TIDM0OPM TIDMDLE
RNS Number : 2861N
Datalex PLC
22 September 2023
Datalex plc
H1 2023 Interim Financial Report
Growth Returns
Sustainable revenue growth in line with increase in global
airline
passenger numbers across all markets
Dublin, Ireland - 22 September 2023: Datalex plc (the "Company"
or the "Group") (Euronext Growth Dublin: DLE), a market leader in
digital retail technology focused on the airline market, today
announces its results for the six months ended 30 June 2023 ("H1
2023").
Significant developments
-- In H1 2023, the Group's total revenues increased by 24%
during the period (in comparison to H1 2022). This year- on-year
improvement is primarily attributable to increases in services
revenue as activation of new customers continue and existing
customers invest in technology post covid.
-- Significant new customer win, with the signing of LATAM, the
largest carrier in Latin America. With upcoming customer go-lives,
revenue and profit growth throughout the contract's duration will
flow after the initial investment in deploying our product suite.
This trend was further demonstrated in the period when the Group
successfully renewed four key airline customers, Air China, Air
Transat, Edelweiss and JetBlue, all of which secure transaction
revenue for the next 3-5 years.
-- Our 26% increase in cost of sales over the period is closely
tied to an uptick in customer activations. Each activation requires
an initial investment to ensure delivery, with returns realised
over the contract's duration after the go-live phase.
Financial highlights
-- Total revenue for the six-month period ending 30 June 2023
was $12.9 million, a 24% increase versus the same period in 2022
(H1 2022: $10.4 million).
-- Services revenue of $6.1 million increased by 61% in
comparison to H1 2022 (H1 2022: $3.8 million).
-- Platform revenue of $6.3 million increased by 7% in
comparison to H1 2022 (H1 2022: $5.9 million).
-- Total operating costs before exceptional items in the first
half of 2023 increased by 30% to $18 million (H1 2022:
$13.8 million).
-- Adjusted EBITDA loss of $3.1 million in H1 2023, an increase
of $1 million versus the same period in 2022 (H1 2022: EBITDA loss
$2.1 million).
Customer Developments
A new airline was added to our customer base in May 2023, with
the signing of Latan America's largest airline, LATAM Airlines. A
significant development for Datalex, as one of the world's leading
airlines has chosen the Group's technology to enhance their
indirect NDC channels. I n addition to this, the successful renewal
of four key airline partners during the period, including Air
China, Air Transat, JetBlue, and Edelweiss took place in the
period.
As previously disclosed on the back of SAS filing for US Chapter
11 in July 2022, in February SAS confirmed they are not proceeding
with Datalex's NDC Product due to increased Chapter 11 cost
commitments. On 1 September 2023 a US Bankruptcy Court approved a
settlement between Datalex and SAS which resulted in a payment from
SAS to Datalex and allowed a general unsecured claim by Datalex,
which will be dealt with through the Chapter 11 process and as such
is uncertain as to timing and quantum. On 13 th September 2023 it
was announced that following an internal review of their next
generation program priorities, Virgin Australia would be ending its
partnership with Datalex and other impacted vendors. While this is
a disappointment to both Datalex and the Virgin Australia teams who
have worked on this project for over 18 months, the parties have
reached a mutual agreement on the terms of the cancellation.
Commenting on the results Sean Corkery the CEO said: 'I am
satisfied that we are now seeing the benefits of airline recovery
matched with our new transaction-based SaaS contracts allowing for
closer industry correlation. In addition, we are executing well and
investing in activation of new customers which will fuel additional
transactions in 2024'.
Financing Update
On 14 September 2023, the Group agreed an additional credit
facility with Tireragh Limited ("Facility C") that provides access
to an additional EUR5m funding for the Group. All amounts drawn
under the Group's facilities with Tireragh Limited are required to
be repaid by 31 December 2024. At the date of this report, the
Group had drawn EUR13m of these credit facilities. All amounts
drawn under the Group's facilities with Tireragh Limited are
required to be repaid by 31 December 2024. The Board, together with
its financial advisers, continue to explore further fundraising
options.
