Datalex shares jump by over 2% on earnings growth

Shares in Dublin-based travel software company Datalex jumped by over 2% yesterday on the back of the firm reporting double-digit revenue and earnings growth for last year and suggesting a number of recent deals strongly position the business for further growth.

The company, which provides e-commerce and retail software solutions to many of the world’s leading airlines and travel firms, yesterday reported a 15% increase in platform revenue to $26.4m (€24.3m), an 18% rise in adjusted EBITDA to $12.2m, a 29% jump in post-tax profit to $5.4m and a 27% rise in basic earnings per share to 7.22c.

Datalex — whose share price has already risen by 12% since the start of the year — also grew its cash reserves by 12%, during the year, to $24.3m and proposed a 25% increase in full-year dividend to 5c per share.

Management said that a number of “significant developments” — including deals with China’s Hainan group of airlines; Swiss International Airlines; IBM; Chinese software services group Neusoft and Lufthansa — will underpin growth in the years ahead.

“Our selection by the Lufthansa Group and our new partnership with IBM represent significant validations of both our product and our market strategy, and as a result we are seeing a strengthening of our pipeline of new business opportunities, particularly among larger carriers. Our collaboration with Neusoft will help us scale in the Chinese market,” said chief executive Aidan Brogan.