Following a strong Q3 performance, London-listed Hostelworld Group has revised its full-year adjusted Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance upwards. The online hotel-booking firm reported a 38% YoY (Year on Year) increase in revenue to 75.2 million euros ($79.5 million) for the third quarter, alongside a similar rise in net gross transaction value of bookings less cancellations to 496.4 million euros.
The company now expects its full-year adjusted Ebitda to be between 17.5 and 18 million euros, an increase from the previous estimate of 16.5 to 17 million euros. This revision comes despite a slight decrease in net average booking value by 4%, attributed to an increase in Asian destination bookings and bed price inflation.
In contrast, net bookings saw a substantial rise of 43%, reaching 5 million. This growth was primarily driven by increased demand for destinations in Southern Europe, Asia, and Oceania.
CEO Gary Morrison expressed confidence in the company's asset-light business model, which he suggests is highly differentiated within the industry. This sentiment appears to be shared by investors, as evidenced by a 3.8% increase in share price to 122.50 pence following the announcement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.