Datalex stays on course for strong growth
Published 22/11/2016 | 02:30
Travel software firm Datalex remains on course to deliver 15-20pc growth in full-year earnings following "continued, strong momentum" in its business.
In a trading update yesterday, the Dublin-based company noted that its sixth Chinese airline customer is set to go live with its product at the end of the year.
"This further strengthens our position in the strategically important Chinese market, and we are confident of additional customer signings there in the coming months," according to the company.
At the end of the third quarter, Swiss International also went live with Datalex's platform. Lufthansa is also in the process of deploying the Datalex product on its system.
Datalex's product helps airline customers make more money by being able to offer extra services and products to passengers when they're booking tickets, for example.
The company's clients include airlines all over the world.
Datalex's major shareholders include billionaire Dermot Desmond's IIU vehicle, which has a stake of just over 27pc. Pageant Holdings, an investment company controlled by businessman Nick Furlong, owns 11.4pc, while Datalex chairman Paschal Taggart owns 3.4pc.
Datalex, whose chief executive is Aidan Brogan, said that between July and the end of October, its platform revenue - a key metric for the group - rose 12pc compared to the third quarter of the previous financial year. It did not give a monetary figure.
Davy Stockbrokers said that increase was "particularly strong", given that US carrier JetBlue had gone live with the Datalex product during the third quarter last year.
The broker reckons that Datalex will generate adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of $12.2m in the current financial year, which will be a 17pc year-on-year increase.
Davy is also pencilling in a 26pc increase in Datalex's adjusted EBITDA for the following financial year.
The pace of growth at Datalex has seen it hire 80 extra employees so far this year. Those new appointments include Blair Koch, who joined Datalex last month as its chief technology officer. He joined from JetBlue, where he was vice president of technology and integration.
Earlier this year, Datalex said it planned to hire 200 extra staff to cope with its expansion.
Datalex said it is working on a number of new product features, including digital payments. It's developing a virtual payments capability.