• News
  • SAN DIEGO
  • Finance

Travelzoo ramps up sales force, shrinking profit

NEW YORK (AP) -- Travelzoo's profit shrank in its most recent quarter, despite higher revenue, as the travel deals website hired more salespeople and spent more on marketing.

That appeared to please investors, who sent Travelzoo's shares up $3, or 16 percent, to $22.21 in morning trading. Shares dropped 24 percent in 2012, hitting a two-year low in November, as investors worried about the company's difficulty getting several initiatives, such as its hotel search function, to appeal to consumers as well as a slow and uneven economic recovery.

Travelzoo offers deals on flights, hotels and vacation packages through email newsletters and its website. Its revenue comes from advertising and from taking a cut of some deals consumers buy.

In the quarter ended Dec. 31, net income was $3.8 million, or 24 cents per share, down 42 percent from $6.4 million, or 40 cents per share, in the same three months in 2011. Revenue rose 5 percent, to $37 million from $35.2 million, as business trends improved in Europe and North America.

But the company spent more to build up its sales force and on marketing to lure those travelers. Subscribers grew 5 percent to 22.5 million in North America and Europe.

Operating expenses rose 23 percent to $28.6 million.

For the year, Travelzoo posted a profit of $18.2 million on revenue of $151.2 million. In 2011, net income came to $3.3 million, with revenue of $148.3 million.

Leave Your Comment

Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.

SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.

User Response
0 UserComments

Leave Your Comment

Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.

SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.