Datalex revenues increase by 14%

Travel software company Datalex has reported a 14% increase in revenues in the first half of the year, thanks largely to the addition of a number of new customers.

Total revenue for the Irish e-commerce software specialists amounted to $20.2m (€15.33m) for the opening half of the year — a 14% increase on revenues in the same period last year.

Costs however also rose in the period; increasing by 13% to $19.6m (€14.88m) as the weakness of the dollar against the euro hit the company for $500,000.

Commenting on the results, Datalex chief executive, Aidan Brogan said the company was pleased with the results and denied foreign exchange issues were of particular concern going forward.

“We are pleased with the results, they represent strong growth on 2013, and our investment this year, together with the new signings will drive growth in 2015 and beyond. Foreign exchange is just one issue we need to manage in our cost base... we are not particularly worried about it,” said Mr Brogan.

The company’s net profit after tax was $600,000, up from $200,000 the previous year while adjusted EBITDA increased by 23%.

In the opening six months of the year, the company signed a number of significant new customers including New York-based JetBlue Airways; Brussels Airlines — a member of Lufthansa Airlines Group; and Air Transat.

Additional new customers are being pursued with further announcements expected.

In March, the Dublin based firm announced its intention, as part of a three phase, five-year growth plan, to expand its client roster beyond airlines, by adding rail service operators and more travel agency customers to its books.

Mr Brogan said partnerships with “players in other travel verticals”, which will deliver new customers and additional revenues, are expected in the second half of the year.

In June, Datalex announced the opening of a new office in Beijing, a move it says is part of its efforts to scale the business and aimed at targeting the strategically important Chinese market.

Despite ongoing concern over the airline industry, Datalex says it remains confident of achieving 18%-20% growth in adjusted EBITDA this year.