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21 Aug 2019 | 08:43

Hostelworld warns on profits, cuts dividend on weaker summer booking, higher costs

Hostelworld, a hostel-focussed online booking platform, warned on full-year earnings and cut its dividend after reporting a fall in profits as booking demand over the peak summer period fell short of expectations. 'Coupled with higher than anticipated inflation in performance marketing channels and the financial effect of increased investment in our 'Roadmap for Growth' during the second half of the year, means that EBITDA for the full year is likely to be below 2018,' the company warned. For the period ended 30 June 2019, pre-tax profit fell to €448,000 from €2.86m a year earlier and revenue fell to €38.8m from €42.6m a year earlier. 'The first half financial performance was also significantly impacted by higher than anticipated inflation in performance marketing channels and the effect of the full global roll out of the free cancellation product being included for the whole period for the first time,' the company said. The company declared an interim dividend of 4.2 euro cent a share, down from 4.8 euro cent.

At 8:43am: (LON:HSW) Hostelworld Group Plc share price was -17.1p at 144.7p

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