Ever controversial YTB International reported total revenue for the quarter ending September 30, 2008 increased 7.5 percent to $42.9 million, compared to $39.9 million for the third quarter last year. Total revenue for the nine months ending September 30 increased 36 percent to $130 million, compared to $96 million for the same nine-month period last year. Net income, however, for the third quarter of 2008 was down to $287,999 compared to net income of $2.1 million for the third quarter of 2007.
Net loss for the nine months ending September 30 was $3.4 million compared to a net income of $1.6 million for the same period of 2007. YTB International, Inc. is listed (OTC Bulletin Board: YTBLA) as a provider of Internet-based travel booking services for travel agencies and home-based independents.
Scott Tomer, Chief Executive Officer of YTB, commented on the third quarter results, stating, 'While we are disappointed by the reduction in our net income, we are also aware that much of the softness we are seeing is reflective of both an industry-wide trend and a difficult comparison to last year's explosive growth. In the face of a looming recession, growing companies face the difficult choice of either cutting back on marketing efforts to save on expenses, or increasing these efforts in order to capture the increasingly selective customer. Our RTAs (Referral Travel Agents) remain the lifeblood of our company, and we know that their individual business success depends on the continuous training, marketing efforts, and infrastructure that we provide. With that in mind, we have maintained a strong marketing presence, and invested in the resources and infrastructure necessary to ensure the continued success of our business.”
Revenue from travel commissions and services for the quarter ending September 30 was $8 million, compared to $5.5 million for the same period last year— an increase of 45 percent. For the nine months ending September 30, the company received $22.2 million in revenue from travel commissions and services, compared to $13.9 million in last year's comparable period— an increase of 59 percent. Net cash provided by operating activities in the first nine months of 2008 was $6.1 million compared to cash provided by operating activities of $10.3 million in the first nine months of 2007.
"I strongly believe that YTB's focus on affordable travel offers a needed alternative in the market place," Tomer said. "Even with the slowing economy, we have seen a 45 percent year-over-year increase in our travel commissions for the quarter. We are confident that as the economy turns, our strategic investments in marketing and infrastructure will bear fruit."