------------ --------------- -----------------
Corporation tax 293 - 241
------ ------------ --------------- -----------------
19,852 23,347 20,244
------ ------------ --------------- -----------------
Total liabilities 48,070 27,912 22,736
------ ------------ --------------- -----------------
Total equity and liabilities 129,029 156,444 120,601
------ ------------ --------------- -----------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2021
Foreign Share
currency based
Share Share translation payment Other Retained
capital premium reserve reserve reserves earnings Total
Notes EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Balance at 31
December 2019
(audited) 956 - 15 788 - 130,013 131,772
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Total
comprehensive
loss for the
period - - - - - (18,078) (18,078)
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Issue of
ordinary
shares for
cash 10 191 15,042 - - - - 15,233
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Share issue
cost 10 - (698) - - - - (698)
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Credit to
equity for
equity
settled
share-based
payments - - - 303 - - 303
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
As at 30 June
2020
(unaudited) 1,147 14,344 15 1,091 - 111,935 128,532
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Total
comprehensive
loss for the
period - - (7) - - (30,779) (30,786)
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Bonus Issue 16 (16) - - - - -
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Credit to
equity for
equity
settled
share-based
payments - - - 119 - - 119
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
As at 31
December 2020
(audited) 1,163 14,328 8 1,210 - 81,156 97,865
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Issue of
warrants 13 - - - - 3,073 - 3,073
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Total
comprehensive
loss for the
period - - 8 - - (20,357) (20,349)
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
Credit to
equity for
equity
settled
share-based
payments - - - 370 - - 370
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
As at 30 June
2021
(unaudited) 1,163 14,328 16 1,580 3,073 60,799 80,959
------ ------------ ------------ ------------ ----------- ------------ ----------- -----------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2021
Year
Six months Six months ended ended 31 December 2020
ended 30 June 2020
Notes 30 June 2021
EUR'000 EUR'000 EUR'000
-------- --------------- ------------------- -------------------------
(Unaudited) (Unaudited) (Audited)
-------- --------------- ------------------- -------------------------
Cash flows from operating activities
-------- --------------- ------------------- -------------------------
Loss before taxation (20,698) (18,840) (50,495)
-------- --------------- ------------------- -------------------------
Depreciation of property, plant and
equipment 4 1,158 1,301 2,458
-------- --------------- ------------------- -------------------------
Amortisation of intangible assets 4 7,289 5,700 11,674
-------- --------------- ------------------- -------------------------
Impairment of intangible assets - - 14,996
-------- --------------- ------------------- -------------------------
Share of result of associate 170 100 374
-------- --------------- ------------------- -------------------------
Finance income - (8) (8)
-------- --------------- ------------------- -------------------------
Finance costs 1,441 111 246
-------- --------------- ------------------- -------------------------
Net (profit) / loss on disposal of
property, plant and equipment (112) 11 (55)
-------- --------------- ------------------- -------------------------
Employee equity settled share-based
payment expense 367 303 428
-------- --------------- ------------------- -------------------------
Changes in working capital items:
-------- --------------- ------------------- -------------------------
Increase in trade and other payables 1,201 6,972 5,586
-------- --------------- ------------------- -------------------------
(Increase) / decrease in trade and other
receivables (268) 2,674 3,299
-------- --------------- ------------------- -------------------------
Cash used by operations (9,452) (1,676) (11,497)
-------- --------------- ------------------- -------------------------
Interest paid (105) (111) (246)
-------- --------------- ------------------- -------------------------
Interest received - 8 8
-------- --------------- ------------------- -------------------------
Income tax received 9 64 698
-------- --------------- ------------------- -------------------------
Net cash used by from operating activities (9,548) (1,715) (11,037)
-------- --------------- ------------------- -------------------------
Cash flows from investing activities
-------- --------------- ------------------- -------------------------
Acquisition/capitalisation of intangible
assets 7 (756) (2,206) (3,802)
-------- --------------- ------------------- -------------------------
Purchases of property, plant and equipment 8 (15) (59) (64)
-------- --------------- ------------------- -------------------------
Acquisition of investment in associate - 9 -
-------- --------------- ------------------- -------------------------
Net cash used in investing activities (771) (2,256) (3,866)
-------- --------------- ------------------- -------------------------
Cash flows from financing activities
-------- --------------- ------------------- -------------------------
Deferred consideration (124) - (503)
-------- --------------- ------------------- -------------------------
Proceeds from issue of share capital - 15,233 15,233
-------- --------------- ------------------- -------------------------
Issue costs paid - (698) (698)
-------- --------------- ------------------- -------------------------
Transaction costs related to borrowings 13 (862) - -
-------- --------------- ------------------- -------------------------
Proceeds from borrowings 13 28,800 3,454 3,454
-------- --------------- ------------------- -------------------------
Repayment of borrowings 13 (1,164) - (2,290)
-------- --------------- ------------------- -------------------------
Repayments of lease liabilities (828) (475) (1,462)
-------- --------------- ------------------- -------------------------
Net cash generated from financing
activities 25,822 17,514 13,734
-------- --------------- ------------------- -------------------------
Net increase / (decrease) in cash and cash
equivalents 15,503 13,543 (1,169)
-------- --------------- ------------------- -------------------------
Cash and cash equivalents at the beginning
of the period 18,189 19,365 19,365
-------- --------------- ------------------- -------------------------
Effect of foreign exchange rate changes 10 - (7)
-------- --------------- ------------------- -------------------------
Cash and cash equivalents at the end of
the period 33,702 32,908 18,189
-------- --------------- ------------------- -------------------------
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
1. GENERAL INFORMATION
Hostelworld Group plc, hereinafter "the Company", is a public
limited company incorporated in the United Kingdom on the 9 October
2015.
