Investors checked out of online bookings group Hostelworld on Wednesday, spooked by a profit warning and a poor summer performance.
The shares plunged 18.3p, or more than 11%, to 143.5p after it said full-year underlying profits are expected to be below the €21.4 million (£19.6 million) recorded in 2018.
It saw weaker-than-predicted summer bookings, partly hurt by low consumer confidence and increased competition. Sales in the six months to June fell 9% to €38.8 million. Pre-tax profits were also lower following investments into the business.
Hostelworld’s chief executive Gary Morrison remained upbeat about future growth potential. He added: “We continue to operate in an attractive and growing market.”
Separately, Hostelworld said it has bought a minority stake in Australia-headquartered tech firm Tipi Pty for $3 million (£2.5 million).
Tipi allows users to download codes for swiping into rooms using their phones without having to pick up keys at a reception, see what is on at the hostel, and lets guests opt in to meet other people staying in the property.
