Revenue at Datalex rises as tech firm expands business

Software firm Datalex said its revenue and earnings grew in the first half of the year as the company continued to grow its business.

The company, which offers digital commerce and retail solutions for the travel industry, said its revenue rose 17 per cent to $24.4 million in the first six months of this year, with platform revenue up 11 per cent to $11.8 million.

Services revenue, meanwhile, grew by $2.5 million to $11.5 million as it deployed its products to more new customers and added new features for existing customers.

Profit after tax rose to $1.3 million, from $300,000 a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation rose by 22 per cent to $4.6 million.

The company said the growth was driven by the contribution from US airline Jetblue, which went live last year, and a number of new Chinese carriers. During the six-month period the company extended its relationship with the Lufthansa Group of airlines, and began the deployment of its sixth customer in China. It also signed a deal with IBM to develop products in digital commerce and cognitive computing.

Operating costs rose 12 per cent to $23 million, driven mainly by a rise in costs for staff and contractors. Datalex is currently increasing its staff numbers, with plans to create 200 new positions by the end of next year.