Datalex forecasts earnings growth

Datalex — the Dublin-headquartered international travel software company — hopes to show 25%-30% adjusted earnings growth for this year.

Earlier this year the company — which provides many of the world’s airlines and travel firms with e-commerce software — reported a net profit of $1.1m (814,236) for 2012; the first time it posted an annual profit for six years.

Yesterday, via its latest trading update, Datalex’s management said that operating performance for the year to date is in line with expectations, with transaction revenue up by 15% year-on-year. It added that the company’s new business pipeline remains strong, with it recently being selected as preferred supplier to currently unnamed airlines in the US and South Africa.

Both of those contracts are due to be concluded and deployed before the end of the year. The company was also chosen as the leading travel merchandising solution provider, in the US, at the recent regional World Travel Awards.

“Our pipeline contains a number of other prospects at varying stages of progress, and we expect to sign additional new customers in the coming months,” yesterday’s statement said.

Regarding outlook, management reiterated its adjusted EBITDA growth guidance — initially made, earlier this year, on the back of a strong first half performance — and said it hopes to continue to grow its customer base, thereby providing a platform for sustainable earnings growth in the years ahead.

It added: “Whilst challenges remain, both in the global airline industry and in our own marketplace, we have made good progress to date in 2013, and we remain on track to deliver on guidance.”

Back in August, Datalex, which counts the likes of Aer Lingus, Delta Airlines, Trailfinders, Air China, KLM and Best Western as clients, reported a 13% year-on-year jump in first half revenues to nearly $18m and net after-tax profits of $200,000.

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