TIDMHSW

RNS Number : 1241C

Hostelworld Group PLC

15 October 2020

LEI:213800OC94PF2D675H41

Hostelworld Group plc

("Hostelworld" or the "Group" or "we")

Trading update

15 October 2020: Hostelworld, a leading global OTA focused on the hostel market, provides the following update on current trading.

As detailed in our interim results on 12 August 2020, we saw a very modest recovery in domestic bookings in late June, and short haul bookings into Europe in July and early August as travel restrictions were eased; resulting in the business tracking slightly ahead of the Base Case scenario outlined at the time of the Group's equity placing in June. At that time, we stated that we expected the pace of recovery to be driven by changes in travel guidance in individual markets over the coming months, both positive and negative.

Since the end of August, travel restrictions have tightened globally and we have seen demand level off, and in recent weeks we have experienced a marked deterioration in bookings. We have also seen a greater than expected decline in ABVs driven in part by bed price deflation and adverse foreign exchange movements.

Looking ahead to the rest of the year, we no longer expect an improvement in the macro travel environment and therefore expect any recovery to be muted. Based on this, and our current visibility of forward-looking bookings, we now expect full year net bookings to be in the range of 20 - 22% of FY2019 (Base Case: 25% of FY2019 / Pessimistic Case: slightly below the Base Case) and net revenue to be in the range of 16 - 18% of FY 2019 (Base Case: 20% of FY2019 / Pessimistic Case: slightly below the Base Case).

Since the Group's equity placing in June, we have continued to actively assess our future funding needs and cost base in the light of continued uncertainty. As at 9 October 2020 the Group's net cash position stands at EUR22.6 million (as at 30 June 2020: EUR29.4million) with monthly operating cash burn EUR2.0m through Q3 which is expected to reduce further in Q4.

Finally, as noted in our interim results we have continued to deploy significant enhancements to strengthen our core platform during Q3 and will continue this progress into Q4. We expect these enhancements will result in strengthened marketing capabilities, an improved user experience and increased inventory competitiveness when normal travel patterns resume.

For further information please contact:

 
 Hostelworld Group plc 
  Gary Morrison Chief Executive        Tel: +353 (0) 1 498 0700 
  Officer 
  Rudolf O'Kane Head of Commercial 
  Finance 
 
 Powerscourt 
  Lisa Kavanagh / Eavan Gannon         Tel: +44 (0) 20 7250 1446 
                                       Email: hostelworld@powerscourt-group.com 
 

About Hostelworld Group

Hostelworld Group, the global hostel-focused online booking platform, inspires passionate travellers to Meet The World, 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 more than 13 million reviews across more than 17,700 hostels in more than 179 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.

Disclaimer:

This announcement may contain forward-looking statements with regard to the financial position and results of Hostelworld's activities. Any forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Many of these risks and uncertainties relate to factors that are beyond Hostelworld's ability to control or estimate precisely. The risks and other factors which may affect financial performance are detailed in Hostelworld's publicly filed annual reports. Any forward-looking statements in this announcement are current only as of the date on which such statements are made. Hostelworld undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation.

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October 15, 2020 02:00 ET (06:00 GMT)