Datalex pays first dividend after surge in revenues

Datalex, a provider of ecommerce and retail solutions to the travel industry, is to pay its first ever dividend after reporting a sharp rise in net profits and revenue for the year to the end of December.

The company recorded an 18 per cent increase in total revenue to $38.1 million (€27.5 million) for the year, compared to $32.4 million a year earlier. Transaction revenue accounted for$17.5 million of all revenues, up 19 per cent on the $14.7million announced for 2012.

After tax profits were up 43 per cent to $1.6 million (€1.1 million) from $1.1 million and there was a 26 per cent increase in adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) to $7.5 million from $6million a year earlier.

Datalex, which said one billion people had used its software to shop for their travel needs last year, announced its first ever dividend of two cents per share.

Founded in 1985, the company, which trades on the Iseq, is headquartered in Dublin and maintains offices across Europe and the US.

"2013 has been a year of performance and growth in our business, as we continue to achieve double digit percentage growth in adjusted Ebitda, revenue and cash. We have signed significant new contracts with leading airline brands, such as JetBlue and Virgin Atlantic which secure transaction revenue growth in the medium term," said chief executive Aidan Brogan.

The company predicted a rise in its existing customer base this year, which will drive an 18 per cent to 20 per cent growth in adjusted Ebitda.