Revenue rises as Datalex cuts losses

Dublin-based international travel software company Datalex cut its losses by over 30% last year, while growing revenue by 4%.

The 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 total revenue of $28m (€21m) for last year; up from a figure of $26.8m for 2010.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 42% to $4.3m, before exceptional items totalling $2.5m were taken into account, and the company’s pre-tax losses came in at $1.4m, down on the previous year’s loss of $3.1m.

The company added a number of clients to its roster — among them, Delta Airlines, Westjet Airlines in Canada, the Fiji-based Air Pacific and Malaysian Airlines.

Datalex’s chief financial officer, David Kennedy, said that the company’s 2011 performance bodes well for further progress in the current year.

“While challenges still remain — as evidenced by the cessation of operations by Spanair in January of this year — our new business pipeline remains strong and we’re confident that our business will continue on a solid growth trajectory, and deliver further significant growth in EBITDA, cash generation and enterprise value through 2012,” he said.

“Airlines are recognising their business is not simply transport, but retail and their customers are travellers, not passengers. Airlines continue to develop merchandising and retail strategies to maximise the revenue opportunity.”