The registered office of the Company is Floor 5, 38 Chancery
Lane, The Cursitor, London, WC2A 1EN, United Kingdom.
The condensed Group financial statements of the Company for the
six months ended 30 June 2021 comprise the Company and its
subsidiaries (together referred to as "the Group"). The condensed
Group financial statements for the period ended 30 June 2021 have
neither been audited or reviewed.
The information for the year ended 31 December 2020 does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditors
reported on those accounts and their report was unqualified, did
not draw attention to any matters by way of emphasis and did not
contain a statement under section 498(2) or (3) of the Companies
Act 2006.
These condensed Group financial statements were authorised for
issue by the Board of Directors of Hostelworld Group plc on 11
August 2021.
2. ACCOUNTING POLICIES
Basis of preparation
The annual financial statements of the Group will be prepared in
accordance with United Kingdom adopted International Financial
Reporting Standards. The condensed set of financial statements
included in this half--yearly financial report has been prepared in
accordance with United Kingdom adopted International Accounting
Standard 34 'Interim Financial Reporting'.
Going concern
The directors, after making enquiries, have a reasonable
expectation that the Group has adequate resources to continue
operating as a going concern for the foreseeable future.
Global travel demand remained muted throughout H1 2021 with
ongoing travel restrictions continuing to severely impact the
global travel industry. Revenue for H1 2021 totalled EUR2.9m (H1
2020: EUR12.0m) and the Group incurred a loss before taxation of
EUR20.7m (H1 2020: EUR18.8m). At 30 June 2021 the Group was in a
net asset position of EUR81.0m (31 December 2020: EUR97.9m) and a
cash balance of EUR33.7m (31 December 2020: EUR18.2m).
The directors have a number of actions in place to preserve the
Group's cash position including the decision to suspend any cash
dividends, continuing negotiation of credit terms with key vendors,
availing of debt warehousing of Irish employer taxes, the
elimination of all non-essential operating costs including
marketing, recruitment, travel and other variable overheads, and
availing of Government COVID-19 supports in both Ireland and the
UK.
The Group has been reforecasting on a bi-weekly basis its cash
position for 2021. Throughout COVID-19 two forecasts were developed
under a base case and stress-case scenario analysis. Both scenarios
included differing assumptions with regard to cost cutting
measures, projected revenue flows and return to recovery
assumptions, projected net cash flows from operations and available
sources of funding. Under both scenarios full recovery is not
expected to happen until FY-23. Our stress case scenario assumes
more depressed volumes with minimal recovery in H2 2021. In both
scenarios, the Group has sufficient cash reserves available.
The directors have taken steps to ensure adequate liquidity is
available to the Group for the likely duration of the crisis and
the recovery period. Following the completion of a Firm Placing and
Open Offer, and the securing of a revolving credit facility in
2020, on 19 February 2021 the Group signed a EUR30m five-year term
loan facility with certain investment funds and accounts of HPS
Investment Partners LLC or subsidiaries or affiliates thereof. An
amount of EUR28.8m was drawn down on 23 February 2021. The key
features of the facility are as follows:
-- The facility is single drawdown and bears interest at a
margin of 9.0% per annum over EURIBOR (with a EURIBOR floor of
0.25% per annum).
-- Financial covenants as follows (1) adjusted net leverage
(Hostelworld has to ensure that total net debt is no more than 3.0
x adjusted EBITDA from 31 December 2023 to 30 September 2024, and
no more than 2.5 x adjusted EBITDA from 31 December 2024 onwards);
and (2) minimum liquidity (Hostelworld has to ensure that at close
of business on the last business day of each month until it is
testing the adjusted net leverage ratios there is free cash in
members of the Group which have guaranteed repayment of the
facility of at least EUR6.0 million).
-- Security on the facility includes the share capital of the
Group, the bank accounts of the Group and the Group's intellectual
property.
Had we been required to test our minimum liquidity covenants at
30 June 2021 the Group would have been found to be in compliance.
Having considered the Group's cash flow forecasts, current and
anticipated trading volumes, together with current and anticipated
levels of cash, debt and the availability of committed borrowing
facilities, the directors are satisfied that the Group has
sufficient resources to continue in operation for the foreseeable
future, a period of not less than 12 months from the date of
signing of this report, and accordingly, they continue to adopt the
going concern basis in preparing the condensed Group financial
statements.
