UK´s Travelzoo Posts $13.4 Million Worth of Revenues in Third Quarter

Travelzoo has reported revenues of $13.4 million for the third quarter ended September 30, 2005, an increase of 41 percent over revenues of $9.5 million for the prior-year period.

The company attributed the growth to its subscriber base in the US and venture in the UK. Travelzoo UK began operations in May 2005.

The company managed a quarterly sequential increase of 9% over revenues of $12.3 million for the second quarter ended June 30, 2005. All revenues were generated from the sale of online advertising to travel companies.

“Travelzoo continued to see growth in the third quarter as a result of our large audience of 8.9 million subscribers in the US, and our new UK business,” said Ralph Bartel, chairman and chief executive officer, Travelzoo.

According to the company, income from operations for the third quarter was approximately $4.2 million or 31.5 percent of revenues. The New York-based publisher of travel sales and specials reported net income of $2.3 million for the quarter.

“Reported net income for the third quarter of 2005 includes a loss of $363,000 from Travelzoo´s new U.K. business. The loss was treated as having no recognizable tax benefit. Travelzoo´s new U.K. business generated revenues of $368,000 in the third quarter 2005, up from $9,000 in the second quarter 2005,” stated the company.

Recently, the company had announced opening up of its new office in Las Vegas as a response to the needs of its more than 8.6 million (during the time of announcement) newsletter subscribers.

Last month, Travelzoo UK Ltd has stated that it has witnessed a 300% surge in Web site traffic in the 30 days ending September 14, 2005 in comparison with the figures for the previous month.

The company attributed the increment in visits to Travelzoo UK´s Web site to the “growing number of first-time users resulting from Travelzoo UK´s brand awareness campaign as well as the ongoing interest of repeat visitors.”