Hostelworld (LSE:HSW) Group PLC reported solid growth in full-year bookings and revenue, driven by recovery in Europe and in particular Asia and Oceania in the second half of the year.
Chief executive Gary Morrison said: "After a slow start to the year driven by Omicron, booking demand recovered quickly towards 2019 levels into Europe (our largest destination); with many of our top markets in Southern Europe exceeding 2019 levels over the summer."
"Easing of travel restrictions enabled Oceania and Asia to show strong recovery through the year."
Net bookings in the 12 months to 31 December 2022 totalled 4.8mln, an increase of 228% year on year (2021: 1.5mln), while net revenue for the period totalled €69.7mln, up 312% year on year from €16.9mln.
Adjusted EBITDA of €1.3m compared to a loss of €17.3mln in 2021, while the group reported an operating loss of €13.6mln which narrowed from €33.1mln reported in 2021.
The online travel agent focused on the hostel market noted net revenue growth outpaced net bookings growth, driven by a steady increase in average net booking values.
This was driven primarily by bed price inflation which has been partially offset by a reduction in blended commission rates and higher cancellation rates.
Net average booking value of €14.90 was 23% higher year on year (2021: €12.11), due primarily to bed price inflation.
“We are encouraged by the trends we have seen since the start of the year and believe that the business is firmly on track to deliver the targets for financial year 2023 presented at our Capital Markets Day in November 2022,” the company said in a statement.
Shares of Hostelworld (LSE:HSW) slipped 1.9% in midday trading Wednesday.
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