Irish-listed airline software specialist Datalex has reported a loss after tax of $6.1m (€5.5m) in the first half of 2024, a slight improvement from the same time last year.

The group, which helps airlines to streamline retail offerings to passengers, also reported an Ebitda (earnings before interest, taxes, depreciation, and amortisation) loss of $2m (€1.8m).

This was a 37pc improvement from the first half of 2023, with Datalex attributing this to gross profit growth and positive foreign exchange gains.

The company recorded total revenue of $13.2m (€11.8m) in the first half of the year, up 3pc compared to the same period in 2023.

Platform revenue increased 14pc to $7.3m following product activations with new customers.

Services revenue fell 11pc to $5.5m as contracts from Scandinavian Airlines and Virgin Australia ended. These contracts represented $3.5m of total revenue and the loss of this recurring revenue is expected to impact year-on-year growth.

The company reported that easyJet has gone live with additional capability in recent months, while Datalex also commenced the activation of its shopping and pricing capability for Air Macau.

Aer Lingus, Edelweiss and Air China have also migrated to the group’s new platform products.

Datalex also announced plans to complete a capital raise to raise around €25m.

Funds raised will be used to repay the entire debt owed to Tireragh, a company controlled by billionaire Dermot Desmond.

Datalex added that the planned fundraising could also provide sufficient working capital for investment in the group’s product roadmap and activation projects, while it also continues to compete for new revenue opportunities.

Datalex secured a loan facility of €5m last year from Tireragh.

This brings its total loan facility to €15m with a repayment date set for the end of this year, according to annual results published earlier this year.

Around €13m has been drawn down so far.

Datalex reported in June that it is working with advisers on planned equity funding to pay back this loan facility, announcing plans for equity fundraising a month later.

The move is supported by Mr Desmond, who owns just over 40pc of the stock market-listed software firm. Mr Desmond has told the group that he will procure support for the planned fundraising.

If Datalex does not complete this fundraising, Mr Desmond’s Tireragh vehicle has confirmed that it will extend the termination date of the loan facility to the beginning of July next year and will provide a new loan of €10m if needed.

“In H1, we have continued to invest in migrating some of our customers to this new platform, activated further capability for easyJet, and commenced the activation of our shopping and pricing capability for Air Macau, who will go-live in Q3 of this year,” chief executive Jonathan Rockett said.

“When I look at 2024 as a full year, the year on year revenue growth will be held back by some non-recurring revenue from 2023. However, we expect to see several positive steps that will start to come to fruition in the year but will be more evident in 2025.” he added.

Reporting on:independent.ie