Hostelworld Group PLC shares fell 11% on Thursday after the hostel booking platform reported flat first-half bookings and net revenue, with adjusted EBITDA down to €7.4 million from €9.6 million a year earlier.
While trading was broadly in line with guidance, net average booking value slipped 1% year on year and direct marketing spend rose to 51% of revenue, up from 45% last year, reflecting higher costs in paid channels.
Management flagged record growth in Asia and noted that European booking volumes and prices improved in June after a slow start, but ongoing price deflation in Europe and continued consumer focus on low-cost destinations have pressured margins.
The group closed the half with €11 million in cash and reaffirmed full-year earnings guidance.
Despite the announcement of a £5 million share buyback and a return to paying dividends, investors were unsettled by weak profit trends and the cautious outlook.
The shares fell 15.61p to 125.9p