Hostelworld Group
Website:
Hostelworld Group
Index:
FTSE Small Cap
EPIC: HSW
Supersector:
Travel and Leisure
Sector:
Travel and Leisure
Subsector:
Travel and Tourism
Market Cap:
£137.48M
Payout Frequency: -
Hostelworld Group Dividend Analysis and Summary
Declared Dividend and Key Dates
- Final dividend: 1.58 € cent per share (FY2025)
- Ex-dividend date: 16/04/2026
- Record date: 17/04/2026
- Payment date: 12/05/2026
- Currency: EUR
Total FY2025 Dividend and Policy
- Total FY2025 dividend: 2.40 € cent per share (Interim 0.82 € cent paid 19 Sept 2025 + Final 1.58 € cent)
- Policy: Progressive dividend targeting 20%–40% of adjusted profit after tax
- Cash cost of FY2025 dividend: ~€3.0m
- FY2025 adjusted PAT: €15.0m ? payout ~20% of adjusted PAT
- Coverage: Adjusted EPS 11.91c vs DPS 2.40c (~5.0x cover); Basic EPS 5.63c (~2.3x cover)
Indicative Yield
- Using the disclosed year-end share price (~€1.43): FY2025 DPS 2.40c implies a yield of ~1.7%. Actual yield will vary with the prevailing share price.
Dividend Sustainability and Growth Outlook
- Profitability: Adjusted EBITDA €19.9m (21% margin); adjusted PAT €15.0m supports the dividend at the lower end of the 20–40% range.
- Cash and leverage: Year-end cash €12.2m, net debt €1.6m after funding the OccasionGenius acquisition with a €10.3m term loan; leverage remains low against EBITDA.
- Cash generation: FY2025 cash conversion fell to 51% (vs 66%), but management targets ~70% adjusted FCF conversion in 2026; if delivered, headroom for progressive dividends improves.
- Coverage headroom: Current payout (~20%) leaves scope to grow dividends alongside earnings within the stated 20–40% policy.
- Capital returns balance: Ongoing buyback (£5m programme, largely completed by Q1 2026) complements cash dividends; buyback cancellations modestly enhance per-share metrics without stressing coverage.
Structural and Capital Allocation Developments Relevant to Dividends
- M&A: Acquisition of OccasionGenius Inc. for $12m, funded by a €10.3m 3-year AIB term loan (EURIBOR + 2.2%). Covenants (Cashflow Cover =1.2x; Adjusted Leverage =3.0x) begin testing June 2026; current leverage appears conservative.
- Share buyback: £5m programme; 3.06m shares repurchased and cancelled by YE 2025, with substantial completion by end Q1 2026. Reduces share count and supports DPS progression over time.
- Dividend policy: Progressive policy reinstated in 2025 with clear payout framework (20–40% of adjusted PAT), enhancing visibility for income investors.
Risks and Flags to Dividend Stability
- Trading sensitivity: Exposure to global travel demand; management notes potential impacts from Middle East tensions, mixed regional booking trends, and airline pricing.
- Marketing inflation: Direct marketing costs at 48% of generated revenue FY2025 (improved to 45% in H2); sustained efficiency gains are important to protect margins and cash.
- Cash obligations: Ongoing repayments of €3.5m warehoused payroll taxes through April 2027; new bank debt introduces covenant oversight (first test June 2026). While headroom appears ample, breaches could constrain distributions.
- Execution and integration: Delivery risk around integrating OccasionGenius and scaling new revenue streams (Social Passes, 3PI) that underpin the growth/FCF outlook.
- Currency: Dividends paid in EUR; FX exposure for GBP-based investors.
Read more
Hostelworld Group Annual Dividend Yield - 8.86%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/05/2019 |
05/06/2019 |
Final |
9.00¢ |
USX |
| 29/08/2019 |
20/09/2019 |
Interim |
4.20¢ |
USX |
Total (Annual Dividends Per Share):
9.83p
(Using exchange rate on 16/06/2026
$ = £0.74471)
Dividend Yield =
Annual Dividends Per Share (9.83p)
÷ Share Price (111p)
= 8.86%
Hostelworld Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 16/04/2026 |
12/05/2026 |
Final |
1.58¢ |
EUX |
| 28/08/2025 |
19/09/2025 |
Interim |
0.82¢ |
EUX |
| 16/04/2020 |
08/05/2020 |
Final |
2.10¢ |
USX |
| 29/08/2019 |
20/09/2019 |
Interim |
4.20¢ |
USX |
| 09/05/2019 |
05/06/2019 |
Final |
9.00¢ |
USX |
| 30/08/2018 |
21/09/2018 |
Interim |
4.80¢ |
USX |
| 10/05/2018 |
14/06/2018 |
Final |
12.00¢ |
USX |
| 31/08/2017 |
22/09/2017 |
Interim |
5.10¢ |
USX |
| 27/04/2017 |
06/06/2017 |
Special |
10.50¢ |
USX |
| 27/04/2017 |
06/06/2017 |
Final |
10.40¢ |
USX |
| 01/09/2016 |
27/09/2016 |
Interim |
4.80¢ |
USX |
| 28/04/2016 |
31/05/2016 |
Final |
2.75¢ |
USX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2020 |
|
2.100 |
|
USX |
2.100 |
-84.090 |
| 2019 |
4.200 |
9.000 |
|
USX |
13.200 |
-21.420 |
| 2018 |
4.800 |
12.000 |
|
USX |
16.800 |
-35.380 |
| 2017 |
5.100 |
10.400 |
10.500 |
USX |
26.000 |
244.370 |
| 2016 |
4.800 |
2.750 |
|
USX |
7.550 |
|
Hostelworld Group Dividend Calculator
Hostelworld Group Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
-28.83%
|
| Years of Growth |
–
|
| Payout Ratio |
14.29%
|
| Buyback Yield |
0.53%
|
| Shareholder Yield |
2.37%
|
| P/E Ratio (TTM) | 22.6 |
|---|
| Forward P/E | 9.24 |
|---|
| P/FCF | 8.56 |
|---|
| Earnings Yield | 4.44% |
|---|
| FCF Yield | 11.68% |
|---|
| ROE | 9.78% |
|---|
| ROCE | 11.44% |
|---|
| Profit Margin | 7.46% |
|---|
| Operating Margin | 10.34% |
|---|
| Gross Margin | 79.64% |
|---|