Hostelworld Dividends - HSW

Hostelworld Dividends - HSW

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Stock Name Stock Symbol Market Stock Type
Hostelworld Group Plc HSW London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
6.50 6.95% 100.00 16:35:06
Open Price Low Price High Price Close Price Previous Close
94.50 94.50 100.00 100.00 93.50
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Industry Sector

Hostelworld HSW Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

sphere25: Caught a nice move here on the back of some heavy buying recently. It's on some odd thread though HSW.L I think it is. Someone is in the market trying to buy in size quietly here, working the book at 81p and 82p on the book with a 2111k order. Whether that is sufficient to clear sellers and cause another pop higher remains to be seen, but we will find out soon. Clearly the sector has been motoring and there are all kinds of bullish noises with TUI reporting bookings up on pre covid and MNZS receiving a lovely approach too. Perhaps HSW will eventually break out for another trade. But something of note. Elsewhere: PHC is attracting heavy interest, don't know alot about that one though. High risker for sure looking at news, even more important to use stops. How many has Griffiths got to lob though? HSS 9m mopped up yesterday at 17p. Should be Tosca that leaving them somewhere around 15m-16m. Watch for the last amounts to get placed. ADF motored beautifully, consolidation time perhaps before another leg higher? MER - breaking higher, that got tipped like ADF. Happy days! JOUL - Continued heavy daily buying, someone is being opportunistic trying to clear the likes of Blackrock out. Very risky one but a trade for the nimble folk, trying to ride it to 70p - find out tomorrow. WRKS - decent interest today, looks like it could be popping gradually higher if sellers at this 69-70p mark can be cleared Some nice moves about offsetting the duffers. All imo DYOR
squeamish1: My six monthly look at HSW as I see they announced results. News to me that they raised cEUR30m debt at 9% margin - I thought the whole point of the model was they could run their platform with a limited cash burn. They're basically a website with a bookings database in the background - I don't understand how there's so much fixed cost. A shame.
baggies12: Should have said 2022 not 2023, even so next couple of years should be very good for HSW and you'd think recovery imminent.
jp2011: The bonus issue is really a script dividend which is earnings dilutive. Seems a pointless exercise but it allows the MMs to mark the price up and offload stock. This isn't going to move until travel starts up again.
masurenguy: Interim Results 2020 H1 2020 in line with expectations; modest increase in bookings in recent weeks in line with the easing of travel restrictions. Accelerated delivery of Roadmap for Growth initiatives 12 August 2020: Hostelworld, a leading global OTA focused on the hostel market, is pleased to announce its interim results for the period ended 30 June 2020 Financial highlights: -- Net revenue of EUR12.0m in H1 2020, a decline of 69% (H1 2019: EUR38.8m), driven by COVID-19 led travel restrictions from late Q1 -- Total Group net bookings decline of 67% (H1 2019: -10%) -- Net booking volume decline from 3.5m to 1.1m, with cancellations EUR5.4m (H1 2019: EUR4.8m) -- Net Average Booking Value EUR9.45 (H1 2019: EUR12.40), reflecting increased cancellations which had longer lead times and higher ABVs -- Marketing costs in Q2 reduced to match revenue volumes. Total H1 2020 marketing costs of EUR7.5m were 76% of net revenue (excluding deferred revenue), an EUR8.8m reduction compared to H1 2019 (H1 2019: EUR16.2m, 37%) -- Q2 operating costs, excluding marketing overheads, reduced by 20% to EUR5.5m, down from EUR6.9m in Q1 2020 (14% reduction compared to EUR6.6m in Q2 2019) -- Adjusted EBITDA loss of EUR8.3m (H1 2019: EUR8.9m profit), in line with guidance -- Basic loss per share of 18.90 EUR cent (H1 2019 basic earnings per share: 6.82 EUR cent) Balance sheet and cash flow: -- Raised gross proceeds of EUR15.2 million ([1]) through a non-pre-emptive placing of and direct subscription for new ordinary shares in June 2020 -- Committed EUR7m three-year revolving credit facility secured, undrawn as at 30 June 2020([2]) -- Closing cash position EUR32.9m (H1 2019 EUR25.4m) includes cash on hand of EUR29.4m and a EUR3.5m short-term financing facility -- Customer deposits related to bookings made under the free cancellation policy amounted to EUR3.3m (H1 2019: EUR7.3m), of which EUR2.7m relate to bookings already cancelled -- Adjusted free cash absorption (33%), (H1 2019 adjusted free cash flow 108%) -- Cash dividends for 2020 remain suspended due to COVID-19 uncertainty. In lieu of a cash dividend the Board is proposing to issue new ordinary shares, by way of bonus issue, to