Changes in accounting policies
Since the last Annual Report there are a number of amendments to
existing accounting standards that have been adopted. These had no
material impact on the condensed Group financial statements. The
same accounting policies and methods of computation are followed
compared with the most recent annual Group financial statements.
For the period ended 30 June 2021 the following accounting
policies, not disclosed in the last annual report, are also
significant.
Borrowings
All loans and borrowings are initially recognised at fair value
of the proceeds received less any directly attributable transaction
costs. Transaction costs include fees and commission paid to
agents, advisers brokers and dealers.
After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the effective
interest method being the amount at which the financial liability
is measured at initial recognition minus any principal repayments,
plus or minus the cumulative amortisation using the effective
interest method of any difference between that initial amount and
the maturity amount.
Borrowings are de-recognised when the Group's obligations
specified in the contracts expire, are discharged or cancelled.
Borrowings are classified as current liabilities unless the
Group has an unconditional right to defer settlement of the
liability for at least 12 months after the financial position
date.
Recognition of warrants
Warrant reserve is recorded at the fair value of warrants
issued. Warrants have been recognised as equity instruments as each
warrant issued entitles the holder to a fixed number of ordinary
shares in exchange for a fixed exchange price of EUR0.01 per
ordinary equity share.
Key judgements and sources of estimation uncertainty
In preparing these condensed Group financial statements, the
directors have made judgements in applying the Group's accounting
policies and there are key sources of estimation uncertainty which
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing the condensed Group financial statements, the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those applied to the consolidated financial
statements for the year ended 31 December 2020. The annual report
was published on 23 March 2021.
3. REVENUE & SEGMENTAL ANALYSIS
The Group is managed as a single business unit which provides
software and data processing services that facilitate hostel, hotel
and other accommodation bookings worldwide, including ancillary
online advertising revenue.
The directors determine, and present operating segments based on
the information that is provided internally to the Chief Executive
Officer, who is the Company's Chief Operating Decision Maker
("CODM"). When making resource allocation decisions, the CODM
evaluates booking numbers and average booking value. The objective
in making resource allocation decisions is to maximise consolidated
financial results.
The CODM assesses the performance of the business based on the
consolidated adjusted loss after tax of the Group for the period.
This measure excludes the effects of certain income and expense
items, which are unusual by virtue of their size and incidence, in
the context of the Group's ongoing core operations, such as the
impairment of intangible assets and one-off items of
expenditure.
All revenue is derived wholly from external customers and is
generated from a large number of customers, none of whom is
individually significant.
The Group's major revenue-generating asset class comprises its
software and data processing services and is directly attributable
to its reportable segment operations. In addition, as the Group is
managed as a single business unit, all other assets and liabilities
have been allocated to the Group's single reportable segment. There
have been no changes to the basis of segmentation or the
measurement basis for the segment profit or loss.
Reportable segment information is presented as follows:
Six months ended 30 June Six months ended 30 June Year ended 31 December
2021 2020 2020
EUR'000 EUR'000 EUR'000
-------------------------- -------------------------- -------------------------- ---------------------------
(Unaudited) (Unaudited) (Audited)
-------------------------- -------------------------- ---------------------------
Europe 989 5,272 7,354
-------------------------- -------------------------- ---------------------------
Americas 1,470 3,099 3,779
-------------------------- -------------------------- ---------------------------
Asia, Africa and Oceania 432 3,663 4,231
-------------------------- -------------------------- ---------------------------
Total revenue 2,891 12,034 15,364
-------------------------- -------------------------- ---------------------------
For the six-month period ended 30 June 2021, an amount of
EUR894k was deferred to the balance sheet (for the six months ended
30 June 2020: we recognised previously deferred revenue of
EUR2,188k).
Disaggregation of revenue is presented as follows:
Six months ended 30 Six months ended 30 Year ended 31 December
June 2021 June 2020 2020
EUR'000 EUR'000 EUR'000
------------------------------------- ---------------------- ----------------------- -----------------------
(Unaudited) (Unaudited) (Audited)
---------------------- ----------------------- -----------------------
Technology and data processing fees 2,872 11,453 14,251
---------------------- ----------------------- -----------------------
Ancillary services and advertising
revenue 19 581 1,113
---------------------- ----------------------- -----------------------
Total revenue 2,891 12,034 15,364
---------------------- ----------------------- -----------------------
In the six months ended 30 June 2021, the Group generated 99%
(2020: 95%) of its revenues from the technology and data processing
fees that it charged to accommodation providers.
Revenue is recognised at the time the reservation is made in
respect of non-refundable commission on the basis that the Group
has met its performance obligations at the time the booking is
made. In respect of the free cancellation product, which offers the
traveller the opportunity to make a booking on a free cancellation
basis and to receive a refund of their deposit in certain
circumstances, such related revenue is not recognised until the
last cancellation date has passed as one party can withdraw from
the contract until such a date has passed. Deferred revenue is
expected to be recognised within twelve months of initial
recognition. Advertising revenue and revenue generated from other
services are recognised over the time-period when the service is
performed.
