Irish software firm Datalex posts 2022 loss due to China shutdown
Irish -listed airline software specialist Datalex saw revenues fall 8pc last year as it dealt with extended Covid restrictions in the Chinese market.
After-tax losses for 2022 came in at $11.5m (€10.4m), more than twice the loss it incurred in 2021.
Datalex reported an adjusted loss in earnings before interest, tax, amortisation and depreciation (Ebitda) last year of $5.3m, from a positive result in 2021.
However, chief executive Sean Corkery said the first three months of this year had seen a “material” increase in demand in China, with March transaction volumes reaching 42pc of pre-pandemic levels.
“While we started out 2022 optimistic that the global aviation industry would rebound quickly, international travel restrictions were slower to unwind,” Mr Corkery said.
“Unfortunately, these restrictions continued throughout 2022 in China, where much-anticipated recovery failed to materialise during the year.
“Thankfully, we are confident that this turbulent period is now firmly behind us and are encouraged by a material increase in demand we have observed in China and across our global customer base in the first three months of this year.”
Covid restrictions in China last year resulted in a 17pc decline in platform income compared with 2021, the group said in its annual report on Thursday.
Services revenues increased by 33pc on the previous year to $2.8m due to a combination of new customers and projects that recommenced post-Covid.
Total operating costs, excluding exceptional items, increased by 28pc to $35m last year, primarily due to the cost of onboarding new customers.
The group has added European low-cost carrier EasyJet as a customer in the last year and renewed contracts with JetBlue, Air China and Air Transat.
The group’s cash balance at the end of last year was $6.5m, down from $8.3m at the end of 2021.
Datalex will hold its annual general meeting on June 22 in Dublin, it announced.