REG - Datalex PLC Datalex PLC - DLE - Trading Update for Year ended 31 December 2023

DatalexAnnouncement

20/03/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240320:nRST4936Ha&default-theme=true

RNS Number : 4936H  Datalex PLC  20 March 2024

 Datalex plc

 

Full Year Trading Update for Year ended 31 December 2023

 

 

Dublin, Ireland, 20 March 2024: Datalex plc ("Datalex", the "Company" or the
"Group") (Euronext Growth Dublin: DLE), a market leader in airline e-commerce
solutions, today provides an update on trading for the period 1 January 2023
to 31 December 2023.

 

2023 was a turnaround year for the global aviation industry. Datalex
benefitted from this recovery and reports positive revenue growth in 2023, as
passenger traffic volumes further recover and airlines continue to invest in
their e-commerce technology.

 

Key Highlights:

 

The Group expects to report the following headline figures for the year ended
31 December 2023 (unaudited):

 

›       Total revenue for 2023 was $28.9 million, a 23% year-on-year
increase (2022: $23.5 million).

›       Platform revenue increased by 3% to $11.5 million (2022: $11.1
million) and services revenue increased by 47% to $16.4 million (2022: $11.2
million). Services revenue growth is primarily attributable to the increased
volume of activation and transformation projects that occurred in 2023. These
projects will positively impact platform revenue in future years.

›       Total operating costs before exceptional items in 2023
increased by $0.3 million to $35.3 million (2022: $35.0 million).

›       Adjusted EBITDA loss of $2.9 million for 2023, which is an
improvement of $2.4 million versus 2022 (2022: Adjusted EBITDA loss $5.3
million).

›       Loss after tax for the Group for 2023 fell to US$9.1 million
compared to a loss after tax in 2022 of US$11.5 million.

›       Our cash as at 31 December 2023 totalled US$5.8 million (2022:
US$6.5 million). A net cash outflow from operations (US$7.1 million) and
outflows to fund product development (US$1.4 million) were offset in part by
proceeds of borrowings (US$8.6 million), contributing to a decrease in cash of
US$0.8 million during the year.

 

Outlook:

 

The Group entered 2024 with a strong recurring revenue base and has a solid
pipeline of growth that will be unlocked as new customers are activated
further. During periods of heavy activation, services revenue will be elevated
relative to platform revenue. Activations timelines are dependent on customer
requirements. As go-live milestones are achieved, higher margin platform
revenue is expected to materially drive revenue growth, with expectations that
this will be most pronounced commencing in 2025.

 

Jonathan Rockett, CEO, commented:

 

"The Group achieved a number of positive milestones during 2023 that have set
a solid foundation for 2024 and beyond.

A significant step in 2023 was the renewal of our partnerships with Air China,
Air Transat, JetBlue, Edelweiss and Aer Lingus. In addition to these renewals
with existing customers, the Group entered into new partnerships with LATAM
Airlines and Air Macau in 2023. Another highlight was EasyJet going live with
our Merchandiser product - being the start of a multi-year activation project.

We have a number of transformation projects continuing in 2024 and 2025 for
our new and existing customers. These projects are important steppingstones to
unlock value for our customers and for Datalex.

We are currently reviewing our longer-term strategy and how we can maximise
long-term value creation for our customers and shareholders. A key focus for
the Group is to ensure that we continue to prioritise operational excellence
across all areas of our business. Efficiency and productivity will be
important to achieve our goal of improving bottom line performance in addition
to top line revenue growth. Further updates will be furnished when
appropriate".

 

Notice of results for full year 2023 will be issued in due course and details
will be available on the Company website https://investors.datalex.com once
finalised.

 

ENDS

 

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)

 

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)

 

Disclaimer

 

This announcement contains forward-looking statements. These statements relate
to the future prospects, developments and business strategies of Datalex.
Forward-looking statements are identified by the use of such terms as
"believe", "could", "envisage", "estimate", "potential", "intend", "may",
"plan", "will" or variations or similar expressions, or the negative thereof.
Any forward-looking statements contained in this announcement are based on
current expectations and are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or implied by
those statements. If one or more of these risks or uncertainties materialise,
or if underlying assumptions prove incorrect, Datalex's actual results may
vary materially from those expected, estimated or projected. Any
forward-looking statements speak only as at the date of this announcement.
Except as required by law, Datalex undertakes no obligation to publicly
release any update or revisions to any forward-looking statements contained in
this announcement to reflect any change in events, conditions or circumstances
on which any such statements are based after the time they are made.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ISEGZGMFRLZGDZM