Datalex wins deal with easyJet as it reports half-year losses

Irish software developer Datalex has struck a deal with easyJet to boost the low-cost airline’s online sales.

Chief Executive Sean Corkery said the signing is a “significant milestone” for the group as the low-cost segment is the fastest growing segment of the airline market.

It follows the addition of Virgin Australia as a customer earlier this year.

The Dublin-based company, which specializes in digital retail software for airlines, reported a 17 percent fall in total revenue for the first half as total losses mounted.

The drop in sales is largely due to China’s zero-Covid strategy, in which near-total lockdowns have kept passengers grounded, the company said on Friday.

Total revenue for the six-month period ended June was $10.4 million, compared to $12.6 million for the same period in 2021.

Platform revenue declined 21 percent year-on-year to $5.9 million.

Total cost of ownership before exceptional items increased 13% to $13.8 million.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reported a loss of $2.1 million for the first half, compared to a profit of $1.8 million a year earlier.

Losses after tax declined slightly to $3.1 million for the first six months of the year, compared to $3.9 million for the same period in 2021.

“Despite lower than expected levels of activity in certain areas in the first half of 2022, I believe significant progress has been made in 2022 so far,” said CEO Sean Corkery.

“Looking ahead, I expect the positive momentum in sales activity to continue in the first eight months of 2022.

“However, as outlined in the guidance released today, it will take time for this progress to be reflected in our financial performance.

“We remain confident that our business can grow in the medium to long term.”

In its results, Datalex assumes that the Chinese market will recover in the second half of the year.

It expects full-year revenue of $25-$27 million with Adjusted EBITDA expected to show a loss of between $3-$4.5 million.

Datalex said it will require refinancing or alternative financing to repay a €10 million loan and meet its working capital needs in 2023 and beyond.

https://www.independent.ie/business/irish/datalex-wins-contract-with-easyjet-as-it-reports-half-year-losses-41955512.html Datalex wins deal with easyJet as it reports half-year losses

Fry Electronics Team

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