Hostel group sees bookings rise 6%

Hostel group sees bookings rise 6%

Shares in Dublin-headquartered accommodation booking company Hostelworld jumped by as much as 3% on the back of it reporting a 6% increase in total bookings for 2017 and saying its annual earnings should meet its targets, writes Geoff Percival.

In a pre-close trading update, ahead of the publication of its annual results in April, Hostelworld said bookings via its flagship brand increased by 13% in the year, with second-half growth of 6% noted. Further progress was made on the group’s mobile strategy, with mobile, including tablets, now representing more than 54% of total group bookings. In 2016, mobile accounted for 47% of total bookings.

While overall growth was up, the second half of last year saw more modest growth, with bookings only up 1% year on year. Nevertheless, the company said it remains upbeat about prospects for 2018.

“We are pleased with the performance of the business in 2017,” said chief executive Feargal Mooney.

“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 executive well on our strategy and this positions the group well to make further progress in 2018.”

Davy analysts said: “Confirmation that Hostelworld’s results for 2017 were in line with expectations means that it has now delivered high single-digit constant currency earnings growth in both 2016 and 2017 despite evidently changing conditions.

“We expect net revenue of €86m for 2017, up 7% from €80.5m in 2016,” they added and adjusted EBITDA of €25.5m, up 6% from €23.9m in 2016.

More in this Section

Fears of new banking charges scandal as interest may have been overcharged on insurance productsFears of new banking charges scandal as interest may have been overcharged on insurance products

Corporate tax windfalls remain a puzzleCorporate tax windfalls remain a puzzle

Expansion costs hit profits at three time Oscar-nominated Cartoon Saloon animation studiosExpansion costs hit profits at three time Oscar-nominated Cartoon Saloon animation studios

Tariff and quota-free trade between Ireland and Britain must remain – VaradkarTariff and quota-free trade between Ireland and Britain must remain – Varadkar


Lifestyle

Kate Tempest’s Vicar Street show began with the mother of all selfie moments. The 33 year-old poet and rapper disapproves of mid-concert photography and instructed the audience to get their snap-happy impulses out of the way at the outset. What was to follow would, she promised, be intense. We should give ourselves to the here and now and leave our phones in our pockets.Kate Tempest dives deep and dark in Dublin gig

Des O'Sullivan examines the lots up for auction in Bray.A Week in Antiques: Dirty tricks and past political campaigns

Following South Africa’s deserved Rugby World Cup victory I felt it was about time that I featured some of their wines.Wine with Leslie Williams

All your food news.The Menu: Food news with Joe McNamee

More From The Irish Examiner