Trading Statement
Summary by AI BETAClose X
LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group")
Trading Update
Improved Q3 Trading and Solid YTD Performance
Reaffirming FY adjusted EBITDA guidance in line with expectations.
Hostelworld is pleased to provide an update on trading for the nine months up to 30 September 2025 ("YTD").
Key highlights:
Q3 performance demonstrates positive momentum:
· Q3 Generated Revenue¹ grew 5% year-on-year (YoY), driven by a 2% increase in bookings and a 3% rise in Average Booking Value (ABV).
· Performance was boosted by an improved effective commission rate, which increased to 16.3% from 15.2% in Q3 2024, primarily due to the successful adoption of our 'Elevate' marketplace tool.
· Direct marketing costs as a percentage of revenue² totalled 47% in Q3, down from 49% in Q3 2024 and 51% in the first half of 2025.
Year-to-date summary and outlook:
· YTD Net Revenue² was €72.6m. This is broadly flat YoY, reflecting 1% growth in net bookings offset by lower deferred revenue benefits compared to the prior year.
· YTD Adjusted EBITDA for the period was €15.4m with a 21% margin (YTD 2024: €17.8m and 25%), reflecting planned investments in growth initiatives and the timing of deferred revenue.
· The Group maintains a robust balance sheet with a closing cash position of €10.9m and net cash of €6.6m. Share buy-back programme progressing, with £2.2m shares purchased YTD. Progressive dividend reinstated and interim dividend of 0.82€ cent per share paid on 19th September 2025.
· We reiterate our full-year 2025 adjusted EBITDA guidance, which remains in line with the current market consensus³ of €19.8m.
1. Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue
2. Net Revenue is gross revenue less cancellations, deferred revenue, rebates and accounting adjustments
3. Company compiled market consensus FY 2025 adjusted EBITDA is €19.8M as of 09 October 2025.
Gary Morrison, Group Chief Executive Officer, commented:
"Our third-quarter results show that the strategic plan we announced at our Capital Markets Day is delivering positive results.
Revenue grew by 5% YoY. This was supported by a rise in our commission rate to 16.3%, up from 15.2% this time last year, mainly due to our 'Elevate' programme. This increased commission rate boosted our Average Booking Value (ABV) by 3% YoY, which successfully offset the impact of a weaker US dollar and the continued popularity of low-cost destinations. At the same time, our marketing efficiency improved, with costs falling from 49% of revenue in Q3'24 to 47% in Q3'25.
Looking ahead, we are on schedule to launch our social network monetisation and the provision of budget accommodation initiatives in the fourth quarter. The timely delivery of these foundational initiatives is a key step towards delivering our growth strategy, as set out at our Capital Markets Day."
For further information please contact:
Hostelworld Group plc Corporate@hostelworld.com
Gary Morrison, Chief Executive Officer
Caroline Sherry, Chief Financial Officer
David Brady, Head of Commercial Finance
Sodali & Co hostelworld@sodali.com
Eavan Gannon / Oliver Banks Tel: +44 (0) 20 7250 1446
About Hostelworld Group
Hostelworld Group PLC is a ground‐breaking social network powered Online Travel Agent ("OTA") focused on the hostelling category, with a clear mission to help travellers find people to hang out with. Our mission statement is founded on the insight that most travellers go hostelling to meet other people, which we facilitate through a series of social features on our platform that connect our travellers in hostels and cities based on their booking data. The strategy has been extraordinarily successful, generating significant word of mouth recommendations from our customers and strong endorsements from our hostel partners.
Founded in 1999 and headquartered in Ireland, Hostelworld is a well‐known trusted brand with almost 270 employees, hostel partners in over 180 countries, and a long‐standing commitment to building a better world. To that end, our focus over the last few years has been on improving the sustainability of the hostelling industry. In particular, over the last two years we have commissioned independent research to validate the category's sustainability credentials and recently introduced a hostel specific sustainability framework which encourages our hostel partners to move to even more sustainable operations and also provides the data points for our customers to make more informed decisions about where they stay. In addition, our customers are now able to offset their trip's carbon emissions should they wish to do so, and we have maintained our 'Taking Climate Action' label awarded by South Pole.
Disclaimer
This announcement contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of Hostelworld. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Hostelworld's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of this announcement. Except as required by law, Hostelworld undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in this announcement to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made.
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