Travel software firm Datalex edges closer to profitability

Datalex — the Dublin-headquartered international travel software company — has edged closer to profitability, by nearly eradicating its first-half losses.

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 a pre-tax loss figure of $200,000 (€159,200); down by 90% on the $1.9m loss generated in the first half of 2011.

Last year saw Datalex post an annual loss of $3.9m; but the company said yesterday it is on track to deliver 40% EBITDA growth and to return to pre-tax profitability for 2012, as a whole.

While EBITDA is Datalex’s preferred key growth metric; a pre-tax profit for 2012 would mark the first for six years.

First-half revenues amounted to $15.7m; up by 18% on the $13.3m recorded in the corresponding period last year. EBITDA, for the period, was up by 152% on a year-on-year basis to $2.6m.

The company’s cash reserves were up by 18%, year-on-year, to $11.1m and management said that it is confident of growing its cash reserves by more than 20% for the entire year; which would mark its third successive year of positive cash generation.

New business generation has played a major part in Datalex’s growth in recent years. The company added eight new customers to its client roster during 2011 and said it is on target to equal that haul in 2012.

The first six months of the year saw a number of new client wins; particularly in China, the Middle-East and India, where the company previously had no presence.

“Our new business pipeline remains very strong and we remain on course to significantly increase our customer base this year. To date, in 2012, we have secured some important new customers and we’re in discussions with a number of other carriers, and expect to close additional deals during the remainder of the year,” finance director David Kennedy said.