Datalex expects 2011 net growth

MANAGEMENT at Irish travel software company, Datalex is predicting net growth this year after the company managed to significantly narrow its pre-tax losses last year.

The Dublin-headquartered company — which provides software solutions to a number of companies in different areas of the travel industry, including airlines such as Aer Lingus, South African Airways, Continental Airlines and United Airlines — yesterday reported a pre-tax loss of $2.1 million (€1.5m) for 2010; down by 52% on the $4.5m loss generated in 2009.

EBITDA (earnings before interest, tax, depreciation and amortisation) for the year went from $100,000 to $3.1m, while total revenue dipped by 1% to $26.8m.

The general improvement in the results was a direct result of the travel industry gradually beginning to emerge from the difficulties of the previous year’s economic collapse, according to the company. That trend has led the company’s management to forecast a positive outlook for the current year.

“The improvements in the travel industry — particularly in the second half of 2010 — have continued into the early parts of 2011. Challenges remain, with an uncertain global economic outlook and oil price volatility. Nevertheless, we maintain an optimistic outlook in 2011,” the company said, pointing to its market leading product portfolio and efficient business model to back up its claims.

The company added that it has continued to strengthen its new business pipeline and is currently pursuing “a number of opportunities” to expand its customer base.

Six new customers were added to Datalex’s roster during 2010 (a year during which the company was named as the world’s leading internet booking technology provider and travel distribution solution provider, at the World Travel Awards), including Air China — thus providing the Dublin company with strategic entry into the world’s fastest growing market.

Management added: “The majority of contract completions are leading to renewals, and we’re confident that these renewals, together with the new business we’re winning, will lead to net business growth in 2011.”