Online travel agency Hostelworld Group has traded ahead of expectations, thanks to an increase in demand for travel in Asia.
The Irish company, which is listed in London, said adjusted EBITDA reached €18.4m (£15.7m) up from €1.3m (£1.1m) in the same period last year.
Full year net bookings totalled over six million, an increase of 37 per cent year-on-year.
Meanwhile, net gross merchandise value (GMV) grew by 32 per cent to €618.7m (£528m). The firm also reported a decline in operating costs.
Hostelworld was hit hard when the pandemic arrived as international travel ground to a halt. Its shares crashed from 240.09p in April 2019, to 49p in March 2020.
Since September 2022 when most pandemic restrictions had been lifted, investors became more confident, with the firm’s share price steadily rising to 173.25p, today. In the last year alone, it has risen by 19.48 per cent.
Gary Morrison, chief executive officer, Hostelworld Group said: “I am very pleased to report another strong year of strategic progress for Hostelworld, which is reflected in our results.
“Over 2023 we grew market share, delivered record revenues, and increased operating leverage through a combination of reduced marketing spend, as a percentage of revenue, and continued operating cost discipline to deliver €18.4m (£15.7m) EBITDA, which exceeded our guidance range of €17.5m (£14m) – €18.0m (£15m).
“This operational delivery coupled with the strong cash conversion characteristics of our business model and a new €17.5m (£14m) facility agreed with Allied Irish Banks, in May 2023, enabled us to strengthen our balance sheet and reduce our finance costs.”
He added: “As of February 2024, we have repaid in full the €7.5m (£6.4m) revolving credit facility drawdown with AIB. Interest on the remaining term loan is charged at 2.65 per cent over EURIBOR.
“I am also proud to report that the group continues to progress its ESG agenda and in particular the recent launch of our ‘Staircase to Sustainability’ framework with the Global Sustainable Tourism Council.”
“This framework will help our hostel partners to promote the inherent sustainability advantages of their hostel accommodation.”
Looking ahead, the firm said it is “strongly positioned to deliver against our medium-term financial commitment”, made in November 2022.