HSW Hostelworld Group Plc

LEI:213800OC94PF2D675H41

Date: 26 September 2024

Correction - Interim Management Report

This announcement replaces the Interim Results 2024 announcement released at 07.00 on 08 August 2024 under RNS No. 6290Z. The Interim Management Report included in the announcement did not, owing to administrative error, include a responsibility statement.  The responsibility statement is now included within the Interim Management Report and is reflected below. All other text remains unchanged.

Hostelworld Group plc ("Hostelworld" or the "Group" or the "Company")

Interim Results 2024

Strong bookings growth, FY Adjusted EBITDA guidance in line with expectations

Hostelworld is pleased to provide an update on trading up to 30 June 2024 ("H1").

Strong financial delivery continued in H1 2024:

·      Continuing growth in net bookings, a record half-year for Asia and Central America

·      Social strategy continuing to deliver, with direct marketing as a % of revenue¹ at the low end of guidance range

·      Continuing to maintain cost discipline, underpinning significant Adjusted EBITDA growth

·      Highly cash generative business model, AIB term loan facility and RCF repaid early and in full

Well positioned for further profitable growth:

·      Continuing investment in our social network strategy driving growth in penetration and usage​

·      App bookings growth continuing to outpace Web, delivering marketing efficiencies to fuel future growth​

·      Growing hostel supply, with market coverage increasing 3% year on year

·      Reiterating FY 2024 Adjusted EBITDA guidance in line with market consensus²

Financial highlights:

·      Net bookings of 3.7m (+9% year on year) driven by record performances in Asia and Central America

·      Net average booking value of €13.60 (-10% year on year) driven by a greater proportion of Asian destination bookings and a slight increase in the proportion of solo customers

·      Net revenue of €46.4m (+1% year on year) reflecting the drivers above

·      Direct marketing as a percentage of revenue¹ totalled 45%, down 6% from 51% in H1 2023, driving net margin growth of +23% year on year

·      Proportion of bookings from social members increased to 80% (66% in H1 2023)

·      Operating costs³ of €12.5m, (-2% year on year)

·      Operating profit for the period €4.0m compared to a loss of €1.7m in H1 2023 (+335% year on year)

·      H1 2024 adjusted EBITDA €9.6m compared to €5.1m in H1 2023, (+88% year on year), representing an increase in adjusted EBITDA margin from 11% to 21%

Balance sheet and cash flow:

·      30 June 2024 cash balance of €5.0m (31 December 2023: €7.5m)

·      Net debt⁴ position of €2.6m (31 December 2023: €12.3m)

·      Commenced repayment of warehoused payroll taxes to Irish Revenue, €7.6m outstanding (31 December 2023: €9.6m)

·      Net asset position of €62.6m (31 December 2023: €59.2m)

Gary Morrison, Chief Executive Officer, commented:

"I am very pleased to report strong growth in net bookings (+9% YoY) and even stronger growth in net margins (+23%), primarily driven by our highly differentiated social strategy. This performance, coupled with operating cost discipline, has translated directly into strong operating cashflow enabling us to fully repay our residual debt facility with AIB, two years ahead of schedule.

In parallel, I am also pleased to report that we made good progress during H1 on all aspects of our growth strategy. We have continued to provide our customers with enhanced social network product features, added more hostel inventory to our platform, and have continued to upgrade our platform towards a fully cloud native architecture.  In respect of delivering on our key sustainability strategic goals, we launched our 'Staircase to Sustainability' platform to deliver ongoing sustainability improvements in the hostel industry."

Trading update

During the first 6 months of the year, net bookings grew +9% YoY driven by strong consumer demand for low-cost destinations. This trend was driven primarily by strong growth in net bookings made by UK customers and European customers, travelling to lower cost destinations in Asia and resulted in significant growth in lower ABV net bookings. Consequently, higher cost ABV net bookings to destinations in Europe reduced YoY.

Strong consumer demand for lower cost destinations for the half year overall has resulted in ABVs contracting by 10% YoY (H1 2024: €13.60); driven by the reduction in average bed prices on a booked basis. Over the balance of the year, we expect to continue to see strong customer demand for lower cost destinations in Asia and other regions resulting in lower ABVs YoY and revenue growth lower than net bookings growth on a full year basis.

