YTB International Inc. suffered a net loss of $1.6 million for the second quarter of 2009, as revenue plunged by almost 60 percent.

The online travel services provider, which has recruited at least 700 Bermudians, had previously posted a $200,000 net loss for the second quarter of 2008, despite the company reducing its net loss for the first six months of the year by $200,000 to $3.5 million, or three cents per share, from $3.7 million, or four cents per share, over the respective periods.

Total revenue for the quarter ended June 30, 2009 also decreased 59 percent to $18.1 million, compared to $43.7 million for last year's second quarter.

But net income from continuing operations increased to $1.3 million in the second quarter, versus a net loss of $100,000 for the second quarter of 2008.

General and administrative expenses decreased by $2.2 million in the second quarter of 2009 compared to the same period of 2008, primarily attributable to the company's cost reduction programme.

YTB's six-month results were significantly impacted by the recording of the sale of its former wholly-owned subsidiary REZConnect Technologies Inc., and related exit costs at the end of the second quarter of 2009.

As of June 30, 2009, the company had cash and cash equivalents of $1 million.

Scott Tomer, YTB CEO, said: "While our company still has work to do with regard to continued cost cutting, we are bolstered by both the reduction of our net loss for the first half of the year, and the significant improvement in net income from continuing operations in the second quarter.

"Although our industry continues to feel the effects of the current economic downturn, we remain cautiously optimistic as we are seeing signs of a return of consumer confidence, and we are hopeful that will in turn lead to increased spending on travel.

"While I am hesitant to say that the worst of the economic turmoil is behind us, I am confident that with our new marketing initiatives and expanded service offerings, we will be able to turn the corner in the near future.

"Looking to the second half of the year, we plan to continue to effectively manage our cost structure, ensuring that we are as agile as possible in order to take advantage of the inevitable market turnaround.

"Through our ongoing marketing initiatives, we are working to increase travel sales, while simultaneously working to make it easier and more affordable for our site owners to manage their businesses. We recognise that today's customers are more value oriented in their purchase decisions, and in turn have responded by expanding the value received in running an Internet Business Centre (IBC) by bringing 'in-house' our new 'Shop YTB' where store owners can direct customers to shop for items that they would already normally purchase online, allowing the store owner to receive cash back on these purchases.

"This is just one of many new programmes that we are putting in place with the knowledge that, once the economy begins to turn, the value of our platform will speak for itself."