Bookings growth up 6pc at Hostelworld
Online hostel booking business Hostelworld has said that it expects its 2017 earnings to be in line with its board’s expectations.
In a trading update today, the Dublin and London-listed company said that the group had delivered 6pc overall bookings growth for the year.
While no actual figures were provided in the update, Davy analysts predict that the company will report revenue of around €86m for 2017, an increase of 7pc on the €80.5m of revenue in 2016.
Bookings growth in the second half was, as the company had anticipated more modest, up just 1pc on the same period in 2016.
Bookings on its flagship Hostelworld brand increased by 13pc year-on-year, while Hostelworld’s gross average booking value for 2017 was €11.5, flat on the prior year, and up 2pc on a constant currency basis.
"During the second half of the year we delivered an efficient booking mix with marketing costs for the full year marginally lower than our previously guided range. We continue to execute well on our strategy and this positions the group well to make further progress in 2018," Feargal Mooney, chief executive of Hostelworld, said.
In addition, the group said that its business model continued to generate "excellent" free cash flow, resulting in a strong balance sheet at the year end.
The company said that it continued to make good progress in its mobile business, with mobile (including tablet) now representing over 54pc of group bookings for the year, up from 47pc in 2016.
In December Hostelworld announced that its chief financial officer Mari Hurley was to step down to "pursue a new opportunity outside the group".
Ms Hurley will leave Hostelworld during the first half of 2018.
The group’s preliminary results for the year ended 31 December 2017 which will be announced on 10 April.