We are pleased to report that marketing cost as a percentage of revenue¹ has also reduced from 51% in H1 2023 to 45% in H1 2024, primarily driven by our social strategy. This highly differentiated strategy drives new and existing customers to use our mobile native app. This has resulted in a greater mix of low-cost bookings overall, which in turn has delivered a 23% increase in net margin YoY. On a full year basis, we expect direct marketing costs as a percentage of revenue¹ will remain in the 45% to 50% range as we continue to optimise marketing investments for long term growth in new customers and direct margin.

Finally, we have seen continued robust momentum in operating cash performance, with cash generation of €12.4m in H1 2024 (H1 2023: €10.8m), driven by the strong cash conversion characteristics of our business model. This strong performance has enabled the early repayment of the remaining AIB debt facility, well ahead of schedule, which represents another positive milestone for the business. Furthermore, we continue to deleverage the balance sheet having commenced the repayment of warehoused payroll taxes to the Irish Revenue Commissioners. Our financial position has been significantly strengthened as a result, with a reduction in our net debt⁴ from €12.3m as at 31 December 2023 to €2.6m as at 30 June 2024.

¹Revenue is generated revenue - gross revenue less cancellations and excludes impact of deferred revenue

²Company compiled market consensus FY 2024 adjusted EBITDA is €21.4M as of 07 August 2024

³Operating costs exclude paid marketing costs, credit card fees, exceptional costs, share option charges, depreciation and amoritisation

⁴Net debt is cash less outstanding debt, including term loan, revolving credit facility and warehoused payroll taxes

Outlook:

The Board remains confident in our differentiated growth strategy and reaffirms our full year earnings guidance of adjusted EBITDA in line with market consensus, absent any deterioration in the macro-economic climate or the occurrence of significant air travel related disruptions.

Date of retirement of Mr. Michael Cawley as Chair (Date change from 02 May 2024 RNS announcement):  

Following a change to the date of the scheduled October 2024 Company Board meeting from 21 October to 10 October, with effect from the close of the 10 October 2024 Board meeting, Mr. Michael Cawley will step down from the Board and Mr. Ulrik Bengtsson will assume the role of Chair of both the Board and the Nomination Committee.

Analyst Presentation

A presentation will be made to analysts today at 9.00am, a copy of which will be available on our Group website: http://www.hostelworldgroup.com.

If you would like to dial into the presentation, please join directly via the webcast link provided or contact Sodali & Co on the contact details provided below.

Webcast link: https://brrmedia.news/HSW_IR24

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                              +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 230 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 'Funding 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.

Cautionary statement

This interim management report has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Hostelworld Group plc and its subsidiary undertakings when viewed as a whole.

Chief Executive's Review: Gary Morrison

Throughout the first half of the year, we have continued to execute our highly differentiated growth strategy as outlined in our Capital Markets Day presentation in November 2022, commensurate with our Company Mission to "help travellers find people to hang out with".

Executing our growth strategy

At its core, our ground-breaking social network leverages our customer booking data to create online hostel and city-based chat rooms, populated by customers with overlapping stay dates, accessible via our iOS and Android apps. Customers use these chat rooms and other customer's profiles to make plans and find people to hang out with in destination. These chat rooms are available to customers who have opted into the social platform 14 days before check-in, and close 3 days after check-out.

Since launching our social network in Q2 2022 we have seen penetration steadily increase, with now over 80% of all of our bookings being made by social members in the first half of this year (+14% YoY). Moreover, we have also seen a steady increase in usage, with growth in messages sent far outstripping growth in bookings made by social members. Overall, our social strategy has not only driven strong growth in net bookings and market share since launch but has also driven strong growth in App bookings (+20% YoY) relative to other web channels (+2% YoY), which has served to reduce our marketing expenses as a percentage of generated revenue over time.

Over the course of H1 2024 we have continued to innovate and strengthen our differentiated social network value proposition with upgrades to customer profiles and chat features. We've now made it easier for our customers to initiate chats with others through a dedicated pane in our application that exposes the profiles of all travellers in a location with overlapping stay dates. We've also continued to add to the richness of our profile content by incorporating users' Instagram photos within their profiles. Additionally, we have helped our users better signal their interest in socialising through a new "hang out" status within the chat platform, similar to how other instant messaging platforms signal online/offline/away statuses. Over the balance of the year, we will continue to invest in driving more robust profile content, increased profile visibility and higher profile completion rates across our user base. Finally, within the chat product itself we identified a need for customers to be able to create personal group chats on our social network. This feature was released earlier this year, and we continue to refine it. Over the balance of the year, we will continue to build upon our chat functionality, making it easier for customers to discover chat content, especially in cities with very large numbers of daily chat users.

