Internet travel services company Travelzoo Inc. shared that this year's first-quarter profit more than doubled and it benefited from a lower-than-expected loss from its operations in Europe and a decrease in its effective tax rate. (4/19/2006)

The company's net income was $4.1 million, or 24 cents per share, in the first quarter, up from the $1.83 million, or 11 cents, during the year earlier period. Sales jumped 51 percent from a year ago to $16.9 million.

The company's North American unit saw operating profit more than double to $7.4 million from $3.4 million as revenue rose 46 percent to $16.4 million. The company's European operations, which started in March 2005, posted an operating loss of $460,000, narrower than the $579,000 reported in the fourth quarter.

Q1 2006 marks our 31st consecutive quarter of growth in online advertising sales,said Ralph Bartel, the company's chief executive in a statement. Q1 2006 results were also impacted by a lower than anticipated loss from our Europe business segment and a decrease in our effective tax rate.

Travelzoo's income tax rate decreased to 43.6 percent in the first quarter from 48.7 percent in the same quarter in 2005.

It appears customers are going to continue to be repeat customers,?said Paul Foster, an analyst with theflyonthewall.com, according to Reuters.

According to chron.com, Guilford Securities analyst George Mihalos said Travelzoo's heavily shorted position helped to drive its stock value. The short interest in Travelzoo as of March 31 was 1.3 million shares, whereas its float was 3.4 million shares, with 16.1 million shares outstanding, the analyst noted.

Recently, Travelzoo shared that the company's publications now reach more than 10 million subscribers. The 10 million opt-in subscribers represent a 21 percent increase over the same time last year. This represents the total number of unduplicated subscribers to Travelzoo's U.S. Top 20 e-mail newsletter, its Newsflash e-mail alert service and its UK Top 20 e-mail newsletter.