Travelzoo Inc. garnered $17.7 million in revenue, an increase of 27 percent year-over-year, as it shared its fourth quarter results.

Published: 06 Feb 2007

Travelzoo Inc. garnered $17.7 million in revenue, an increase of 27 percent year-over-year, as it shared its fourth quarter results.

Net income was $4.3 million, with diluted earnings per share (EPS) of $0.26, up from $0.10 in the prior year period.

“Q4 2006 marks our 34th consecutive quarter of growth in online advertising sales,” said Ralph Bartel, chairman and chief executive officer, Travelzoo.

“Q4 is typically a quarter where we see a smaller increase in revenue and higher marketing costs because of the holiday season. We are very excited about our plans for the launch of a new product in spring 2007 in North America and our growth prospects in Europe,” added Bartel.

North America business segment revenue grew 23 percent year-over-year to $16.8 million. North America reported an operating profit of $8.0 million, or 47.9 percent of revenue, up from an operating profit of $4.1 million, or 30.2 percent of revenue, in the prior year period.

Europe business segment revenue grew 153 percent year-over-year to $961,000. Europe reported an operating loss of $356,000, compared to an operating loss of $579,000 in the prior year period and an operating loss of $276,000 in the prior quarter.

“Although operating losses increased by $80,000 from the prior quarter, the company made progress in Q4 2006 towards its goal of achieving profitability in the UK as soon as practical. The increase in the operating loss from the prior quarter was attributable to the start-up of operations in Germany,” stated the company.