Hostelworld profits slide as terrorist attacks take toll
Published 23/08/2016 | 07:38
A number of challenging market conditions, including terrorist attacks across Europe, caused profits at Irish firm Hostelworld to slide.
Profits at the company fell to €7.7m during the first six months of the year, down €1.1m on the same period last year.
Revenue at the firm also fell to €40.2m, however earnings before interest tax depreciation and amortisation (EBITDA) improved to €10.1m.
Groupwide bookings at the group increased by 16pc with brand bookings in the Asian markets improving by 30pc.
Despite the fall in revenue, the company said it is still on-track to meet expectations for the full year.
Hostelworld chief executive Feargal Mooney said the company is looking toward more profitable channels with supporting brands representing 15pc of total bookings.
"Trading during the key months of July and August has been in line with our expectations, underpinned by the strength of our brand and platform.
"We will continue to manage the risks to our business posed by the impact of terrorist attacks on travel demand and patterns and by macro-economic uncertainties and currency fluctuations surrounding Brexit and, based on performance for the year to date, our expectations for the full year are unchanged," he said.