Dublin-based accommodation booking platform Hostelworld has released its interim results for the six month period that ended on June 30, 2020, revealing that its net revenue declined by 69% year-on-year during the period to €12 million due to the COVID-19 crisis.
Meanwhile, total group net bookings declined by 67% year-on-year; net booking volume declined from 3.5 million to 1.1 million, with cancellations of €5.4 million; net average booking value declined €2.95 year-on-year to €9.45; and the company experienced an adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of €8.3 million.
"Significant Trading Disruption"
Hostelword CEO Gary Morrison stated, "“The COVID-19 pandemic has resulted in significant trading disruption for our business and the global travel industry. From the outset, our focus has been the well-being of our employees, to support our hostel partners and customers, and to strengthen the group's balance sheet. We entered the year in a strong position, having delivered a return to net bookings growth during Q4 2019, however, COVID-19 drove a sharp reduction in our trading performance. We reacted swiftly and purposefully to protect the business, and to enable us to navigate through this crisis. Our initial efforts were focussed on cash preservation, and, in June, we took action to strengthen our balance sheet via a debt facility and an equity raise. Together, these actions provide the group with the financial strength to operate through this crisis and beyond.
"Over the last few months, we have taken the opportunity to accelerate our roadmap for growth programme to strengthen our core platform, completing items planned for H2 2020 and 2021 ahead of schedule. Consistent with our growth strategy, which builds on our roadmap for growth, we also intend to broaden the catalogue of experiences and social features we offer our customers beyond hostel accommodation. Given the current trading backdrop, we remain focussed on organic initiatives in the near term until a resumption of normal trading.
"While the short-term outlook for the travel industry remains extremely challenging, I remain confident that Hostelworld will emerge from the COVID-19 crisis stronger than before. I would like to take this opportunity to thank all of our employees for their continued hard work and commitment, and our customers and shareholders for the support they have shown through these challenging times."
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.