Bonus pay rises 12-fold at online firm
Accounts filed with the Companies Office show that Dublin-based hostelworld.com chief executive Feargal Mooney, along with three other executives, shared the €607,000 bonus payments after the company behind the site increased operating profits by 19%, from €7.6m to €9.1m, in the 12 months to the end of December last.
The holding firm which operates hostelworld.com, H&F Wings Lux 1 SARL, recorded a pre-tax loss of €15.3m last year after finance expenses of €24.4m are taken into account. This loss followed a pre-tax loss of €15.9m in 2010
Hostelworld.com is a global leader in the provision of software that facilitates hostel, B&B, and hotel accommodation bookings worldwide.
According to the directors’ report, “the group plans to continue to focus on providing software and data processing services, and anticipates increased revenues from continued expansion within worldwide markets”.
Hostelworld.com’s parent, Web Reservations International, was purchased for over €200m in 2010 by a US private equity firm, Hellman & Friedman Capital Partners.
Net revenues at hostelworld.com’s Luxembourg-based holding firm increased by 14%, from €42.1m to €46m, in the 12 months to the end of December last.
The figures show that the firm’s operating profit takes account of non-cash depreciation and amortisation costs of €13.2m.
The filings show that overall pay for hostelworld.com’s management team of Mr Mooney, chief financial officer Mari Hurley, chief technology officer John O’Donnell, and chief commercial officer Sanjay Balakrishnan (who was hired in May 2011) increased by 127%, from €639,697 to €1.44m.
Last year’s pay for the executives totalled €1.44m, which includes €792,917 in salaries, €607,000 in bonuses, and €46,135 in benefits and payroll taxes.
The firm had net liabilities of €31.5m at the end of December last and in a note, it states that Hellman & Friedman has committed to continue providing financial support to the company for the foreseeable future.
The figures show that the numbers employed by the firm last year increased from 103 to 115, with staff costs rising by 34.5%, from €6.1m to €8.3m.
A breakdown of the firm’s revenues show that 67%, or €31.1m, were generated in Europe with 17%, or €7.7m, of revenues generated in the Americas, and the remaining €7.3m generated in Asia, Africa, and Oceania.
The firm was established by IT entrepreneur Ray Nolan and hostel owner Tom Kennedy in 1999. Mr Nolan led the company until 2008 when Feargal Mooney took over as CEO.
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