In parallel to the ongoing work on our social platform, we have continued to streamline our new hostel sign up and onboarding processes and improved the LinkUps product for all hostels. The improvements to the sign up and onboarding processes have resulted in a greater number of hostels entering our acquisition pipeline, and a significant reduction in the time and effort to onboard new properties. Collectively this has increased our market coverage from 73% in H1 2023 to 77% in H1 2024. In relation to Linkups, we have continued to invest in this differentiator for our hostel partners, with many smaller features released to make the product easier to use and allowing hostels to upload and display multiple photos of their events within our shopping funnel. Collectively, I am delighted to see that this has encouraged even more hostels to load their event catalogue on to the LinkUps platform; with more than 84% of social members with a booking (in H1 2024) seeing at least one LinkUp that they could attend in a trip, and 73% seeing at least three LinkUps that they could attend in a trip.

More generally, our overarching objective with regards to our hostel partners is to ensure we deliver them the most profitable customers at market leading commission rates and provide them with the tools to showcase the very best of what they offer through our LinkUps and our 'Staircase to Sustainability' platforms.

To that end, we have expanded our B2B marketing programs to educate and inform, both new and existing hostel partners, on how to get the most from the platform, with Hostelworld conferences in Chiang Mai in April this year, and additional conferences planned in Copenhagen and Mexico City in Autumn. In addition to these conferences, we have both sponsored and hosted numerous events around the world over the last six months and delivered multiple webinars in all major languages and geographies. Finally, we continue to send our global markets team on market visits to meet our hostel partners in person and provide detailed guidance on how to use the tools/features of our platform to maximise their business with us.

Investing in our platform

Over the last 6 months, we have continued to build key services on our platform with application level "on demand" scaling, a flexible microservices based architecture, and more opportunities to use off the shelf services from our cloud services provider. These services include state of the art artificial intelligence and machine learning optimisation engines, which are now powering some of our key services. Our current focus is on the migration of our core inventory availability and pricing services to this new architecture, which we expect to have completed by year end.

Leveraging our cloud-native architecture has allowed us to make good progress towards our goal of transitioning our infrastructure from periodic manual configurations to infrastructure as code. This moves towards eliminating single points of failure and dramatically improves the scalability and resilience of our systems, in addition to reducing our hosting cost.

Progressing our ESG agenda

In parallel with helping millions of travellers around the world to find people to hang out with, we are also committed to building a better world in everything we do.

As noted over the last two years in letters to shareholders, we continue to see growth in the importance of sustainability to all stakeholders in the travel ecosystem. Within the hostelling category, we not only see the majority of young travellers indicating that a hostel's sustainability credentials play a role in deciding where to stay, but also actively choosing to stay in hostels over other accommodation types given their favourable sustainability credentials. In parallel, we also see our hostel partners investing in more sustainable operations, coupled with a strong need for a sustainable management system which both aligns to travel industry standards and allows them to showcase their sustainability practices. More broadly, across travel and other categories, we also see increasing demands for companies not only to do more to address the risks of climate change, but also provide more granular disclosures around their efforts for the same.

We continued our collaboration with Bureau Veritas to refresh the calculation of scope 1 and 2 emissions of a representative group of hostels (+24 % YoY) and compared these with the publicly available emissions data from a representative group of hotel chains. The second edition of this report was published in February 2024 and once again indicated that the hostelling category emits significantly less (-82%) scope 1 and scope 2 emissions (tCO₂e) on a per bednight basis compared to a 1-night stay in a typical hotel chain. Furthermore, the analysis also indicated that the sustainability gap between hostels and hotels has widened still further YoY, with hostels reporting a YoY reduction in average emissions whilst the YoY emissions from the hotels analysed shows an increase.

Our work over the last six months has focused on growing our sustainability improvement framework for the hostelling industry. As noted in my shareholder communications from last year, we have made a significant investment to build this sustainability framework for the hostelling industry in early 2023, with three specific objectives in mind.

