The company also experienced a surge in net gross merchandise value to a record €618.7m, up 32pc from 2022, along with a notable increase in adjusted EBITDA to €18.4m, exceeding guidance for the year.
Despite a significant improvement in profitability, with a profit after tax of €5.1m compared to a €17.3m loss in 2022, Hostelworld reported a decline in cash reserves from €19m to €7.5m at the end of 2023, with net debt decreasing to €12.3m.
Gary Morrison CEO of Hostelworld said “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 Ebitda, which exceeded our guidance range of €17.5m-€18.0m,” “We have started 2024 with strong momentum, and I feel confident that we will continue our track record of profitable growth and value creation for our shareholders,” he added.
Goodbody analyst Dudley Shanley said “the results show clear evidence that the Hostelworld Group business model is delivering in terms of increased market share, increased operating leverage and increased cashflow generation”.
Hostelworld, an online travel agent based in Dublin, achieved record-high revenues of €93.1m in 2023, marking a significant 34pc increase from the previous year.
The company also experienced a surge in net gross merchandise value to a record €618.7m, up 32pc from 2022, along with a notable increase in adjusted EBITDA to €18.4m, exceeding guidance for the year.
Despite a significant improvement in profitability, with a profit after tax of €5.1m compared to a €17.3m loss in 2022, Hostelworld reported a decline in cash reserves from €19m to €7.5m at the end of 2023, with net debt decreasing to €12.3m.
Gary Morrison CEO of Hostelworld said “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 Ebitda, which exceeded our guidance range of €17.5m-€18.0m,” “We have started 2024 with strong momentum, and I feel confident that we will continue our track record of profitable growth and value creation for our shareholders,” he added.
Goodbody analyst Dudley Shanley said “the results show clear evidence that the Hostelworld Group business model is delivering in terms of increased market share, increased operating leverage and increased cashflow generation”.
