Low cost accommodation site Hostelworld saw bookings rise by 37% to 6.5 million last year over 2022.
Full year profits [ebitda] of €18.3 million exceeded the upper end of market guidance of between €17.5 million and €18 million.
This came on the back of record revenue up 32% year-on-year to €93.7 million and gross transaction value up an identical percentage to €619 million.
In a trading update for 2023, the company said: “Continued execution of our highly differentiated growth strategy has enabled us to capitalise on robust demand in our key markets and to grow market share, while reducing paid marketing investment to the low end of our guidance range.”
Group chief executive Gary Morrison added: “I am very pleased to report another strong year of strategic progress for Hostelworld, which has been reflected in our results.
“Over 2023 we grew market share, delivered record revenues and increased operating leverage through a combination of reduced marketing spend (as a percentage of net revenue) and continued operating cost discipline to deliver ebitda which exceeds the upper end of our guidance range.
“In particular, I am also pleased to report our full year marketing costs as a percentage of net revenue fall from 51% in the first half of the year to 50% on a full year basis, which demonstrates the ability of our strategy to grow market share whilst reducing marketing costs.
“These results coupled with the strong cash conversion characteristics of our business model and a new facility agreed with Allied Irish Bank in May 2023, have enabled to us to strengthen our balance sheet and reduce our interest costs.
“As of 31 December 2023 we have repaid €5.5 million of the original €7.5 million revolving credit facility drawn down in May.
“Going into 2024, we are strongly positioned to deliver against our medium-term financial commitments.
“We have started the new year with strong momentum and I feel very confident that we will continue our track record of continued profitable growth and value creation for our shareholders.”
Full year results are due to be issued on March 21.