Hostelworld's FY in line with expectations amid challenging industry conditions

Hostelworld's shares are up more than 6% after the hostel-focused online booking platform produced a full-year performance in line with expectations in spite of challenging industry conditions.

It said revenue for the 12-month period to 31 December 2016 were €80.5m, which was down from the previous year's €83.5m. Its pre-tax profit was €133,000, from €80.5m.

The just-closed period was hurt by €8.2m of impairments, versus nil a year previously, with the year-ago period having recorded €30.9m of financial costs but also getting a boost from a €104.2m exceptional gain.

Chairman Richard Segal said 2016 marked Hostelworld's first full year as a publicly listed company.

"As widely reported, this year was challenging for the travel industry, which had to contend with the impact of terrorist attacks and the implications of Brexit," he said.

"Whilst our performance, particularly in our key European market during the second and third quarters of the year, was impacted by these events, our results demonstrate the strength of the overall business model and our ability to execute strongly on our strategy."

Looking ahead, Hostelworld saw improved momentum in the latter part of 2016, which had continued through first-quarter 2017.

"Our continued focus on key strategic initiatives is supporting year on year bookings growth, and together with our highly cash generative business model positions us well to benefit from continued market growth," the company said.

At 10:31 GMT, shares in Hostelworld were up 6.29% to 228.25p each.