Updates

Hostelworld - Bank debt, which peaked at €21.2m, now paid off

December 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares may have re-traced to year ago levels but Hostelworld’s Q3 showed continued progress. Although net bookings were tracking slightly behind forecast at +7% or 5.7m with average booking values down 9% to €13.54 due to changing mix towards lower value Asian bookings and more solo travellers, EBITDA grew 28% to €17.8m. EBITDA margins rose sharply from 19.7% to almost 25% as direct marketing costs fell from 51% to just 46% revenue as bookings from Social Members (free from marketing) rose to 80% from 67%. As a result, it’s on track to meet full year expectations. Crucially, bank debt, which had peaked at €21.2m at FY’22, has been paid off and it has cash of €0.9m. The soon-to-be prospective PE of 8.9 (17.1 cents, 14.2 ...

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OntheBeach

Vistry

Hostelworld - Net debt drops to €2.6m (October 2024)

Hostelworld - Results beat even upgraded guidance (May 2024)

Hostelworld - Results beat forecasts, debt down (March 2024)

Hostelworld - Blow-out 43% bookings growth drives upgrades (December 2023)

Hostelworld - New social platform drives 50% forecast upgrade (October 2023)

Hostelworld (October 2022)

Hostelworld (October 2021)

Hostelworld (May 2021)

Hostelworld (March 2021)

Hostelworld (October 2020)

Hostelworld (August 2020)

Hostelworld (May 2020)

Hostelworld (April 2020)

Hostelworld (October 2019)

Hostelworld (June 2019)

Hostelword (November 2018)

Hostelworld (July 2018)

Hostelworld (March 2018)

Hostelworld - 10% rise in bookings (October 2017)

Hostelworld - Largest online provider of hostel accommodation enjoying rapid growth (June 2017)

Hostelworld - Online disruptor for hostels enjoying strong margin growth (May 2017)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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