4. OPERATING EXPENSES
Loss for the period has been arrived at after charging the
following operating costs:
Six months ended Six months ended Year ended 31 December 2020
30 June 2021 30 June 2020
EUR'000 EUR'000 EUR'000
------------------------------------------- ----------------- ----------------- ----------------------------
(Unaudited) (Unaudited) (Audited)
----------------- ----------------- ----------------------------
Marketing expenses 2,424 7,466 9,260
----------------- ----------------- ----------------------------
Staff costs 7,267 8,673 16,759
----------------- ----------------- ----------------------------
Credit card processing fees 129 476 571
----------------- ----------------- ----------------------------
Loss on disposal of property, plant and
equipment 6 11 12
----------------- ----------------- ----------------------------
Profit on disposal of property, plant and
equipment - - (67)
----------------- ----------------- ----------------------------
Profit on disposal of lease liability (118) - -
----------------- ----------------- ----------------------------
Exceptional items 589 2,996 2,989
----------------- ----------------- ----------------------------
Foreign exchange loss / (gain) 125 7 (152)
----------------- ----------------- ----------------------------
Other administrative costs 3,109 4,041 6,747
----------------- ----------------- ----------------------------
Total administrative expenses 13,531 23,670 36,119
----------------- ----------------- ----------------------------
Impairment of intangible assets - - 14,996
----------------- ----------------- ----------------------------
Depreciation of property, plant and
equipment 1,158 1,301 2,458
----------------- ----------------- ----------------------------
Amortisation of intangible fixed assets 7,289 5,700 11,674
----------------- ----------------- ----------------------------
Total depreciation, amortisation and
impairment 8,447 7,001 29,128
----------------- ----------------- ----------------------------
Total operating expenses 21,978 30,671 65,247
----------------- ----------------- ----------------------------
Total administration expenses decreased by EUR10,139k compared
to the same period in 2020, driven by the reduction of
non-essential operating costs, as a result of COVID-19.
Included in staff costs are government assistance amounts
totalling EUR892k (30 June 2020: EUR289k) for furloughed employees
under the Coronavirus Job Retention Scheme in the UK and subsidy
received under the Employment Wage Subsidy Scheme in Ireland.
The exceptional costs for the six months period amounted to
EUR589k (30 June 2020: EUR2,996k). Restructuring costs primarily
relating to an organisational restructure within our marketing
department and a release of costs previously accrued for due to a
revision of estimate within merger and acquisition related costs.
Prior year restructuring costs included costs relating to an
internal realignment of our technology and product departments and
relating staff restructuring costs, and professional fees incurred
on review of funding options for the Group. Prior year merger and
acquisition fees related to professional fees incurred in the year
on related activity.
Six months ended 30 June Six months ended 30 June Year ended 31 December
2021 2020 2020
EUR'000 EUR'000 EUR'000
---------------------------- ------------------------- -------------------------- --------------------------
(Unaudited) (Unaudited) (Audited)
------------------------- -------------------------- --------------------------
Merger & acquisition costs (133) 2,262 1,332
------------------------- -------------------------- --------------------------
Restructuring costs 722 734 1,657
------------------------- -------------------------- --------------------------
Total exceptional items 589 2,996 2,989
------------------------- -------------------------- --------------------------
5. TAXATION
The corporation tax charge for the six-month period is forecast
at EUR62k (30 June 2020: credit EUR294k). 2021 charge relates
primarily to our UK and Portuguese operations where tax losses from
our Irish operations cannot be utilised.
Taxation charge represents the best estimate of the average
annual effective tax rate expected for the full year applied to the
pre-tax loss of the six-month period. In calculating the expected
tax rate, the Group has taken the forecasted full year 2021 EBITDA.
Movement year on year primarily relates to the Group availing of
corporation tax loss relief introduced by the Irish Revenue in
2020.
The deferred tax credit for the six-month period totalled
EUR403k (30 June 2020: EUR468k). The only revision in estimates
applied to deferred tax from the year end relate to the application
of an increase in the UK corporation tax rate. We have calculated
our UK deferred tax on the basis of the proposed increase in the
corporation tax rate to 25% effective from 1 April 2023. When
assessing our corporate tax history and pattern of quarterly
payments in the UK along with our budgeted return to forecasted
profits in the near term, we have concluded that the 25% tax rate
will apply to our UK operations from 1 April 2023. We have elected
to exclude the impact of the re-measurement of deferred tax
balances from the forecast annual effective tax rate and account
for it as a 'discrete' tax charge or benefit in the period that
includes the substantive enactment.
Deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available against
which any unused tax losses and unused tax credits can be utilised.
Future taxable profits have been estimated using the board approved
5-year plan in November 2020 and adjusted for latest COVID
projections presented to the Board in June 2021.
6. LOSS PER SHARE
Basic loss per share is computed by dividing the net loss for
the period available to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the
period:
Six months Six months Year
ended ended ended 31
30 June 2021 30 June 2020 December 2020
(Unaudited) (Unaudited) (Audited)
-------------- -------------- ---------------
Weighted average number of shares in issue ('000s) 116,321 97,207* 106,947
-------------- -------------- ---------------
Loss for the period (EUR'000s) (20,357) (18,078) (48,857)
-------------- -------------- ---------------
Basic and diluted loss per share (EUR cent) (17.50) (18.60)* (45.68)
-------------- -------------- ---------------
Diluted loss per share is computed by adjusting the weighted
average number of ordinary shares in issue to assume conversion of
all potential dilutive ordinary shares. Share options and share
awards are the Company's only potential dilutive ordinary shares.
