Travelzoo (TZOO) revealed a stronger-than-expected 62% increase in third-quarter profit on much higher sales in Europe and North America.
The company saw revenue in North America climb 32% year-over-year to $28.1 million, while Europe jumped up 65% to $10.7 million. Total unduplicated newsletter subscribers grew 14% during the three months ended Sept. 30 to 21.3million.
“In a typically slow third quarter, Travelzoo's growth accelerated; revenues grew at the fastest pace in five years and reached record levels in both North America and Europe," the company’s chief executive Chris Loughlin said in a statement.
The New York-based online travel deals publisher posted net income of $5.9 million, or 36 cents a share, compared with $3.65 million, or 22 cents a share, in the same quarter last year. Analysts polled by Thomson Reuters were expecting a profit of just 34 cents.
Revenue for the 13-week period was $38.7 million, up 40% from $27.7 million, virtually matching the Street’s view of $38.5 million.