Travelzoo doubles revenue for 1Q 06

Travelzoo reported financial results for the first quarter ended March 31, 2006, with revenue of $16.9 million, an increase of 51% year-over-year. Net income was $4.1 million, with diluted earnings per share (EPS) of $0.24, up from $0.10 in the prior-year period.

“Q1 2006 marks our 31st consecutive quarter of growth in online advertising sales,” said Ralph Bartel, chairman and chief executive officer, Travelzoo. “Q1 2006 results were also impacted by a lower than anticipated loss from our Europe business segment and a decrease in our effective tax rate.”

North America

North America business segment revenue grew 46% year-over-year to $16.4 million. North America reported an operating profit of $7.4 million, or 45% of revenue, up from an operating profit of $3.4 million, or 30% of revenue, in the prior-year period.



Europe business segment revenue was $565,000, up 49% from $380,000 in Q4 2005. Europe reported an operating loss of $460,000, compared to $579,000 in Q4 2005. Travelzoo began operations in Europe in May 2005.

Income Taxes

Travelzoo’s effective income tax rate decreased to 43.6% in Q1 2006 from 56.7% in Q4 2005 and 48.7% in the prior-year period.