Datalex has confirmed that its long-term strategy is currently being reassessed by its new CEO. The travel retail software firm’s expected revenue for 2023 has increased by 23% to reach $28.9 million (€26.6m), an upgrade from the previously predicted growth of 15% for the previous year, thanks to a boost from post-pandemic travel rebound.
Based on a recent trading update, Datalex anticipates reporting a pre-tax, interest, depreciation and amortisation loss of $2.9 million for the previous year, a rise from the 2022 losses of $5.3 million. Also, it stated that Datalex saw profits as passenger traffic volumes increased and airlines kept investing in ecommerce technology, making 2023 “a year of change for the global aviation industry”.
The firm mentioned that “the group began 2024 with a robust recurring revenue base and a strong growth pipeline that will be tapped as new customers come on board”. As major contracts were renewed in 2023 with key existing customers like JetBlue, Air China, Air Transat and Aer Lingus, and new contracts signed with LatAm Airlines and Air Macau, the company expects an increase in platform revenue, which is likely to be most evident from 2025.
Datalex, now run by Jonathan Rockett since November, also expressed that a major part of the company’s focus is to ensure continual operational excellence alongside efficiency and productivity to enhance bottom line performance alongside top line revenue growth, keeping in line with their plans to enhance long-term value generation for shareholders and customers.
At the end of the previous year, the firm reported a cash balance of $5.8 million, dropping from $6.5 million in December 2022. Furthermore, as of September, Datalex owed €13 million to its principal shareholder, Dermot Desmond’s Tireragh vehicle and was considering alternative funding sources to refinance these high-interest ones – carrying a rate of 18 per cent – before their maturity in December. Despite considering an equity raise the previous year, the company decided to postpone due to its lowered share price.
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