Updates

Hostelworld

September 2021

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.

A weak set of financials is no surprise to see at Hostelworld, which saw a 73% plunge in booking volumes to 0.3m in H1 21. Consequently, although average booking values (ABV) were up 20% because there were longer average stays, H1 sales collapsed to €2.9m (versus €12.1m in H120 and €38.8m in H1 19). Costs remained well within control, with marketing at €2.4m and staff/other costs at €10.2m, to leave an adjusted EBITDA loss of €9.7m and a loss per share of 17 cents.It needs intercontinental travel to return to “business as usual” before demand for hostels really comes back and meanwhile cash burn is running at around €1.9m a month. They could become a high grade recovery buy in months t ...

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Hostelworld (February 2021)

Hostelworld (April 2020)

Hostelworld - Results due 4 March (February 2020)

Hostelworld - Expects recovery next year (November 2019)

Hostelworld (May 2019)

Hostelworld - Bookings in the palm of their hands (February 2019)

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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