Travelzoo Doubled Revenues in First Quarter of 2006

Travelzoo reported financial outcomes for the first quarter ended March 31, 2006, with revenue of $16.9 million, an increase of 51 percent from the first three months of 2005.

Net income was $4.1 million, with diluted earnings per share (EPS) of $0.24, up from $0.10 in the prior-year period.

“The first quarterly results of 2006 mark our 31st consecutive quarter of growth in online advertising sales,” said Ralph Bartel, Travelzoo´s chairman and CEO. These results were also impacted by a lower than anticipated loss from our Europe business segment and a decrease in our effective tax rate.”

Travelzoo´s effective income tax rate decreased to 43.6 percent in the first quarter of 2006 from 56.7 percent in the last quarter of 2005, and 48.7 percent in the prior-year period.