Hostelworld Group has announced a significant increase in revenue for the third quarter, leading to an upward revision of its adjusted Ebitda guidance for the full year.
Impressive Revenue Growth
In Q3, the company's revenue soared by 38% to €75.2 million ($79.5 million). Additionally, the net gross transaction value of bookings less cancellations, which is the company's preferred metric, saw a 38% increase to €496.4 million.
Upgraded Earnings Guidance
Based on its strong performance, Hostelworld Group now expects its adjusted earnings before interest, taxes, depreciation, and amortization for the full year to be within the range of €17.5 million to €18 million. This is an upgrade from its previous guidance range of €16.5 million to €17 million.
Factors Influencing Net Average Booking Value
While the net average booking value experienced a 4% decrease to €14.94, Hostelworld Group attributes this decline to a higher proportion of bookings in Asian destinations. However, this was partially offset by continued bed price inflation.
Continued Growth and Recovery
Despite the challenges posed by the pandemic, Hostelworld Group witnessed a 43% YoY increase in net bookings, reaching a total of 5 million bookings. All regions experienced continued growth, with southern Europe, Asia, and Oceania destinations surpassing pre-pandemic levels.
Confidence in Future Growth
Chief Executive Gary Morrison expressed his confidence in the company's asset-light business model and its ability to generate long-term profitable growth and create value for shareholders.
Hostelworld Group's shares rose by 3.8% to 122.50 pence as of 0706 GMT.
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