Airline e-commerce platform Datalex has reported higher revenues and gross profits for 2023 after it agreed a number of long-term renewals with its existing customers.
Revenues for the year to the end of December rose by 23% to $28.9m from £23.5m, while the company's gross profits jumped by 52% to $9.7m from $6.4m for 2022.
Datalex said its loss after tax for the group came to $9m, an improvement of $2.5m on the 2022 loss after tax.
Jonathan Rockett, Datalex's chief executive, said it was hugely positive that the group has continued to sign new customers over the past 18 months.
"It is a validation of the solution that Datalex provides to the airline market and also proof of Datalex's ability to win in its market," the CEO said.
"The renewals of key customer accounts in 2023 not only increased Datalex's recurring revenue base for the medium term, but also enabled the group to move its customers to the group's streamlined revenue model," the CEO said.
Mr Rocket said he had been really encouraged by the level of passion and commitment he had seen across the business since he joined in November 2023.
"The Datalex team is focused on delivering value to its customers. This is a significant strength, as 2024 will be another year where we remain focused on delivering activation and transformation projects for our customers," he said.
"These projects will be another stepping stone for our turnaround leading to sustainable and long-term growth," he added.
As part of contract renewals agreed during the year, Datalex said that Aer Lingus, Edelweiss and Air China will be migrating to its newest platform products.
"These renewals, along with the related investment by these airlines to migrate to Datalex's latest product suite, are not only a testament to the value of our long-standing partnerships with customers, but also a vote of confidence in where Datalex is bringing its products over the next three to five years," it said.
The company also said that Air Transat signed a new deal which includes a continuation of their existing product solutions, while Datalex will continue to provide further capability to them over the partnership to enable the airline to achieve their growth strategy and retailing ambitions.
JetBlue also extended its partnership with Datalex for the maintenance of existing services.
Datalex said the activation project with EasyJet continues to progress well, with EasyJet going live with Datalex Merchandiser in December 2023, with further activations planned for this year.
But Virgin Australia changed priorities with respect to its internal Next Generation Retail programme, impacting Datalex and several other vendors.
Also during the year, SAS filed for chapter 11 bankruptcy in the US, resulting in them not proceeding with their Datalex deal.
The company last year also signed an agreement with LATAM Airlines, but said today that although the project achieved its primary endpoints in June 2024, the deal will not proceed any further.
During 2023, Datalex secured an additional loan facility of €5m from Tireragh Limited, which increased the total loan facility to €15m with a repayment date of 31 December 2024.
At 31 December 2023, the group had drawn down €13m from the Tireragh Limited loan facility.
Dalalex said today that its board has the support of Dermot Desmond, the group's largest ultimate beneficial shareholder, who has confirmed to it that he will procure support for the planned equity fundraising.
Tireragh Limited has also informed the Group that, in the event that Datalex does not complete its planned equity fundraising, and subject to terms and conditions to be agreed, it will extend the termination date of the existing Tireragh Limited loan facility from 31 December 2024 to 1 July 2025.
It will also provide a new loan facility in the amount of €10m, if required, increasing the total facility to €25m.