Trading update & outlook
Throughout the initial half of 2023, robust growth in passenger
traffic was accomplished across all regions, marking substantial
strides toward the restoration of pre-pandemic travel volumes.
This, complemented by continued progress in key customer
activations, means we remain confident in achieving revenue growth
of approximately 15% for the year as communicated during our
Capital Markets Day in London on 10 May 2023.
H1 2023 Interim Report
Datalex's H1 2023 Interim Report for the six months ended 30
June 2023 is available to view on www.datalex.com/investors and
will shortly be available for inspection at
http://www.rns-pdf.londonstockexchange.com/rns/2861N_1-2023-9-21.pdf
H1 2023 results presentation
Management will review the H1 2023 results on a conference call
at 11:30 am Dublin time today. A copy of the presentation will be
available on our website at investors.datalex.com and the call
details are provided below:
Microsoft Teams meeting
Join on your computer, mobile app or room device
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Meeting ID: 349 194 020 199
Passcode: fjBwQ9
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Or call in (audio only)
+353 1 566 1167,,764951746# Ireland, Dublin
Phone Conference ID: 764 951 746#
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Learn More | Meeting options
Notes
The financial information in this announcement is not audited
and does not constitute statutory financial statements of Datalex
plc.
IFRS 15 recognition rules specify that timing of revenue
recognition may be affected by factors outside our control, for
example, including the credit rating of our customers. This may
impact on the timing of recognition of forecast revenues and costs,
as included in this guidance statement.
Adjusted EBITDA (Note 4) is defined as earnings from operations
before (i) interest income and interest expense, (ii) tax expense,
(iii) depreciation and amortisation expense, (iv) share-based
payments cost and (v) exceptional items (see Note 7).
This announcement contains certain forward-looking statements.
Actual results may differ materially from those projected or
implied in such forward-looking statements. Such forward-looking
information involves risks and uncertainties that could
significantly affect expected results. Those forward-looking and
other statements speak only as at the date of this announcement.
Datalex undertakes no obligation to update any forward-looking
statements. No statement in this document is intended as a profit
forecast or a profit estimate and no statement in this document
should be interpreted to mean that earnings per share for the
current or future financial years would necessarily match or exceed
the historical published earnings per share.
Statements contained in this announcement are based on the
knowledge and information available to the Board at the date it was
prepared and therefore facts stated, and views expressed may change
after that date. Nothing in this announcement is intended to
constitute an invitation or inducement to engage in investment
activity. This announcement does not constitute or form part of any
offer for sale or subscription of, or any solicitation of any offer
to purchase or subscribe for, any securities nor shall it or any
part of it nor the fact of its distribution form the basis of, or
be relied on in connection with, any contract, commitment or
investment decision in relation thereto. This announcement does not
constitute a recommendation regarding any securities.
Contact information
Investor Enquiries
Neil McLoughlin, Datalex plc
+353 1 806 3500
neil.mcloughlin@datalex.com
Media Enquiries
Eavan Gannon, Powerscourt
+353 87 236 5973
Datalex@powerscourt-group.com
About Datalex
Datalex's purpose is to transform airline retail. Datalex is a
market leader in airline retail technology, offering unique
products that enable airlines to drive revenue and profit as
digital retailers. Datalex has a strong track record of delivering
digital retail transformation for progressive airline brands
worldwide.
The Group is headquartered in Dublin, Ireland, and maintains
offices across Europe, the USA and China. In 2023, Datalex was
awarded the 'Great Place to Work (R) ' and 'Best Workplaces in
Tech(TM)' certifications. Datalex plc is a publicly listed company,
on Euronext Growth, Dublin.
Learn more at www.datalex.com
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END
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