Ordinary shares potentially issuable from share-based payment
arrangements are anti-dilutive due to the loss in the financial
period meaning there is no difference between basic and diluted
earnings per share.
*The 2020 loss per share figures for six months ended 30 June
2020 have been restated to incorporate the 1,636,252 new
Hostelworld Group ordinary shares that were issued in September
2020. The weighted average number of shares in issue during the
period was adjusted to include these bonus shares as if they were
issued 1 January 2019.
7. INTANGIBLE ASSETS
Additions during the period comprised of internally generated
additions of EUR756k (2020: EUR2,206k).
At 31 December 2020 we took an impairment on our Hostelworld.com
intellectual property of EUR14,502k and an impairment of EUR494k on
our Hostelbookers intellectual property. At 30 June 2021 we
performed a review of the carrying value of our intangible assets
to assess if there were indicators of further impairment present.
The impairment testing of goodwill and Hostelworld.com intellectual
property at the reporting date is based on the key assumptions
disclosed in the 2020 Annual Report, updated to take account of our
latest projections (as further described in the going concern
section). The testing did not result in any impairment at the
balance sheet date.
8. PROPERTY, PLANT AND EQUIPMENT
The Group recognised additions during the six months ended 30
June 2021 totalling EUR15k for computer equipment and right-of-use
lease asset additions EUR116k (30 June 2020: additions of EUR1,662k
including right-of-use lease asset additions for our lease for the
UK office totalling EUR1,603k.)
For the six months period ended 30 June 2021 the Group also
disposed of assets with a net book value of EUR6k (30 June 2020:
EUR11k) and recognised a loss on disposal in each period. The EUR6k
loss on disposal relates to computer equipment of EUR1k and
right-of-use lease assets of EUR5k.
9. TRADE AND OTHER RECEIVABLES
30 June 30 June 31 December 2020
2021 2020
EUR'000 EUR'000 EUR'000
------------ ------------ -----------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ -----------------
Amounts falling due within one year
------------ ------------ -----------------
Trade receivables 449 226 188
------------ ------------ -----------------
Prepayments and accrued income 1,051 1,435 1,191
------------ ------------ -----------------
Value added tax 449 645 302
------------ ------------ -----------------
1,949 2,306 1,681
------------ ------------ -----------------
10. SHARE CAPITAL
No of shares of EUR0.01 Share capital EUR'000 Share premium EUR'000 Total EUR'000
each (thousands)
At 30 June 2020 114,685 1,147 14,344 15,491
------------------------- ---------------------- ---------------------- --------------
Bonus issue - 17 September
2020 1,636 16 (16) -
------------------------- ---------------------- ---------------------- --------------
At 31 December 2020 and 30
June 2021 116,321 1,163 14,328 15,491
------------------------- ---------------------- ---------------------- --------------
The Group has one class of ordinary shares which carry no right
to fixed income. The share capital of the Group is represented by
the share capital of the parent company, Hostelworld Group plc. All
the Company's shares are fully paid up and quoted on London Stock
Exchange and Euronext Dublin.
On 17 September 2020, the company issued 1,636,252 bonus shares
to shareholders in lieu of a cash dividend at value EUR0.01 per
share.
11. TRADE AND OTHER PAYABLES
30 June 30 June 31 December 2020
2021 2020
EUR'000 EUR'000 EUR'000
------------ ------------ -----------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ -----------------
Current
------------ ------------ -----------------
Trade payables 2,905 5,044 2,258
------------ ------------ -----------------
Accruals and other payables 6,353 9,078 9,003
------------ ------------ -----------------
Deferred revenue 1,102 949 207
------------ ------------ -----------------
Payroll taxes 6,609 2,082 4,302
------------ ------------ -----------------
Deferred consideration 1,144 893 1,266
------------ ------------ -----------------
18,113 18,046 17,036
------------ ------------ -----------------
At 30 June 2021, EUR1,090k deferred revenue related to free
cancellation bookings is included in deferred revenue (30 June
2020: EUR589k) and EUR12k relates to featured listings deferred
revenue (30 June 2020: EUR360k).
Included in accruals and other payables is a credit provision
EUR1,573k (30 June 2020: EUR1,724k) for various credits and
incentives to customers for use on future bookings, and an amount
of EUR1,937k (30 June 2020: EUR2,677k) relating to customers who
have cancelled their free cancellation booking but have not been
refunded.
Increase in payroll taxes to 30 June 2021 reflects the
warehousing of Irish employer taxes.
