YTB’s Third-Quarter Net Profit Falls 87 Percent

YTB International eked out a $288,000 net profit in the third quarter of 2008, compared with $2.1 million in the year-ago third quarter. Third-quarter revenue was $42.9 million, up 7.5 percent from $39.9 million. Revenue from travel commissions and services was $8 million, up from $5.5 million. Total operating expenses rose 13 percent, from $37.7 million to $42.5 million.

“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,” said Scot Tomer, YTB International’s CEO.

Tomer added that YTB’s focus on affordable travel offers a “needed alternative” in the marketplace. YTB’s home-based associates sell travel on their own websites. In a separate development, YTB International named Kim Sorensen vice chairman and Andrew Cauthen president.

Sorensen remains president and CEO of YTB Travel Network, the YTB subsidiary focused on home-based businesses. Cauthen joined YTB in November 2004 as chief operating officer. As President of YTB International, Cauthen will oversee the completion of a new international headquarters in Wood River, Ill.