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Hostelworld warns on performance as any recovery to be 'muted' amid virus spike
StockMarketWire.com
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Hostel operator Hostelworld warned on performance as it no longer expected an improvement in the macro travel environment, with any recovery now forecast to be 'muted' as travel restrictions tightened.
The company said it now expected full year net bookings to be in the range of 20-to-22% of 2019. In its base case, that would represent just 25% of the bookings last year, and slightly below the base case in its pessimistic case.
Revenue was expected to be in the range of 16-to-18% of 2019; its base case of revenue was 20% of 2019, or 'slightly below' the base case in its pessimistic case.
Since the end of August, travel restrictions had 'tightened globally and we have seen demand level off, and in recent weeks we have experienced a marked deterioration in bookings,' the company said.
Looking ahead to the rest of the year, we no longer expect an improvement in the macro travel environment and therefore expect any recovery to be muted.
'[T]he group's net cash position stands at €22.6 million (as at 30 June 2020: €29.4million) with monthly operating cash burn €2.0m through Q3 which is expected to reduce further in Q4,' the company said.
At 8:05am: (LON:HSW) Hostelworld Group Plc share price was -4.1p at 50p
Story provided by StockMarketWire.com
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