Travelzoo Inc reported better-than-expected quarterly results, helped by an increase in new subscriptions for its local deals newsletters, sending its shares up 13 percent in pre-market trading.

Travelzoo, which offers travel and entertainment deals through newsletters and on its website, said new newsletter subscribers rose 14 percent in the third quarter.

The company is being courted by ChaPaVe Partners -- a firm set up only to acquire up to 1.5 million Travelzoo shares in the open market.

On Oct. 18, ChaPaVe said the conditions it had set for the investment had not been met and it would not file the proposed tender yet. It expects to continue to pursue the offer after the results are released.

For the quarter, it earned 36 cents a share. Analysts on average had expected 34 cents a share, according to Thomson Reuters I/B/E/S.

Revenue at the company, which competes with Expedia Inc and Inc , rose 40 percent to $38.7 million. Analysts had predicted $38.4 million.

Shares of the company were up $3.96 at $34.70 before the bell on Thursday. The stock has lost more than half its value since Travelzoo reported second-quarter results on July 21.