REG - Datalex PLC Datalex PLC - DLE - 2022 Guidance Update

DatalexAnnouncement

24/11/2022 07:00

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RNS Number : 4237H  Datalex PLC  24 November 2022

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014. With the publication of this
announcement, this information is now considered to be in the public domain.

 

Datalex plc

 

2022 Guidance Update

Dublin, Ireland, 24 November 2022: Datalex plc ("Datalex", the "Company" or
the "Group") (Euronext Growth Dublin: DLE) today provides an update to
guidance for 2022 due to the ongoing impact of Covid restrictions on its
Chinese customers and the timing of specific services projects which will move
from 2022 to 2023.

Earlier in the year when providing its 2022 outlook, the Company anticipated
that the Chinese market would experience a material recovery in the latter
half of the year versus H1 2022. This recovery has not materialised due to
continued lockdowns in key cities in which Chinese customers operate. As a
result, our revenues and earnings derived from China will be negatively
impacted in H2 2022.

Elsewhere, Datalex has continued to see strong engagement with customers as
they seek to accelerate their digital retail roadmap, which is providing a
number of enhanced opportunities for the Company. However, partly as a
consequence of planning for the delivery of such opportunities, it is now
expected that services activity levels will be lower than expected in H2 2022
as certain projects move out to 2023. This will negatively impact 2022
revenues but will positively contribute to growth in 2023.

Based on the current performance and trajectory, the Group now expects to
report Revenue of $22.5 million to $23.5 million and Adjusted EBITDA of -$5
million to -$6 million for FY 2022 (see notes below regarding basis of
preparation).

Sean Corkery, CEO said: "While short term forecasting has continued to be
difficult, we remain confident in the ability of our business to grow in the
medium to long term. Airlines are focused on accelerating their digital
offering and Datalex is very well placed to assist them.

I am really encouraged by the strong engagement the team is having with
current and prospective customers across the globe as we continue to execute
on customer renewals and build on our robust pipeline of potential new
customers. In addition, I am happy to report that the activation of our new
customers, easyJet and Virgin Australia is progressing well. All of which we
expect to result in meaningful revenue growth in 2023 and beyond."

 

Contact information

Investor Enquiries

Neil McLoughlin, Datalex plc

+353 1 806 3500

investor.relations@datalex.com (mailto:investor.relations@datalex.com)

 

Media Enquiries

Eavan Gannon, Powerscourt

+353 87 236 5973

Datalex@powerscourt-group.com (mailto:Datalex@powerscourt-group.com)

 

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.

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, China and Australia.

In 2022, Datalex was awarded the 'Great Place to Work®' and 'Best Workplaces
in Tech™' certifications.

Datalex plc is a publicly listed company, on Euronext Growth, Dublin.

Learn more at www.datalex.com (http://www.datalex.com)

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