Software firm sees global customer base pay off

Irish travel software firm Datalex is continuing on an upward curve with new customers driving revenue growth in the first half of the year.

The firm specialises in providing ecommerce and retail software solutions to a number of the world’s biggest airlines. It delivered revenues of $20.8m (€18.25m) for the first six months of the year.

The 3% revenue growth was achieved despite foreign exchange movements which acted as a drag on growth.

Platform revenue — the company’s key value driver — climbed 11% in the period, which was ahead of analyst projections.

A number of new customers, including jetBlue, Abacus, and Edelweiss, have come on board since January, helping to drive growth over the subsequent months.

A number of previously acquired customers also began contributing to a greater degree, with China’s West Air, Canadian airline Air Transat, and Brussels Airlines all going fully live, having been signed up in the second half of last year.

Operating costs driven by product development projects and increased depreciation and amortisation climbed 5% in the period to $20.6m.

Adjusted earnings, before interest, taxes, depreciation, and amortisation, of $3.8m remained stable compared with the same period last year.

Datalex shares yesterday climbed by close to 2.5%, ending the day at €2.10.

The half-yearly results were greeted warmly by analysts who were particularly impressed with Datalex’s platform revenue growth.

“Datalex continues to impress with its ability to grow platform revenue — its key revenue driver — while establishing the foundations for further growth,” said Davy Stockbrokers analyst Ross Harvey.

“While the first-half numbers are rock-solid, what really stands out is the combination of its third customer in China, the recent go-live at jetBlue, and further strengthening of its pipeline.

The Dublin-headquartered company’s policy of pursuing Asian growth appears to be paying dividends. Last summer, Datalex established an office in Beijing and appointed a Shanghai-based localisation partner which has helped take advantage of the region’s huge growth prospects.