shareholders based on a value of 1.0 EUR cent per share and subject to shareholder approval -- It is the intention that the number of shares that a shareholder will need to hold to qualify for each new bonus issue share will be calculated by dividing the prevailing average share price (in EUR cent) prior to the publication of the shareholder circular by 1.0 EUR cent. The record date for the bonus issue will be set out in the shareholder circular Gary Morrison, Chief Executive Officer, commented:"The COVID-19 pandemic has resulted in significant trading disruption for our business and the global travel industry. From the outset our focus has been the wellbeing of our employees, to support our hostel partners and customers and to strengthen the Group's balance sheet. We entered the year in a strong position, having delivered a return to net bookings growth during Q4 2019, however, COVID-19 drove a sharp reduction in our trading performance. We reacted swiftly and purposefully to protect the business and to enable us to navigate through this crisis. Our initial efforts were focussed on cash preservation and in June we took action to strengthen our balance sheet, via a debt facility and an equity raise. Together these actions provide the Group with the financial strength to operate through this crisis and beyond. Over the last few months we have taken the opportunity to accelerate our Roadmap for Growth program to strengthen our core platform, completing items planned for H2 2020 and 2021 ahead of schedule. Consistent with our growth strategy, which builds on our Roadmap for Growth, we also intend to broaden the catalogue of experiences and social features we offer our customers, beyond hostel accommodation. Given the current trading backdrop, we remain focused on organic initiatives in the near term, until a resumption of normal trading. While the short-term outlook for the travel industry remains extremely challenging, I remain confident that Hostelworld will emerge from the COVID-19 crisis stronger than before. I would like to take this opportunity to thank all of our employees for their continued hard work and commitment, and our customers and shareholders for the support they have shown through these challenging times." Trading update and outlook: In recent weeks we have seen an increase in demand as travel restrictions have eased, and we are tracking slightly ahead of our Base Case scenario. This recovery started with very modest growth in domestic bookings in June, and more recently has progressed to very modest growth in domestic and short-haul bookings into Europe. Overall, we expect the pace of recovery to mirror changes in travel guidance in individual markets over the coming months, both positive and negative. Elsewhere, source markets in the Americas, Asia and Oceania continue to remain very depressed. As the recovery has progressed, we have seen a steady reduction in cancellation rates, and an increase in conversion rates as consumers certainty with respect to their travel plans has improved, compared to significantly stressed levels during Q2. This has led to higher marketing costs as a percentage of net revenue in the near term, which we expect to gradually normalise as normal travel patterns resume. On the supply side, despite significantly depressed demand during Q2, we have seen only a modest reduction in the number of hostels on our platform compared to year end 2019 levels. We are also working with the hostelling industry to ensure we display details of the additional COVID-19 policies at each hostel in a consistent manner. Overall, we are encouraged that our travellers are continuing to book Dorms in the majority of cases - with only a slight shift to date in accommodation mix towards Private rooms versus Dorm accommodation across markets. Overall while bookings continue to trend well below normalised patterns, and assuming a gradual improvement in the macro travel environment, we expect the recovery to improve further in Q3 and Q4 2020, albeit net bookings will remain at significantly reduced levels when compared to 2019. Whilst this recovery is likely to take some time and the consumer environment will continue to be uncertain and challenging, the Board remains confident in the resilience and flexibility of our business model, and that we are well positioned to execute on our strategy and build market share as demand recovers. In parallel, the Board will continue to evaluate internal and external opportunities that will deliver value for shareholders, in particular the significant potential to enhance future growth primarily through building out a broader catalogue of experiential travel products beyond hostel accommodation. In light of continued market uncertainty, the Group is not in a position to provide full year guidance until such time as the overall impact of COVID-19 on the Group becomes clearer.