12. LEASE LIABILITIES
Lease liabilities relate to the Group's lease commitments for
office space in Ireland, Portugal, UK and China. The movement in
the Group's right-of-use assets during the period is set out in
note 8. The movement in the Group's lease liabilities during the
period is as follows:
30 June 30 June 31 December 2020
2021 2020
EUR'000 EUR'000 EUR'000
------------ ------------ -----------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ -----------------
Opening lease liability 4,295 4,292 4,291
------------ ------------ -----------------
Additions 82 1,603 1,681
------------ ------------ -----------------
Disposals (118) - (344)
------------ ------------ -----------------
Lease term remeasurement 34 - 129
------------ ------------ -----------------
Payments (953) (640) (1,555)
------------ ------------ -----------------
Lease interest 69 17 182
------------ ------------ -----------------
Foreign exchange differences on lease payments 55 146 (89)
------------ ------------ -----------------
3,464 5,418 4,295
------------ ------------ -----------------
The disposal of lease liability of EUR118k arose due to the
disposal of leases held in China and London for amounts forgiven by
landlords.
These liabilities are classified in the consolidated statement
of financial position as:
30 June 30 June 31 December 2020
2021 2020
EUR'000 EUR'000 EUR'000
------------ ------------ -----------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ -----------------
Non-current lease liabilities 2,018 3,571 2,492
------------ ------------ -----------------
Current lease liabilities 1,446 1,847 1,803
------------ ------------ -----------------
3,464 5,418 4,295
------------ ------------ -----------------
13. BORROWINGS
The Group had the following borrowing facilities in place during
2021:
Firstly a 'Prompt Pay' which was a short-term invoice financing
facility with Allied Irish Banks PLC. Terms attached to the
facility was that Hostelworld.com Limited must ensure it maintains
a cash balance of no less than EUR8.67m for the period ending 30th
September 2020, EUR5.75m for the period ending 31 December 2020 and
EUR1.42m for the period ending 31 March 2021. On 26 January 2021
the amount owing on the facility was repaid in full.
Secondly a three-year revolving credit facility for EUR7m with
the Governor and Company of the Bank of Ireland to assist with the
investing and development needs of the business. No amounts were
drawn down on this facility. On 10 February 2021 the Group signed a
deed of release exiting the undrawn facility in place. Covenants
attached to the facility as follows: Hostelworld.com Limited was to
retain minimum cash balances of 20% of drawn facilities and the
revolving credit facility was required to return to credit 20 days
per annum. Hostelworld.com Limited were also required to maintain a
minimum tangible net worth of not less than EUR90m.
Thirdly, on 19 February 2021 the Group signed a EUR30m five-year
term loan facility with certain investment funds and accounts of
HPS Investment Partners LLC or subsidiaries or affiliates thereof.
The facility is single drawdown and bears interest at a margin of
9.0% per annum over EURIBOR (with a EURIBOR floor of 0.25% per
annum). The facility agreement includes the following financial
covenants: (1) adjusted net leverage (Hostelworld has to ensure
that total net debt is no more than 3.0 x adjusted EBITDA from 31
December 2023 to 30 September 2024, and no more than 2.5 x adjusted
EBITDA from 31 December 2024 onwards); and (2) minimum liquidity
(Hostelworld has to ensure that at close of business on the last
business day of each month until it is testing the adjusted net
leverage ratios there is free cash in members of the Group which
have guaranteed repayment of the facility of at least EUR6.0
million).
The lenders have the right to require repayment of the facility
if Hostelworld is subject to a change in control and Hostelworld
has the option to repay the facility early. Security on the
facility includes the share capital of the Group, the bank accounts
of the Group and the Group's intellectual property.
An amount of EUR28.8m was drawn down on 23 February 2021, net of
original issue discount.
30 June 30 June 31 December 2020
2021 2020
EUR'000 EUR'000 EUR'000
------------ ------------ -----------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ -----------------
Opening balance 1,164 - -
------------ ------------ -----------------
Drawdown 28,800 3,454 3,454
------------ ------------ -----------------
Repayments (1,164) - (2,290)
------------ ------------ -----------------
Loan issuance costs - issue of warrants (3,073) - -
------------ ------------ -----------------
Transaction costs related to borrowings (862) - -
------------ ------------ -----------------
Amortisation of transaction costs 146 - -
------------ ------------ -----------------
Amortisation of warrant costs 218 - -
------------ ------------ -----------------
Finance costs 971 - -
------------ ------------ -----------------
26,200 3,454 1,164
------------ ------------ -----------------
In connection with the facility, Hostelworld has agreed to issue
warrants over 3,315,153 ordinary shares of EUR0.01 each in the
capital of Hostelworld (equivalent to 2.85% of Hostelworld's
current issued share capital) to the lender. The warrants may be
exercised at any time during the term of the loan and for a
twelve-month period following its scheduled termination at an
exercise price of EUR0.01 per ordinary share. Shares issued will be
the same class and carry the same rights as existing shares. An
amount of EUR3,073k was recorded for the initial recognition of the
warrants calculated on the basis of the market price of the shares
on the date of the agreement 19 February 2021 of EUR3,107k minus
the subscription price of EUR33,151 (3,315,153 X EUR0.01).
