Hello, everyone. Welcome to the Travelzoo Second Quarter 2020 Financial Results Conference Call.
The company would like to remind you that all statements made during this conference call and presented in the slides that are not statements of historical facts constitute forward-looking statements and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could vary materially from those contained in the forward-looking statements.
Factors that could cause actual results to differ materially from those in the forward-looking statements are described in the company's forms 10-K and 10-Q and other periodic filings with the SEC. Unless required by law, the company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Please refer to the company's website for important information, including the company's earnings press release issued earlier this morning. An archived recording of this conference call will be made available on the Travelzoo Investor Relations website at travelzoo.com/ir.
Now it's my pleasure to turn the floor over to Travelzoo's Global Chief Executive Officer, Holger Bartel, and its Chief Accounting Officer, Lisa Su. Lisa will start with an overview of the second quarter 2020 financial results.
Thank you, operator. And welcome to those of you joining us today.
Please open the management presentation to follow along with our prepared remarks. The presentation in PDF format is available on our Investor Relations website at travelzoo.com/ir.
The first slide on Page number 3 provides the effects of the COVID-19 pandemic. Revenues in the second quarter of 2020 decreased year-over-year by 74% to $7 million. Loss of revenues and certain onetime expenses caused the net loss in Q2 of 2020. We believe we were able to keep the loss relatively limited as we succeeded with quickly reducing operating expenses.
On the next slide, on Page 4, you can see most travel and entertainment companies were severely impacted by the pandemic in Q2 of 2020, but Travelzoo as a global Internet media company was less impacted than others in the space.
Slides 5 and 6 detail our revenues by business segment. When neutralizing FX changes, the North America business segment recorded a decrease in revenue of 77% year-over-year and the Europe business segment recorded a decrease in revenue of 79% due to the pandemic. We saw advertising drop off significantly beginning in March of 2020 in both Europe and North America due to advertisers reducing or canceling advertising due to the pandemic. In June, we began to see a recovery.
As shown on Page number 7, the operating expenses were reduced significantly compared year-over-year. We took extreme cost-cutting measures due to the loss of revenue, including furlough of staff, reduction of marketing expenses and reduction of travel of staff worldwide.
On Page 8, you see our cash balance increased from $14.4 million as of March 31 to $27 million, even after making a $6.8 million payment for the acquisition of Jack's Flight Club.
Chief Accounting Officer
Global Chief Executive Officer
James C. Goss
Edward M. Woo
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