Datalex revenue boosted as airline recovery starts to stick landing

Datalex PLC on Friday said revenue increased substantially in its latest half year with ‘robust growth in passenger traffic’ and it is confident in achieving its full-year guidance.

The Dublin-based software company, which specialises in digital retail technology for the airline market, said revenue increased 24% in the first half of 2023 to $12.9 million from $10.4 million.

Services revenue increased 61% to $6.1 million from $3.8 million, and Platform revenue increased 6.8% to $6.3 million from $5.9 million.

However, Datalex also said its adjusted loss before interest, tax, depreciation and amortisation widened to $3.1 million from $2.1 million the year before.

Cost of sales increased 26% to an unspecified amount, although Datalex said this was mainly due to ‘an uptick in customer activations’. Total operating costs before exceptions items increased 30% to $18 million from $13.8 million.

Datalex said contracts with four key airline partners were successfully renewed during the period. It also noted the addition of Chile-based airline LATAM Airlines, which it said is Latin America’s largest airline, to its customer base in May.

‘I am satisfied that we are now seeing the benefits of airline recovery matched with our new transaction-based [software as a service] contracts allowing for closer industry correlation,’ Chief Executive Officer Sean Corkery said.

‘In addition, we are executing well and investing in activation of new customers which will fuel additional transactions in 2024.’

Datalex said ‘robust growth in passenger traffic’ was achieved across all regions, ‘marking substantial strides toward the restoration of pre-pandemic travel volumes’. Consequently, the company remains confident it will achieve around 15% revenue growth for 2023 as announced in May.

Datalex shares were untraded at 0.55 pence in London on Friday.

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