1.     The framework had to be anchored in GSTC standards to ensure that the sustainability classifications it generated were robust, traceable and comparable against any other business in the travel ecosystem;

2.     The framework needed to be appropriate to the needs of smaller business hostel owners, who had reported that existing travel industry sustainability measurement systems were either too costly or time consuming to maintain; and

3.     The framework needed to not only provide the means for hostel partners to showcase their sustainability credentials on our platform, but to also encourage progression towards even more sustainable operations over time.

After almost a year's worth of work, I am delighted to report that we delivered on all three objectives in February this year, with the launch of our 'Staircase to Sustainability' platform. This bespoke sustainability improvement framework comprises a data collection process built into our existing hostel facing extranet portal, logic within our platform to determine a sustainability classification level for each hostel, and the means to display that sustainability classification level as a "badge" throughout our website and mobile native apps. Since launching the 'Staircase to Sustainability' platform, we have seen strong uptake from the hostels on our platform, with over 1,800 hostels having already completed the sustainability assessment process and receiving a classification on platform; and a further 250 in the pipeline. Overall, we are very proud to play our leading role in championing sustainability in the hostel industry, and we are excited to see the impact of this framework in the years to come.

We also champion our own sustainability. For the past three years we have been awarded the 'Funding Climate Action' label, in partnership with South Pole partly due to our elimination and strict control of scope 1 and scope 2 emissions. This year we have partnered with South Pole to perform a detailed review of our scope 3 emissions and set a target for these emissions, which goes beyond the thresholds stipulated by the SBTi for our size of Company. We will report to the market later this year.

In addition to our efforts towards building a more sustainable travel industry, we also seek to build an inclusive, high-performance culture at Hostelworld, and ensure we create a positive impact within the communities we operate in. To that end, over the last six months we have worked closely with Neurodiversity Ireland, the Dyslexia Association of Ireland and the UK National Autistic Society to enhance our employee's understanding and support of Neurodiversity across our business, and thus creating a safe space for open discussions and inclusivity.

In parallel, we have also strengthened our partnership with Teen-Turn, an Irish based charity that helps teenage girls from underserved backgrounds gain experience working in STEM with the aim of leading more women into tech-focused qualifications and careers. We are delighted to have welcomed program participants to our business on summer internships.

Summary

Over the first six months of this year, we have continued to demonstrate the capacity of our social strategy to drive profitable growth in market share, and we have continued to tightly manage costs. Taken together, this enabled the Hostelworld team to deliver an 88% increase YoY in adjusted EBITDA, and fully repay our outstanding debt with AIB, two years ahead of schedule. I'd therefore like to take this opportunity to thank each and every one of our employees for their commitment and hard work in delivering these results.

Gary Morrison

Chief Executive Officer

08 August 2024

Financial Review: Caroline Sherry

Highlights 

·      Net bookings of 3.7m (+9% year on year) driven by record performances in Asia and Central America 

·      Net average booking value of €13.60 (-10% year on year) driven by a greater proportion of bookings from low bed price destinations, record half-year for Asia and Central America and, a slight increase in the proportion of solo customers 

·      Net revenue of €46.4m (H1 2023: €45.8m), +1% year on year reflecting the drivers above 

·      Direct marketing as a percentage of generated revenue totalled 45%, down 6% from 51% in H1 2023, driving a net margin growth of +23% year on year 

·      Total operating costs of €42.5m, (H1 2023: €47.6m), -11% year on year driven by a reduction in paid marketing costs

·      Operating profit €4.0m (H1 2023: operating loss of €1.7m), +335% year on year

·      Adjusted EBITDA €9.6m (H1 2023: €5.1m), +88% year on year, with an increase in adjusted EBITDA margin from 11% to 21% 

·      Adjusted earnings per share 6.0 € cent (H1 2023: adjusted loss per share 1.9 € cent) 

·      Closing cash position of €5.0m (31 December 2023: €7.5m) and a net debt position of €2.6m (31 December 2023: €12.3m), AIB debt facility and RCF both repaid in full 

·      Net asset position of €62.6m (31 December 2023: €59.2m)

Revenue and operating profit  

Net bookings totalled 3.7m, an increase of 9% compared to H1 2023 (H1 2023: 3.4m) driven by strong growth in Asia and Central America. Net ABV, the average value paid by a customer for a net booking was €13.60 which decreased by 10% from H1 2023 (H1 2023: €15.15), driven by a greater proportion of bookings from low-cost destinations, Asia and Central America, and a slight increase in the proportion of solo customers.