masurenguy: Operational & Financial Highlights -- While full year net revenue of EUR80.7m declined 2% (2018: -5%), H2 net revenue of EUR41.8m increased 6% (H1 2019: -9%) -- Full year Hostelworld brand net bookings declined by 5% (2018: -1%), with a return to net bookings volume growth during H2 2019 -1% (H1 2019: -8%), driven by Q4 2019 +1% -- Average Net Booking Value of ("ABV") EUR11.97 (2018: EUR11.64), a 3% increase over 2018 -- Cancellations of EUR9.3m (2018: EUR5.5m) in-line with expectations, year-over-year increase reflects full year impact of July 2018 global roll-out -- Operating costs were flat compared to 2018, (excluding impact of exceptional costs and IFRS 16), despite our investment in "Roadmap for Growth" initiatives and having delivered a return to growth in the latter part of H2 2019 -- Marketing costs increased to 41% of net revenue (excluding deferred revenue), (2018: 37%) driven by the full year impact of cancellations in 2019, CPC inflation and increased paid channel investment in H2 2019 -- Adjusted EBITDA of EUR20.5m (2018: EUR22.5m) in-line with market expectations, down 9% on 2018 and 11% on a constant currency basis -- Return on Capital Employed of 11% (2018: 13%) -- Adjusted Earnings per Share of 15.5 EUR cent (2018: 18.2 EUR cent) -- Adjusted cash conversion of 53% (2018: 101%) and free cash flow of EUR10.9m (2018: EUR22.8m), impacted by one-off timing of cash receipts and increased investment spend. Adjusting for these one-off items, and the impact of the deferral of the revenue related to free cancellation bookings, normalised cash of 64% (2018: 90%) -- Proposed final dividend of 2.1 EUR cent per share (2018: 9.0 EUR cent), full year dividend 6.3 EUR cent per share 2018: 13.8 EUR cent per share) and a total distribution of 41% of Adjusted PAT, in line with the updated Group dividend policy Gary Morrison, Chief Executive Officer, commented: "Following the group's return to growth in 2019, I see significant opportunities to build a broader catalogue of experiential travel products beyond hostel accommodation. These types of experiences may include opportunities to study, work or volunteer abroad, with hostel stays featuring as part of an extended itinerary. Our research would also suggest that this market is very fragmented, with many different marketplaces and business models. With the group's deep knowledge of experiential travellers built up over 20 years, our trusted brand, and a loyal and relevant customer base, I believe we are uniquely positioned to help both our existing customers and new experiential travellers Meet the World (R) together with other like-minded travellers. To execute this strategy, the Group has increased its focus on potential M&A opportunities in the past six months and built an extensive pipeline of potential targets. Overall, the Group sees significant potential for the further deployment of capital to enhance future growth through both organic and inorganic investment opportunities. As a result, the Board has taken the decision to rebase the dividend policy. A rebased progressive dividend with a pay-out of between 20-40% of Adjusted Profit After Tax will enable investment in organic and inorganic opportunities which should see shareholder return increase in the medium to long term." Outlook: While we entered 2020 with positive momentum, trading since late-January has been challenged by the outbreak of the COVID-19 virus which is having a significant impact on global travel demand, within Asian markets and more recently within the European market. As the Coronavirus has spread from region to region, we have observed a material reduction in bookings and an increase in marketing cost as a percentage of net revenue. This has been driven by a significant reduction of bookings from free channels, an increase in longer lead time cancellations across all channels and an increase in investment in paid channels to partially offset the bookings decline in free channels. Given that the depth and duration of the virus outbreak is impossible to forecast at this time, we are unable to calibrate its effect for the balance of the year; however, if near term trends were to persist to the end of March we estimate the impact to EBITDA to be in the range EUR3m to EUR4m for Q1'20. With continued tight cost control and our strong cash generative characteristics, the Group remains resilient in volatile market conditions.
thomshrike: edreamsodigeo, a HSW peer, posted Q numbers today. Their geographical split is very similar to HSW's. They provide an interesting table showing the yoy bookings drop on the period Feb22-Feb25: -12%. If Hostelworld shows a similar pattern, and if the epidemic wears out at some point later in the year, and taking into account my previous calculations of the ST impact in earnings, I would expect HSW's share price to recover very significantly by then.
thomshrike: Some sensitivity analysis. Let's assume that: - the virus results in a 5% decline on HSW global bookings during FY 2020 (I think we can all agree this sounds very extreme), with no impact on 2021 and onwards, as the pandemic ends. - the bookings decline flows directly to the bottom line, with no cost offsets except for lower taxes. Then the value loss for HSW would be c. 3m GBP. That amounts, even at today's reduced share price to c. 2.5% of the market cap of the company. Whereas since the beginning of the virus story the stock has already declined more than 10%.
nw99: Whenever the longstanding overhang in the shares there was has finally been lifted. This has left the shares on a derisory prospective PE of 9.0, with a dividend yield of 8.4% at a time when HSW says 2019 will be the nadir in its trading and it expects a return to growth in customer bookings in 2020.
thomshrike: Hi m_kerr, here are my two cents: HSW's USP is indeed not price but rather the following: - on the perspective of the hostel: (i) the hostel wants to have visibility on search engines within the OTO. They prefer to be, say on the London search page, #3 at HSW as opposed to #654 at has no incentive to invest in giving them visibility, because why would they route users from a 200 GBP room to a 20 GBP bed (when they charge their fee as a %)? (ii) HSW provides help to hostels with things like booking management system. - on the perspective of the user: (i) if you are looking for a hostel, it is much easier to navigate a focused platform like HSW; (ii) the features of their app allow for more social interaction around the hostel and with people staying there. The problem with HSW today is not brand awareness or having a competitive edge. The problem is that the tech debt of its core IT platform does not allow the company to convert users as much as they should. There are many people who look up hostels at HSW and then convert at Why? Different features like promotions (or until recently the option for free cancellations) or speed of use (payment, etc). Hopefully HSW will be able to catch up with peers. They are doing sizable investments as we speak, especially with their team in Porto, Portugal. At 10% FCF yield, I think it is worth the risk. But that's only my opinion. Hope it helps.
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