Hostelworld cancels dividend payments for 2020
Hostelworld (LON: HSW) was suffering a loss as company bookings fell 79% over the past year.
The Dublin-based accommodation provider reported a loss of 17.3 million euros at the EBITDA level, down from its 20 million euros profit in 2019.
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Net annual revenues fell to 15.4 million euros, down 81% from 80.7 million euros in 2020.
The decline meant that it caused a loss of 17.3 million euros to revenue losses that fell from 20 million euros in 2019.
Hostelworld has confirmed a cancellation fee of €6.2 million as travelers abandoned their plans due to the effects of the pandemic.
The group announced that it would not pay that year’s dividend for its performance.
Hostelworld CEO Gary Morrison commented on the results.
“2020 has been a very challenging year for both the Hostel World and the global travel industry as a whole. In light of the unprecedented challenges presented by the pandemic, our key priorities are: (i) It was about supporting employees, customers and hostel partners: (ii) increasing liquidity and (iii) accelerated the implementation of the core platform roadmap,” Morrison said.
“This year we have achieved significant improvements in marketing capabilities, user experience and inventory competitiveness. These improvements will help the platform’s competitiveness against Q4’19’s ability to return bookings for growth. It will be further strengthened.”
“As vaccination programs continue to roll out in major geography around the world, we are confident that, after long-term confinement, there is a strong desire for our loyal customer base to travel. , I continue to see important opportunities to build a broad catalog of related experiential travel products and services, and beyond hostel accommodation, like-minded travelers through social features on the platform. There’s an opportunity to connect with each other.”
“HostelWorld is confident that it will emerge from a stronger pandemic than before and will seize market opportunities when normal travel patterns resume.”
