Firm reports first profit in 6 years

Dublin-based international travel software provider Datalex has forecast earnings growth of between 25% and 30% for this year, on the back of reporting its first profit in six years.

The company — which provides many of the world’s airlines and travel firms with e-commerce software — yesterday reported a net profit of $1.1m (€848,000) for 2012, marking the first time the company has posted a full-year profit since 2006.

Total revenue was up by 15% to $32m, while EBITDA — earnings before exceptional items — rose by 33% to $5.8m. An earnings per share figure of 1.59c was recorded against a loss per share of 1.91c for the previous year. Datalex also increased its cash reserves by 17% to $14.6m.

Its clients include Aer Lingus, Delta Airlines, Best Western, Amadeus, Trailfinders, Air China, and KLM. New client wins continued a strong trend seen in 2011, with Oman Air, Virgin Australia, and major Indian and Chinese carriers signing up.

The company said product deployments at a range of leading clients drove a 37% increase in service revenue to $14.1m.

Datalex chief executive Aidan Brogan said the arrival of a net profit marked “a significant milestone” for the company.

“Our e-commerce products and optimisation of ‘big data’ are crucial to our airline customers, driving growth in their revenue and margins,” he said.

Datalex’s software makes it possible to book airline tickets and travel accommodation online; and airlines’ continuous bids to up their ancillary revenues increases the firm’s revenue haul.

A strategic re-seller partnership agreement — with an unnamed IT company — is set to close in the next four to six weeks, which should extend Datalex’s customer base and enhance its 2014 performance.

“Challenges remain — both for our business and our customers — but we are confident in our ability to perform and grow in the future,” Mr Brogan said.