Travelzoo saw a 16% decrease in revenue in Europe in the second quarter of the year, the deals publisher has revealed in a trading update.
Overall the firm reports revenue of $26.4 million, down 8% year-over-year and operating profit of $1.4 million.
Earnings per share (EPS) from continuing operations was $0.05 and cash flow used in operations stood at $2.6 million
In a statement Travelzoo said “in nominal terms, revenue decreased by 11% year-over-year. In constant currencies, revenue decreased by 8% year-over-year.
“Net income was $687,000, with EPS of $0.05, which includes income from discontinued operations of $54,000”.
Holger Bartel, Global chief executive of Travelzoo, said: “We never compromise the quality of the offers which we provide to our members—even if it resulted in less deals being promoted during the second quarter of 2017 and a corresponding decrease in revenue of certain products.
“Our top priority is to provide Travelzoo members outstanding, exclusive travel and entertainment experiences. We remain ambitious to grow Travelzoo’s global brand and business.”
Travelzoo said Asia Pacific revenue decreased 20% year-over-year to $2 million while operating loss for the second quarter was $1.2 million, compared to an operating loss of $1.2 million in the prior-year period.
In Europe revenue decreased 16% year-over-year to $7.9 million and operating profit for the second quarter was $268,000, or 3% of revenue, compared to operating income of $1.7 million, or 18% of revenue in the prior-year period.
North America also saw a revenue decrease of 7% year-over-year to $16.6 million. Operating profit for the second quarter was $2.3 million, or 14% of revenue, compared to operating income of $3.0 million, or 17% of revenue in the prior-year period.
As of June 30 Travelzoo claimed to have a global unduplicated number of members of 29.3 million.
In Asia Pacific it has 3.6 million, in Europe 8.4 million, up 3% from on 2016 and in North America 17.4 million, consistent with June 30, 2016.
During the second quarter, Travelzoo used $2.6 million of cash for operating activities. Accounts receivable decreased by $5.8 million over the prior-year period to $12.6 million.
Accounts payable decreased by $6.6 million over the prior-year period to $14.2 million.
Capital expenditures were $186,000, down from $503,000 in the prior-year period. As of June 30, 2017, cash and cash equivalents were $21.3 million.