Datalex maintains 20% earnings growth outlook

Dublin-based international travel software provider, Datalex has said it remains on course to achieve previously-guided earnings growth of between 18% and 20% this year, despite market challenges.

In a trading update, covering the four months to the end of October, the company said yesterday that it also remains on course to increase its cash reserves and new customer wins will drive its transaction revenue growth into 2015.

“2014 is a year of investment, performance and growth for us, with significant new deployments and investment in new infrastructure to scale our business for the future. Our new customer signings and ‘go lives’ in 2014 will help secure continued growth in our business in the coming years,” management said.

“Despite challenges in the business environment in 2014, including the impact of the weak dollar during the first eight months of 2014, we are confident that our full-year guidance will be achieved,” it added.

Datalex provides software solutions to travel companies like Amadeus and Trailfinders, but the bulk of its customer base comprises international airlines such as Aer Lingus, South African Airways, Virgin Atlantic, Air China, Fiji Airways and Delta.

Earlier this year, the company announced a five-year growth strategy, which will include a broadening of its product offering and its client roster, with it looking to expand into non-aviation-based travel with the addition of rail operators to its clientele.

Yesterday, it said it had picked up another client — an unnamed European airline — in the third quarter and it and other recent additions will drive revenue growth.