Featured listing advertising revenue, revenue generated from hostels advertising on our platform, grew to €0.8m (H1 2023: €0.5m). Reported revenue (net revenue) for the period was €46.4m (H1 2023: €45.8m) after considering deferred revenue, ancillary revenue streams, vouchers, refunds and other accounting adjustments. At 30 June 2024, the Group held €7.1m of customer deposits on its balance sheet relating to bookings made under the free cancellation policy (31 December 2023: €3.4m). This balance will largely unwind in H2 2024.

Operating expenses totalled €42.5m (H1 2023: €47.6m), a decrease of €5.1m year on year. This decrease was driven by a €3.6m reduction in direct marketing costs to €22.9m (H1 2023: €26.5m) with direct marketing costs as a percentage of generated revenue reducing to 45% (H1 2023: 51%). Excluding direct marketing costs and share option charges, operating expenses have reduced by 2% year on year driven by a focus on cloud efficiencies and procurement savings.

Group operating profit amounted to €4.0m (H1 2023: loss of €1.7m), a year on year increase of €5.7m. Adjusted EBITDA of €9.6m (H1 2023: €5.1m) represented growth of €4.5m compared to prior year.  

Exceptional items 

Exceptional items warrant separate disclosure due to their nature or materiality. The Group incurred no exceptional items in the period. Prior period exceptional items primarily relate to costs incurred on refinancing of the HPS facility totalling €3.6m, broken down as €0.7m of early repayment penalty interest, €0.1m of transaction costs relating to exiting the old facility and €2.8m accelerated interest costs which relate to transaction costs capitalised on drawdown of HPS facility in February 2021, which were expected to be amortised over a five-year period to 2026, but unwound in full on refinancing.

Share-based payment 

The Group incurred a total share-based payment expense of €0.9m (H1 2023: €0.9m) arising on the issuance of options in accordance with the Group's Restricted Share Awards ("RSU") and Long-Term Incentive Plans ("LTIP").  

On 22 April 2024, 5,245 shares were issued regarding the 2020 SAYE scheme at €0.01 cent per share, and on 29 April 2024, 1,345,870 shares were issued to satisfy long term incentive plan awards in relation to LTIP 2021. 100% of the performance obligations were satisfied.

On 03 May 2024 a new LTIP plan of 1,909,075 awards was struck for executives and key members of the Hostelworld team. All LTIP and RSU awards are nil cost options.

Current and deferred tax  

The Group corporation tax charge for H1 2024 is €0.1m (H1 2023: €0.1m) relating to our international operations where tax losses from our Irish operations cannot be utilised.  

Deferred tax charge amount to €1.1m (H1 2023: €0.3m), increase year on year relating to an unwind of a deferred tax asset recognised in H2 2023. As at 31 December 2023 the Group recognised a total deferred tax asset of €6.4m relating primarily to COVID-19 trading losses and interest relief which had no expiry date and can be carried forward indefinitely. The asset recognised in the prior year is being unwound to the Income Statement to align to how the tax losses and interest relief is being utilised.

Earnings per share 

Basic earnings per share for the Group was 2.03 € cent (H1 2023: loss per share: 6.23 € cent). Adjusted earnings per share was 6.0 € cent per share (H1 2023 loss per share: 1.9 € cent per share) with the return to profitability, of both metrics, reflective of the business's return to normal trading post COVID-19.  

Finance costs, net debt and financing 

At the balance sheet date, the Group had repaid AIB debt facilities, in full and 2 years ahead of schedule, and had a closing net debt position of €2.6m (31 December 2023: €12.3m).

In May 2023 the Group repaid the €30m facility drawn down in February 2021, during COVID-19, with HPS Investment Partners LLC (or subsidiaries or affiliates thereof) ('HPS'). The Group refinanced with a three-year facility with AIB. This facility was comprised of a €10m term loan which was repaid in full in June 2024 (€1.7m in 2023, €8.3m in 2024), a €7.5m revolving credit facility which was repaid in full in Q1 (€5.5m in 2023, €2.0m in 2024) and an undrawn €2.5m overdraft. At the date of repayment all security and covenant requirements held by AIB were released. The Group continues to hold an undrawn €2.5m overdraft facility with AIB.

