REG - Datalex PLC Datalex PLC - DLE - H1 2023 Interim Financial Report

DatalexAnnouncement

22/09/2023 07:00

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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. In 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 13th 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 €5m
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 €13m 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
(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

 

Click here to join the meeting

 

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 (mailto:neil.mcloughlin@datalex.com)

 

Media Enquiries

Eavan Gannon, Powerscourt

+353 87 236 5973

Datalex@powerscourt-group.com (mailto: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®' 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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