Mobile growth gives Hostelworld a boost but profits dip

Mobile growth gives Hostelworld a boost but profits dip

A rise in mobile bookings helped contribute to a 16% rise in first half bookings to three million at Hostelworld.

However, overall adjusted group profit after tax declined by more than €1 million to €7.7 million.

Total group bookings fell to 3.5 million from 3.6 million in the six months to June 20 amid “more difficult market conditions”.

Total transaction values declined to €284 million from €339 million in the same period last year.

The group’s core Hostelworld brand saw bookings growth of 16% but the group’s average booking value was 6% lower.

Bookings on mobile devices now represent 45% of Hostelworld brand bookings, up from 36% in the first half of 2015.

Chief executive Feargal Mooney said: “The core Hostelworld brand has delivered strong growth in the first half of the year against a background of more challenging market conditions, particularly in Europe as a consequence of a number of terrorist attacks in key European destinations.

“Reflecting a key strategic focus of the group on the Hostelworld brand and more profitable channels and to discontinue lower margin business, bookings in our supporting brands now represent just 15% of the group total.”

He added: “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.”

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