Hostelworld Group PLC on Wednesday said revenue topped pre-virus levels in September, and the online travel agent now expects to end the year in a ‘stronger cash position than originally expected’.

Gross merchandise value, net of cancellations, also topped 2019 levels in September, the Dublin, Ireland-based firm said.

‘While recognising that wider macro-economic conditions are challenging and highly volatile, I remain very encouraged by the growth outlook for our business, underpinned by our highly differentiated Social strategy, data driven marketing allocation and disciplined cost control,’ Chief Executive Officer Gary Morrison said.

Net bookings in September reached 83% of 2019 levels, helped by a recovery of Asia and Oceania regions, whose bookings reached 70% of 2019 levels in September, growing from 43% in June.

Hostelworld now expects to report ‘modestly positive’ earnings before interest, tax, depreciation and amortisation for 2022.

The company said its outlook for 2023 is encouraging.

‘We expect our growth strategy to continue to deliver further significant benefits in financial year 2023 and beyond,’ it added.

Hostelworld shares were 0.9% higher at 76.56 pence each in London on Wednesday midday.

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