14. DIVIDS
There are no dividends in 2020 or 2021 as the Board took the
decision to suspend cash dividends in 2020. Future cash dividend
payments will be subject to the Group generating adjusted profit
after tax, the Group's cash position, any restrictions in the
Group's banking facilities and subject to compliance with Companies
Act 2006 requirements regarding ensuring sufficiency of
distributable reserves at the time of paying the dividend.
15. SHARE BASED PAYMENTS
During 2021 the Company granted a restricted share award ("RSU")
to selected employees, including the executive directors and
members of the management team. 2,456,763 nil cost options were
granted. 80,827 were forfeited at 30 June 2021 as a result of
leavers. Each award will vest in two tranches on 28 February 2022
in respect of 50% of the plan shares and 28 February 2023 in
respect of the remaining 50% of the plan shares. Vesting will be
dependent upon the participant being employed by Hostelworld as of
the vesting date and satisfactory personal performance.
During the six-months ended 30 June 2021, there was one
invitation made to executive directors and selected management to
participate in the Group's long-term incentive plan ("LTIP").
2,336,885 nil cost options were granted, and these options will
vest on 26 April 2024 subject to meeting performance conditions
based on the Company's adjusted EBITDA over a three-year period,
Counter App revenue generated based on a target in 2023 and
customer acquisition value targets to be met in 2023.
On 17 September 2020, the company issued 1,636,252 bonus shares
to shareholders in lieu of a cash dividend at value EUR0.01 per
share. An adjustment was made to the LTIP and Save As You Earn
("SAYE") schemes in 2021, when approved by the Remuneration
Committee , to ensure that award holders are no better or worse off
following the bonus issue than they were beforehand.
Details of the LTIP share options outstanding during the period
are as follows:
30 June 2021 30 June 2020 31 December 2020
No. of share options No. of share options No. of share options
--------------------- --------------------- ---------------------
Outstanding at beginning of period 3,864,472 1,501,647 1,501,647
--------------------- --------------------- ---------------------
Adjustment applied 55,262 - -
--------------------- --------------------- ---------------------
Revised balance outstanding at beginning of 3,919,734 - -
period
--------------------- --------------------- ---------------------
Granted during the period 2,336,885 3,793,200 3,793,200
--------------------- --------------------- ---------------------
Forfeited during the period (608,594) (34,433) (1,430,375)
--------------------- --------------------- ---------------------
Exercised during the period - - -
--------------------- --------------------- ---------------------
Expired during the period - - -
--------------------- --------------------- ---------------------
Outstanding at the end of the period 5,648,025 5,260,414 3,864,472
--------------------- --------------------- ---------------------
Exercisable at the end of the period - - -
--------------------- --------------------- ---------------------
As at 30 June 2021, there have been 900,467 options granted to a
number of eligible employees in the Group as part of the SAYE
scheme (30 June 2020: 530,784 options). As at 30 June 2021, 545,808
of these options have been cancelled (30 June 2020: 313,708
options). Net shares outstanding as part of the SAYE scheme,
following application of the adjustment discussed above, amounts to
359,731.
16. GROUP STRUCTURE
On 4 June 2020 Hostelworld.com Limited incorporated a new
subsidiary "Hostelworld Business Consulting (Shanghai) Co.,
Limited". The principal activity of this subsidiary is business
information consulting and marketing planning.
There are no other changes to highlight in respect of H1
2021.
17. EVENTS AFTER THE REPORTING DATE
On 7 July 2021 the directors of Goki PTY Limited approved a
reduction in the investment held by Hostelworld.com Limited in the
company. The shareholding was reduced from 49% to 31.5% through
means of a capital reduction. Hostelworld.com Limited retains one
Board seat and continues to exert significant influence over the
company. Hostelworld.com Limited will continue to account for Goki
PTY Limited as an associate. The original purchase consideration
for the investment in Goki PTY Limited was USD 3,000k. At 30 June
2021 we had included deferred consideration in our accounts of
$1,360k (EUR1,144k). Following the completion of the reduction in
investment total purchase consideration will reduce to $1,890k, and
deferred consideration will reduce to $250k to be paid in July and
September 2021.
On 19 July 2021, a German branch of Hostelworld.com was
established as a permanent establishment.
There have been no other significant events, outside the
ordinary course of business, affecting the Group since 30 June
2021.
APPIX: ALTERNATIVE PERFORMANCE MEASURES
The Group uses the following alternative performance measures
('APMs') which are non-IFRS measures to monitor the performance of
its operations and of the Group as a whole: loss / earnings before
interest, tax, depreciation and amortisation, excluding exceptional
and non-cash items ("adjusted EBITDA"), adjusted loss / profit
after taxation; adjusted loss or earnings per share, adjusted free
cash flow and adjusted free cash flow conversion.
Adjusted EBITDA
The Group uses loss / earnings before interest, tax,
depreciation and amortisation, excluding exceptional and non-cash
items ("Adjusted EBITDA") as a key performance indicator when
measuring the outcome in the business from one period to the next,
and against budget. Exceptional items by their nature and size can
make interpretation of the underlying trends in the business more
difficult. We believe this alternative performance measure reflects
the key drivers of profitability for the Group and removes those
items which do not impact underlying trading performance.
