Travelzoo Exits Loss-Making Asia Pacific Business / Focuses on Highly Profitable Business in North America and Europe
11 March 2020 - 1:28AM
Travelzoo® (NASDAQ: TZOO), an Internet media company that publishes
exclusive offers and experiences for members, today announced it
will exit its business in Asia Pacific this week. The Asia Pacific
business segment has incurred losses for several years.
Holger Bartel, Global CEO, said: “In our
communications to investors over the last two years, we have
consistently explained we will exit Asia Pacific if we cannot
create shareholder value from this business activity by 2020.
Unfortunately, the uncertainty about economies in Asia Pacific does
not, in our opinion, allow us currently to deliver the shareholder
value within the promised timeline and without further operating
losses from this segment. We do not expect this exit to have any
negative impact on our continued business. We will focus on growing
our very profitable businesses in North America and Europe, where
we see strong interest from our members in travel deals. The Asia
Pacific exit will also allow us to concentrate on the introduction
of the recently acquired and profitable Jack’s Flight Club
subscription service to Travelzoo members.”
In 2019, Asia Pacific accounted for 5.7% of
Travelzoo’s global revenue. In the same period, Travelzoo’s loss
per share from Asia Pacific was -$0.67, offsetting most of the
positive contribution of earnings per share (EPS) of $1.01 from
North America and Europe. As a result of the discontinuation of the
Asia Pacific business segment, Travelzoo expects its EPS to
increase by approximately 200% this year.
We look forward to bringing investors updates on
our progress.
About TravelzooTravelzoo® provides
our 30 million members insider deals and one-of-a-kind experiences
personally reviewed by one of our deal experts around the globe. We
have our finger on the pulse of outstanding travel, entertainment,
and lifestyle experiences. For over 20 years we have worked in
partnership with more than 5,000 top travel suppliers—our
long-standing relationships give Travelzoo members access to
irresistible deals.
Certain statements contained in this press release
that are not historical facts may be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities and Exchange Act of 1934. These
forward-looking statements may include, but are not limited to,
statements about our plans, objectives, expectations, prospects and
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forward-looking statements. Because these forward-looking
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and intentions and other factors discussed in our filings with the
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or achievements. Travelzoo undertakes no obligation to update
forward-looking statements to reflect events or circumstances
occurring after the date of this press release.
Travelzoo and Top 20 are registered trademarks of
Travelzoo. All other names are trademarks and/or registered
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Travelzoo590 Madison Avenue, 37th FloorNew York,
NY 10022
Investor
relations:Almira Pusch+1 212 484
4998IR@travelzoo.com
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