Hostelworld Group (LSE:HSW), the social travel and hostel booking platform, reported net revenue of €52.2m for the six months to 30 June, up 12% year-on-year.
Adjusted EBITDA rose 11% to €8.2m, with margin held flat at 16%, while net transactions grew just 1% to 3.8m.
The company estimates the conflict in the Middle East cut volume growth by around three percentage points, concentrated in longer-haul demand to Asia and Oceania, with Europe and North America proving more resilient.
Growth was driven by Elevate, Hostelworld's marketplace monetisation tool, which lifted the effective commission rate to 17.7%, up from 15.8% a year earlier and 16.7% in the second half of 2025.
Direct marketing costs fell to 49% of generated revenue from 51%, pushing net margin up 16% to €22.9m.
Adjusted profit after tax slipped to €4.9m from €5.1m, with adjusted EPS down 2% to 3.95 cent.
"Hostelworld delivered strong revenue growth in the first half of 2026", said chief executive Gary Morrison, noting in-app chat messages rose 65% year-on-year as social members increasingly outperform non-members on transactions and margin.
The group ended the period with net cash of €2.5m, against net debt of €1.6m at year-end, and completed its £5m share buyback in April, repurchasing 4.1m shares.
The board approved an interim dividend of 0.83 cent per share, up from 0.82 cent, payable 18 September.
Hostelworld reiterated full-year guidance in line with market expectations, assuming Middle East disruption eases through the second half.
News Intelligence what this means for the company
Hostelworld grew H1 revenue 12% to €52.2m and held adjusted EBITDA margin flat at 16% despite a three-point volume headwind from Middle East conflict, driven by Elevate—its commission-rate monetisation tool—which lifted effective commission to 17.7% from 15.8% a year prior. The company reiterated full-year guidance and swung to net cash of €2.5m, signalling operational resilience and confidence that regional disruption will ease.
Elevate is delivering the margin lift needed to offset volume pressure and direct marketing cost headwinds, but net transaction growth of just 1% and a three-point volume hit from geopolitical risk show the platform remains exposed to demand shocks outside its control. Reiterated guidance suggests management sees H2 recovery, but execution risk remains if Middle East disruption persists.
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