HBX Group has revealed its Half Year 2025 results yesterday from the period that ran October 2024 until 31 March 2025.
The firm announced its Total Transaction Value (TTV) was up 12% from the same period in 2024, to €3.4 billion, indicating that it continues to outperform the global accommodation market.
Revenue was €319 million for the six-month period too which is up 10%, driven by double-digit growth in travel to Europe and MEAPAC with a gross profit of €307 milion, up 10% with higher income from fintech solutions offset by higher costs.
Adjusted EBITDA of €159 million was up 14% and Adjusted EBITDA margin of 50%, nearly 2 (1.7) points up.
Since the beginning of April trading has remained broadly in line with first half performance but the company outlined that recent volatile macroeconomic environment has led to slightly lower visibility for summer bookings.
Because of this, the range of potential revenue outcomes for FY25E is now wider and FY25E revenue guidance is updated to €740-790 million.
Guidance has been introduced for Adj. EBITDA (€430-450m) and operating free cash flow conversion (c. 100%, in line with mid-term guidance), actions being taken to deliver profitability and cash generation.
The company said in a statement: “Our Mid-term outlook is unchanged. Our strong value proposition, compounded by the long-term positive spending trends underpinning the travel and leisure market, gives us confidence for the future.”
HBX puts its commercial successes in the first half partly down to some of its new agreements signed during this period.
This included the launch of the Luxurist, a new platform to connect and curate travel and experiences in the luxury segment, expanding the Group’s ecosystem in this high growth segment.
A new preferential agreement with Latin American OTA Despegar was said to have an “almost immediate impact on transaction volumes” which saw it catapult to one of the group’s largest distribution partners.
An agreement with Minor hotels added over 180 properties in the MEAPAC region with the potential to add a further 300 properties over the next three years, while Turkish Airlines launched its new Holidays offering in partnership with HBX Group and PerfectStay, offering passengers package holiday opportunities in over 60 countries, during this time too.
HBX Group successfully listed on the Spanish Stock Exchanges on the February 13 2025, with stabilisation period ending on the March 14 2025.
The transaction raised €725 million gross proceeds for the Company. Proceeds were used to reduce debt, after the payment of costs associated with the IPO, including transaction fees, accrued interest on refinanced debt and legacy incentive programmes.
In March, S&P upgraded its credit rating on HBX by two notches, to BB- with a Stable outlook while Moody’s upgraded its credit rating on HBX by two notches, to Ba3 with a Stable outlook.
Towards the end of the month, the group successfully completed the refinancing of its capital structure, issuing new €600m term loan A, €600m term loan B and €400m revolving credit facility.
Post period end, HBX Group invested in on-line check in and guest hyper-personalisation with acquisition of Civitfun, a hospitality tech company, adding new capabilities that expand the technology available to hotels.
Nicolas Huss, chief executive officer of the group, said: “We delivered a strong performance in the first half of the year, generating double-digit growth and improving our Adjusted EBITDA margin.
“Our scale, technology platform and data driven insights helped us to outperform the market.
“We successfully listed on the Spanish Stock Exchanges and refinanced our debt, two significant milestones as we position our Company for future growth.
“Our resilient business model and long track record of outperformance give us confidence in our outlook.
“We are closely monitoring developments in consumer behaviour and overall travel demand dynamics in what has become a more volatile macro environment and are taking proactive measures to support growth, efficiency and delivery.”
