Datalex enjoys 25% bounce in profit on foot of ‘robust growth’
Dublin-listed travel software firm sees double-digit growth across key metrics
Aidan Brogan chief executive of Datalex pictured at their office at East Point Dublin.Photograph: Cyril Byrne / THE IRISH TIMES
Datalex, the Dublin-listed travel software firm with links to businessman Dermot Desmond, saw after tax profit jump 25 per cent to $2 million (€1.7 million) in the six months to the end of June this year.
Total revenue for the six-month period grew by 5 per cent to $31.9 million, which included a 10 per cent increase in platform revenue to $14.1 million.
The company said the increase was mainly driven by “robust organic growth” across its existing customer base.
Datalex, whose clients include airlines such as Aer Lingus and Lufthansa, said adjusted earnings before interest, taxation, depreciation, and amortisation (Ebitda) grew 14 per cent to €6.1 million. This reflected both growth in platform revenue and improving services revenue margins, it said.
The first half of 2018 was another period of strong performance for Datalex, with double digit growth across key metrics including platform revenue, adjusted Ebitda and profit after tax, the company said.
Chief executive Aidan Brogan said: “I am pleased to report a strong financial performance in the first half of 2018.” “We remain on track to deliver on our strategy to grow our business, which will underpin Ebitda growth in the coming years,” he said.
“ We have a strong sales pipeline, and will make new customer announcements in the coming months and an investment program which will allow us to take advantage of the growing market opportunity in digital commerce for travel retail,” Mr Brogan said.
Looking ahead, the company forecast double digit growth in Aadjusted Ebitda over the period 2018 – 2020.
Our performance in the first half of 2018 represents solid progress towards this objective, with strong performance across a number of key metrics, and continued progress on a number of key new customer deployments,” it said.
Davy Stockbrokers described Datalex’s results as solid, highlighting that platform revenue growth of 10 per cent as “notable because it is all organic, achieved through a mix of higher customer volumes and added functionality.”
“ The company is in advanced negotiations with a number of major airlines, and new customer contracts will be announced in the coming months,” Davy said.