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Travelzoo Inc Reports Operating Results (10-Q)

July 30, 2012 | About:
10qk

10qk

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Travelzoo Inc (TZOO) filed Quarterly Report for the period ended 2012-06-30.

Travelzoo Inc. has a market cap of $349.01 million; its shares were traded at around $21.8 with a P/E ratio of 13.41 and P/S ratio of 2.35. Travelzoo Inc. had an annual average earning growth of 22.8% over the past 10 years.

Highlight of Business Operations:

Cost of revenue increased $2.3 million for the six months ended June 30, 2012 from the three months ended June 30, 2011. This increase was primarily due to an increase in Local Deals and Getaways costs including $405,000 in subscriber refunds and $910,000 in credit card fees, a $327,000 increase in salary and employee related expenses due primarily to an increase in customer service headcount. In addition, there was an increase of $370,000 in payments made to third-party partners of the Travelzoo Network.

Sales and marketing expenses was $32.3 million and $34.8 million for the six months ended June 30, 2012 and June 30, 2011, respectively. For the six months ended June 30, 2012 and 2011, advertising expenses accounted for 38% and 53%, respectively, of total sales and marketing expenses.

North America net revenues increased $1.2 million for the three months ended June 30, 2012 from the three months ended June 30, 2011 (see Revenues above). North America expenses decreased $72,000 for the three months ended June 30, 2012 from the three months ended June 30, 2011. This decrease was primarily due to a $2.0 million dollar decrease in television advertising expense and a $509,000 decrease in subscriber acquisition cost, offset by a $1.1 million increase in salary and employee related expense due in part to a head count increase, a $484,000 increase in cost of revenue primarily related to Local Deals and Getaways credit card fees, a $340,000 increase in professional services expense, a $275,000 increase in rent, office and insurance expense and a $163,000 increase in Search traffic acquisition costs .

Europe net revenues increased $635,000 for the three months ended June 30, 2012 from the three months ended June 30, 2011 (see Revenues above). Europe expenses decreased $814,000 for the three months ended June 30, 2012 from the three months ended June 30, 2011. This decrease was primarily due to a $917,000 decrease in subscriber acquisition cost. Foreign currency movements relative to the U.S. dollar negatively impacted our income from our operations in Europe by approximately $71,000 for the three months ended June 30, 2012. Foreign currency movements relative to the U.S. dollar positively impacted our income from our operations in Europe by approximately $52,000 for the three months ended June 30, 2011.

Europe net revenues increased $2.0 million for the six months ended June 30, 2012 from the six months ended June 30, 2011 (see Revenues above). Europe expenses decreased $2.0 million for the six months ended June 30, 2012 from the six months ended June 30, 2011. This decrease was primarily due to a $2.3 million decrease in subscriber acquisition cost, offset by a $921,000 increase in salary and employee related expense due in part to a head count increase. Foreign currency movements relative to the U.S. dollar negatively impacted our income from our operations in Europe by approximately $71,000 for the six months ended June 30, 2012. Foreign currency movements relative to the U.S. dollar positively impacted our income from our operations in Europe by approximately $128,000 for the six months ended June 30, 2011.

Read the The complete Report

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