Datalex confident of further growth in China

Dublin-based travel software firm Datalex continues to see China as a main avenue for growth, as tourism demand increases among the country’s middle class.

The company — which provides e-commerce and retail software solutions to many of the world’s leading airlines and travel firms — has been targeting the Chinese market over the past couple of years.

It has an office in Beijing and counts Air China as a key customer.

Its fourth Chinese customer went live on its technology platform this month and management is confident of unveiling a number of new business wins later this year.

“We have a strong pipeline of opportunities, particularly in high growth markets such as China,” said Datalex.

“We are also engaged in ongoing discussions with a number of potential new customers and expect to announce additional new signings during 2016.”

Datalex yesterday reported post-tax profits of $4.2 million (€3.7m) for 2015, up by 55% on the previous year, with adjusted earnings (ebitda) amounting to $10.4m and total revenue up 1% at $47m.

A 33% increase in dividend — only its second annual dividend payment ever — to 4c per share has also been recommended.

Management said 2016 trading has started well and has guided for 20%-25% adjusted earnings growth for this year.

“We see an ever-increasing market opportunity for Datalex, as growing numbers of large airlines acknowledge that the digital commerce system is now the primary channel for customer engagement,” the company said.

“As a result, we expect to maintain this adjusted ebitda growth trajectory over the medium-term.”

The company’s share price was up by nearly 1% yesterday.