Datalex sees revenues soar after 'robust' start to 2013
Irish travel software firm Datalex said it has had a "robust" start to its financial year, with revenues in the first six months of 2013 jumping 13pc to $17.7m (€13.3m).
The company, whose major shareholders include financier Dermot Desmond's IIU vehicle with a 28pc stake, said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 18pc in the period to $3.1m.
The results were in line with expectations, while Datalex said it remained "comfortable" with guidance of a rise of between 25pc and 30pc in adjusted EBITDA for the entire year.
Datalex's products help airlines to enhance merchandising opportunities in order to boost income from passengers at a time when higher fuel costs can disrupt profitability.
Among the company's clients are Aer Lingus, Delta and Air China. Virgin Australia has just gone live with a Datalex solution, while Omanair should do so later in the third quarter.
The firm has also inked strategic partnerships with Hewlett-Packard Enterprise Services and 'big data' company PROS.
Chief executive Aidan Brogan said that Datalex's transaction revenue was 11pc higher at $8m during the first half of 2013, reflecting the impact of new customers that went live last year and early this year.
He said that service revenue also experienced strong growth in the period, increasing 21pc to $8m. That was primarily driven by revenue associated with new customer deployments and further development of existing customer solutions.
Datalex's cost base rose 10pc to $17.4m in the first half of 2013, reflecting increased deployment of its travel distribution platform.
Last year, Datalex posted its first ever net profit as a publicly listed company, with a tax gain helping to boost the figure.
Other shareholders in Datalex include its chairman, businessman Paschal Taggart, who has a 3.7pc stake in the company. Pageant Holdings, the investment vehicle of businessman Nick Furlong, also has a substantial stake.
It's been speculated for some time that Datalex would be a take-private target. Its shares were up 4.5pc in late morning trade yesterday, marking a 12-month high and valuing the company at €67.1m.