Shares in travel software firm Datalex fall 5% as annual losses rise €2.24m

SHARES in the Dublin-headquartered travel software company Datalex fell by nearly 5% yesterday on the back of it reporting a $3 million (€2.24m) increase in annual losses.

The company — which provides software solutions to a number of companies in the travel industry, including airlines such as Aer Lingus and United Airlines — reported a 221% rise in its pre-tax loss in 2009 to $4.5m (€3.36m).

EBITDA (earnings before interest, tax, depreciation and amortisation) fell from $2m in 2008 to just $100,000 and total annual revenue fell by 18% to $27.1m.

The company attributed the fall in revenue to a reduction in demand for its e-business and consulting services and “a dearth of new business opportunities”.

A reduction in clients’ IT budget spend also hindered the company’s growth chances last year.

On a brighter note however, Datalex said that its transaction revenue increased by 24% or nearly $3m to $13.3m last year and that there are positive signs for the year ahead.

The company said: “The challenges facing the travel industry in 2009 will continue into 2010. While consumer demand is still affected by general economic conditions, the IATA (Internatonal Air Transport Association) has reported some signs of improvement in air traffic in the first quarter.

“At a general level, and in stark contrast to the same period in 2009 — when new business proposals in our market had virtually ceased — this year, we have already seen a number of airlines and travel agencies issue requests for proposals and we are actively pursuing a number of opportunities as travel companies seek to ready themselves for the expected improvement in trading conditions.”

Datalex’s Dublin share price slipped by 1c or 4.67% to 14c yesterday, however.