Travelzoo 2Q profit grows as it adds subscribers
Travelzoo Inc. said Thursday that its net income surged 48 percent in the second quarter as it added subscribers and business in North America and Europe strengthened.
The company's revenue comes from advertising and from taking a cut of some deals consumers buy. It sells discounts on flights, hotels, vacations and cruises through email newsletters and its website. Competitors include Expedia Inc. and Priceline.com Inc.
The travel company reported on Thursday that it earned $7.3 million, or 45 cents per share, for the period ended June 30. That's up from $4.9 million, or 30 cents per share, a year ago.
Subscribers grew 6 percent to 22.1 million, with a 12 percent rise in Europe and a 4 percent gain in North America.
Revenue rose 5 percent to $39.4 million from $37.6 million.
Shares of Travelzoo, which is based in New York, dropped 37 cents, or 1.7 percent, to $21.36 in afternoon trading.