Reconciliation between loss for the year and adjusted
EBITDA:
EUR'000 H1 2021 H1 2020
Loss for the year (20,357) (18,078)
--------------------------- -----------------------
Taxation (341) (762)
--------------------------- -----------------------
Net finance costs 1,441 103
--------------------------- -----------------------
Share of result of associate 170 100
--------------------------- -----------------------
Operating loss (19,087) (18,637)
--------------------------- -----------------------
Depreciation 1,159 1,301
--------------------------- -----------------------
Amortisation of development
costs 1,435 1,078
--------------------------- -----------------------
Amortisation of acquired intangible
assets 5,853 4,622
--------------------------- -----------------------
Exceptional items 589 2,996
--------------------------- -----------------------
Share based payment expense 367 300
--------------------------- -----------------------
Adjusted EBITDA (9,684) (8,340)
--------------------------- -----------------------
Adjusted profit after taxation ("Adjusted PAT")
Adjusted profit after taxation is an alternative performance
measure that the Group uses to calculate the dividend pay-out for
the year, subject to Company Law requirements regarding
distributable profits and the dividend policy within the Group. It
excludes exceptional items, amortisation of acquired domain and
technology intangibles, net finance costs, share based payment
expenses and deferred taxation which can have large impacts on the
reported result for the year, and which can make underlying trends
difficult to interpret.
Reconciliation between adjusted EBITDA and loss for the
year:
EUR'000 H1 2021 H1 2020
Adjusted EBITDA (9,684) (8,340)
---------------------------- -----------------------
Depreciation (1,159) (1,301)
---------------------------- -----------------------
Amortisation of development
costs (1,435) (1,078)
---------------------------- -----------------------
Net finance costs (1,441) (103)
---------------------------- -----------------------
Share of result of associate (170) (100)
---------------------------- -----------------------
Corporation tax (62) 294
---------------------------- -----------------------
Adjusted loss after taxation (13,951) (10,628)
---------------------------- -----------------------
Exceptional items (589) (2,996)
---------------------------- -----------------------
Amortisation of acquired intangible
assets (5,853) (4,622)
---------------------------- -----------------------
Share based payment expense (367) (300)
---------------------------- -----------------------
Deferred taxation 403 468
---------------------------- -----------------------
Loss for the year (20,357) (18,078)
---------------------------- -----------------------
Adjusted EPS
Adjusted EPS is an alternative performance measure that excludes
exceptional items, amortisation of acquired domain and technology
intangibles, net finance costs, share based payment expenses and
deferred taxation which can have large impacts on the reported
result for the year, and which can make underlying trends difficult
to interpret.
H1 2021 H1 2020
Adjusted loss after taxation
EUR'm (13,951) (10,628)
----------------------- -------------------
Weighted average shares in
issue ('m) 116 97
----------------------- -------------------
Adjusted EPS (12.0) (10.9)
----------------------- -------------------
The H1 2020 earnings per share figures have been restated to
incorporate the 1,636,252 new Hostelworld Group ordinary shares
that were issued in September 2020. The weighted average number of
shares in issue during the period was adjusted to include these
bonus shares as if they were issued 1 January 2020.
Adjusted free cash flow
The Group uses adjusted free cash flow to measure the amount of
underlying cash generation and the cash available for distribution
and allocation. The Group calculates adjusted free cash flow as the
adjusted EBITDA for the Group before capital expenditure,
capitalised development spend, acquisition and disposal of
undertakings and adjusting for interest, tax and movements in
working capital.
EUR'000 H1 2021 H1 2020
Adjusted EBITDA (9,684) (8,340)
---------------------------- -------------------------
Intangible asset additions (756) (2,206)
---------------------------- -------------------------
Capital expenditure (15) (59)
---------------------------- -------------------------
Deferred consideration / acquisition
of associate (124) 9
---------------------------- -------------------------
Net interest and tax paid (96) (39)
---------------------------- -------------------------
Net movement in working capital 933 7,845
---------------------------- -------------------------
Adjusted free cash flow (9,742) (2,790)
---------------------------- -------------------------
Adjusted free cash flow conversion (101%) (33%)
---------------------------- -------------------------
(1) The Group uses Alternative Performance Measures ('APMs')
which are non-IFRS measures to monitor the performance of its
operations and of the Group as a whole. These APMs along with their
definitions and reconciliations to IFRS measures are provided in
the APMs section on pages 35 and 36.
(2) The H1 2020 earnings per share figures have been restated to
incorporate the 1,636,252 new Hostelworld Group ordinary shares
that were issued in September 2020. The weighted average number of
shares in issue during the period was adjusted to include these
bonus shares as if they were issued 1 January 2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR EAEPEFALFEAA
(END) Dow Jones Newswires
August 11, 2021 02:00 ET (06:00 GMT)
Hostelworld (LSE:HSW)
Historical Stock Chart
From Feb 2024 to Mar 2024
Hostelworld (LSE:HSW)
Historical Stock Chart
From Mar 2023 to Mar 2024