YTB International, Inc. a provider of internet-based travel booking services for travel agencies and home-based independent representatives in Bermuda, the US and several other countries reported a net loss of $3.5 million for the first quarter of this year, while revenue increased more than 75 percent.

YTB, which also operates in Puerto Rico, the Bahamas, the US Virgin Islands and Canada, has recruited thousands of people to become registered travel agents (RTAs), who get paid commission for steering business through the YTB travel website.

Former Opposition United Bermuda Party Leader Wayne Furbert is involved with YTB Bermuda, which was launched in February this year. Mr. Furbert set up his own affiliate company and has recruited more than 300 people to work for the YTB network.

In its earnings statement, YTB said its total number of RTAs increased to 138,814 in the first quarter of 2008 from 82,932 in the comparable quarter of 2007. The company put the 56,000 increase down to "the emerging market shift for travel services to the internet".

YTB said its total revenue for the first three months of the year increased 76.7 percent to $42.7 million, compared to $24.2 million for the first quarter last year.

The company's property and equipment increased from the balance of $15.4 million at the end of 2007 to $18.9 million as of March 31, 2008.

The net first-quarter loss of $3.5 million, or $0.03 per diluted share, compared to a net loss of $2.2 million, or $0.02 per share, for the first quarter of 2007.

The company said the loss was primarily attributable to stock awards, and promotional and expansion expenses totalling approximately $3.1 million.

As of March 31, 2008, YTB had $1.3 million in cash and cash equivalents. Net cash used in investing activities was $4.1 million during the first quarter of 2008 compared to $1.3 million used in the first quarter of 2007.

Scott Tomer, chief executive officer of YTB, said: "We are pleased by the significant increase that we experienced in our top-line results during the quarter.

"This growth speaks directly to the demand for our travel related services, and our ability to meet or exceed specific sales growth objectives through diligent execution.

"We are acutely aware that sustainable growth requires reinvestment in our company, and with this in mind, we incurred several charges during the quarter, directly related to the promotion of our brand, and the retention of our top performers and personnel.

"During the quarter, we also incurred expenses related to our expansion into three new countries to help build our international presence. Primarily due to these investments in our company, we reported a loss for the quarter. "