Hostelworld has reported a €4m operating profit for the first half of its financial year after seeing a 9% increase in net bookings, driven by record performances in Asia and Central America.
The operating profit compared to a €1.7m loss during the same period last year, and the hostel booking platform’s net revenue increased marginally (+1%) to €46.4m
Hostelworld recorded 3.7m net bookings in H1 at an average value of €13.60, which was 10% lower year-on-year, as Asian destinations and solo customers made up a larger proportion of its business.
Direct marketing as a proportion of revenue fell six percentage points to 45%, driving net margin growth of 23%, and operating costs also declined 2% to €12.5m.
Adjusted EBITDA of €9.6m represented an increase of 88% from €5.1m in H1 2023, with adjusted EBITDA margin rising from 11% to 21%.
At the end of June, Hostelworld had a cash balance of €5m, and its …