Shares in travel aggregator Travelzoo have slumped following the release of disappointing quarterly results.

While the company revealed second-quarter net income was $4.9 million, or 30 cents a share, compared with $3.2 million, or 20 cents a share, a year ago, this was below analysts’ expectations of 39 cents per share on revenue.

Revenue came in at $37.6 million, up 34 per cent.

[stock]TZOO|1m|right|Travelzoo shares slump despite revenue rise[/stock]

“We achieved record revenues and our fastest growth rate in four years,” said Chris Loughlin, chief executive of Travelzoo.

“We accelerated our investment in future growth, adding 27 new Local Deals markets, 800,000 new subscribers and we grew our headcount faster than in any prior quarter.

“We also ran a television advertising test, which negatively impacted earnings per share by approximately $0.07.

“We are pleased with our accelerated growth rate and confident that our investments will fuel future growth.”

Travelzoo had a total unduplicated number of newsletter subscribers in North America and Europe of 20.7 million as of June 30th, 2011, up 13 per cent from last year.

Following the release of the results shares in Travelzoo slipped nearly 30 per cent to $60.00.