Travel software firm Datalex has reported a 5% fall in revenue for the first six months of the year with revenue coming in at $12.6m.
Datalex said the revenue decline was in line with its expectations and was due to the continuing impact of Covid-19 on the airline industry and the further impact of the Delta variant in 2021.
It said that platform revenues remained relatively stable during the period, adding that its customers continued to prioritise and honour its commercial terms.
The company said its operating costs were down by a fifth to just over $12m which included a supplier discount of $1.5m.
Its adjusted EBITDA of $1.8m marked an increase of $3.1m on the same time last year when it reported a loss of $1.3m.
No new customers were added during the first half of 2021, but Datalex said that in the second quarter of the period it experienced a considerable increase in activity with prospective customers.
"We exit the period with a healthy pipeline of opportunities to develop in the second half of 2021," it added.
Datalex's customers include Aer Lingus, Jet Blue, Swiss, Philippine Airlines, West Air, SAS and Air Malta.
In light of continued market uncertainty, Datalex said today it believes it is prudent not to provide specific guidance at this time.
Datalex's chief executive Sean Corkery said the recovery from the impact of Covid-19 on the airline industry will take time and airlines continue to operate in a Covid-centric backdrop which has caused them to delay and extend IT and digital investment decisions.
"However, we have experienced a considerable increase in sales pipeline activity in the second quarter of 2021, as airlines began to reconsider investment in their retailing technology as part of their recovery strategies," Mr Corkery said.
Sean Corkery said the company had recently contracted with a current customer for the latest version of its NDC product and for them to participate in a Dynamic Pricing production trial.
"We also contracted with a Tier 1 airline to complete a Dynamic Pricing production trial which commenced during the first half of 2021," he added.
He said the company also strengthened its balance sheet by completing a capital raise of €25m in July.
This allowed the group to repay its existing debt facility and enables acceleration of investment in its product roadmap and provides sufficient working capital to implement new revenue opportunities.
Meanwhile, Datalex also announced today that its chief financial officer Niall O'Sullivan will retire from the company at the end of December.
Sean Corkery said that during his two years with Datalex, Mr O'Sullivan has been instrumental in providing financial leadership through a period of significant change and transformation at the company.
Datalex said it has started a search for a replacement CFO and will update the market in due course.