The Group incurred €0.3m of finance costs (H1 2023: €5.4m), with interest costs arising on the Group's AIB facility totalling €0.5m, offset by a credit recognised of €0.2m relating to interest on debt warehoused. Prior period expense relates to AIB and HPS finance interest costs. The decrease in costs year on year is attributable to the refinancing completed in May 2023. HPS interest charges, excluding those classified as exceptional which totalled €3.5m, amounted to €1.6m in H1 2023.  

Debt warehoused  

The Group availed of the Irish Revenue Commissioners tax warehousing scheme and warehoused €9.4m by deferring payment of all Irish employer taxes from February 2021 to March 2022. Total amount warehoused at 30 June 2024 was €7.6m (31 December 2023: €9.6m). In 2024 the Group wrote-off €0.2m of an interest charge which related to an announcement by the Revenue Commissioners on 05 February 2024 that the applicable rate of interest on debt warehoused would reduce to 0%.

In May 2024 the Group made an initial payment of 15%, in line with the repayment terms set with the Irish Revenue Commissioners, followed by monthly payments. These monthly payments will continue over a three-year period to April 2027. The Group continues to monitor and comply with the appropriate Revenue guidelines applicable to this scheme.

Development labour 

Total development labour intangible asset additions amounted to €2.4m during H1 2024 (2023: €1.5m). This asset arose due mainly to work completed delivering our social strategy, particularly LinkUps in H1 2024, modernising our platforms, and revamping our hostel activations process to streamline the hostel sign up and onboarding processes. This balance includes internal development labour of €1.5m (H1 2023: €1.1m) relating to staff costs capitalised during the period, and other internally generated additions of €0.9m (H1 2023: €0.4m).

Impact of new accounting standards  

New accounting standards and amendments to existing standards implemented in 2024 did not have a material impact on the Group.  

Related parties         

Related party transactions are disclosed in note 15 to the condensed Group Financial Statements. 

Investor relations 

The Group have a proactive approach to investor relations. The release of our annual and interim results, along with quarterly trading updates, provide regular information regarding our performance and are accompanied by presentations, webcasts and conference calls. In May 2024, an AGM was held providing engagement channels for our shareholders to send advance questions to the Board, with all details relating to the AGM published on the Company's website. 

We held a number of investor roadshows and attended industry conferences. These engagements provided an opportunity for the management team to meet existing and/or potential investors and analysts in a concentrated set of meetings. This direct feedback and input on the investor community's perspective of the Company is reflected upon to ensure that our investor relations communications remain meaningful and effective. 

Principal risks and uncertainties

There are a number of potential risks and uncertainties which could have a material impact on future Group performance and could cause actual results to differ materially from expected and historical results. The Board considers the risks and uncertainties described in detail in the 2023 Annual Report and Financial Statements, published on 02 April 2024, to remain applicable. Any changes to this evaluation and a description of each is set out within the Appendix.

Dividend 

The Directors do not propose an interim dividend in respect of the six months ended 30 June 2024 (six months ended 30 June 2023: €nil). Any payment of cash dividends will be subject to the Group generating adjusted profit after tax, the Group's cash position, any restrictions in the Group's banking facilities and subject to compliance with Companies Act 2006 requirements regarding ensuring sufficiency of distributable reserves at the time of paying the dividend. 

Caroline Sherry  

Chief Financial Officer         

08 August 2024

 Responsibility Statement

Each of the Directors of Hostelworld Group plc (as listed on pages 86 and 87 of the Annual Report and Financial Statements for the year ended 31 December 2023, published on 02 April 2024) confirm that, to the best of each person's knowledge and belief:

1.     The condensed set of Group Financial Statements has been prepared in accordance with United Kingdom adopted International Accounting Standard 34 'Interim Financial Reporting';

2.     The Interim Management Report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

3.     The Interim Management Report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board

Gary Morrison                                                                      Caroline Sherry

Chief Executive Officer                                                       Chief Financial Officer       

08 August 2024                                                                    08 August 2024