Travelzoo profit falls on local deals, air search
NEW YORK -- Travelzoo's third-quarter net income fell 42 percent due to declining sales on its airline search site.
The stock fell 3 percent.
The New York company earned $3.4 million, or 22 cents per share, compared with $5.9 million, or 36 cents per share, a year earlier.
Revenue fell 8 percent to $35.4 million.
"We are disappointed with our third-quarter results," said CEO Chris Loughlin. "Declines in SuperSearch and Local Deals were not made up by the positive momentum we saw in Getaways. Continued investments into sales team expansion and subscriber growth, as well as enhancements to our hotel and mobile products are affecting profitability in the near-term, but we believe these are the right steps to position Travelzoo for sustainable and profitable future growth."
SuperSearch is Travelzoo's airline search function that allows potential travelers to search several different airline ticket sites at once to compare prices. Local Deals is similar to offerings by Groupon and Living Social, offering visitors discounts on food and services in their area.
Business in Europe, despite economic turmoil there, didn't fall as much as in North America. Europe sales fell 4 percent while they dipped 10 percent in North America.
Travelzoo's subscribers rose 5 percent in the quarter from a year ago.
Shares of Travel Zoo Inc. fell 52 cents to $17.48.