Saturday, July 13, 2024

Datalex reports return to revenue growth

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The group, which helps customers streamline retail offerings to passengers, recorded total revenue of $28.9m (€26.06m) for 2023.

This was up 23pc from a year earlier.

Platform revenue increased 17pc to $12.9m as a result of a material increase in transaction volumes throughout the year, particularly in the Asian market.

Services revenue rose by a quarter to $14.1m following new customer activation projects.

In an update, the company also reported an adjusted loss in earnings before interest, tax, amortisation and depreciation (Ebitda) of $2.9m.

This was an improvement of $2.4m from the 2022 loss of $5.3m.

Loss after tax for the year was $9.1m last year, an improvement from a loss of $11.5m reported in 2022.

Datalex renewed partnerships with a number of airlines throughout the year, including Air China, Air Transat, JetBlue and Aer Lingus.

It is also working on an activation project with easyJet.

Aer Lingus and Air China are among the airlines that will migrate to the group’s new platform products.

The airline software firm also pointed to the end of projects with a number of other customers over the year, including Virgin Australia, which made changes to plans for its internal retail programme. This move impacted Datalex’s work with the airline, it reported.

SAS also filed for chapter 11 bankruptcy in the USA last year, while Datalex also confirmed that it will not proceed further with an agreement with LATAM Airlines, which was first signed last year.

Datalex also secured another loan facility of €5m during the year from a company controlled by billionaire Dermot Desmond.

This brings its total loan facility to €15m with a repayment date set for the end of this year.

Around €13m has been drawn down so far.

Datalex is also working with advisors on planned equity funding to pay back this loan facility, as well as to provide enough working capital to invest in upcoming product launches and activations.

The move is supported by Mr Desmond, who owns just under 30pc of the stock market-listed software firm. Mr Desmond has told the group that he will procure support for the planned fundraising.

If Datalex does not complete this fundraising, Mr Desmond’s Tireragh vehicle has confirmed that it will extend the termination date of the loan facility to the beginning of July next year and will provide a new loan of €10m if needed.

Chief executive Jonathan Rockett said that contract renewals have set a “solid foundation for future growth.”

“These renewals, along with the related investment by these airlines to migrate to Datalex’s latest product suite, are not only a testament to the value of our long-standing partnerships with customers, but also a vote of confidence in where Datalex is bringing its products over the next 3 – 5 years,” Mr Rockett said.

He added that the group had signed a number of new customers over the past 18 months, while the renewals last year had boosted recurring revenues for the medium term.

Mr Rockett joined the business in the final quarter of 2023 after former boss Sean Corkery announced his plans to retire last September.

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