Business News

Datalex reports 26% growth in adjusted EBITDA

By Business & Finance
25 March 2014

Datalex plc, a leading provider of ecommerce and retail solutions to the global travel industry, today announced final results for the year ended December 31st 2013.

In 2013 Datalex delivered its fourth consecutive year of double digit percentage growth in both adjusted EBITDA and cash and has set the foundation for continued growth in the years ahead.

The financial highlights for the year include:

  • Total revenue up 18% to US$38.1m
  • Transaction revenue up 19% to US$17.5m
  • 26% increase in Adjusted EBITDA[1] to US$7.5m
  • Net profit up 43% to US$1.6m
  • Earnings per share up 41% to 2.24 cents
  • 15% increase in cash reserves to US$16.9m
  • First ever dividend proposed of two US cents per share

Aidan Brogan, CEO of Datalex plc said: “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. As a strong statement of confidence in the company’s growth prospects, I am also pleased to report that the Board has proposed the payment of the first dividend in the company’s history.”

He added: “Our goal is to be the leading provider of travel retail capabilities to the global travel industry. With that in mind we have developed a five year growth strategy based on three distinct horizons which we are confident will deliver double digit percentage annual growth in Adjusted EBITDA in the period to 2017.”

According to Brogan, the main drivers of growth will be customer acquisition, product expansion and selective strategic partnerships to leverage the existing investment in the company’s product. “Our 2013 results represent a strong start to our plan and helps validate our medium term goals,” he said.

Paschal Taggart, chairman of Datalex plc said: “The company has developed an ambitious five year strategy to deliver significant growth in shareholder value, primarily through organic expansion and selective strategic partnerships. Given the projected growth in the business and increasing cash conversion, we believe that our balance sheet strength supports the commencement of a dividend policy.”

Targets for 2014 for Datalex include to:

  • Open an office in Beijing to directly serve the strategically important Chinese market.
  • Continue to invest in the company’s data centre and hosting infrastructure to support growth and to ensure the company has a market leading solution for its customers.
  • Invest in the key retail capabilities and skills sets that will enable Datalex to retain its position as the leading supplier of retail solutions to the travel industry.