Fonix plc
("Fonix"
or the "Company")
Trading Update and Special
Dividend
Portuguese strategic
commercial partnership and special dividend
Fonix plc, the mobile payments and
messaging provider, is pleased to provide an update on trading for
the 6 months ended 31 December 2024 (the "Period").
Financial highlights:
● Gross
profit and adjusted EBITDA1 in H1 FY25 have grown in
line with management's expectations.
● Gross
profit in the Period grew by 6.5% to £9.8m (H1 FY24:
£9.2m).
● Adjusted
EBITDA1 in the Period grew by 6.8% to £7.8m (H1 FY24:
£7.3m).
● Fonix
intends to pay an increased interim dividend in March 2025, in line
with the Company's progressive dividend policy to pay out at least
75% of adjusted earnings per share.
Special dividend
● In
addition to the interim dividend, Fonix Plc is pleased to announce
the declaration of a special dividend, reflecting the Company's
continued robust financial performance and strong cash generation.
The Board has approved a payment of 3.0p per share, which will be
paid on 12 February 2025 to those shareholders who are on the
register at the close of business on 31 January 2025 (record date),
with a corresponding ex-dividend date of 30 January 2025. This
special dividend underscores our continued confidence in our
business model and our ability to generate sustainable returns for
stakeholders while maintaining a disciplined approach to capital
allocation.
Operating highlights:
● Contracts
in place with all major mobile network operators in Portugal,
marking a significant milestone in expanding our international
reach. Additionally, the Company has entered into a strategic
commercial partnership with NOS, one of Portugal's leading
telecommunications providers. This collaboration strengthens the
business' position in the market and will enable it to deliver its
Campaign Manager product to NOS' numerous existing broadcast
customers.
● The
Company has recently launched interactive services with News UK, a
prominent multinational media organisation, across its talkSPORT
and Virgin Radio brands in the UK.
● The
business continues to grow its product portfolio with the recent
launch of two innovative solutions, unlocking new revenue
opportunities from existing customers:
○
PayFlex: A cutting-edge
tool that streamlines the recovery of failed mobile payments by
integrating Apple Pay, Google Pay, and PayPal.
○
DonationPortal: A
tailor-made solution for charities, featuring custom-branded
donation pages, effortless Gift Aid processing, and real-time
analytics to boost donor engagement and simplify the giving
process.
● The
business continues to accelerate its investment in organic
international expansion, and is in early discussions with a number
of mobile network operators and prospective broadcaster customers
across several new European markets, which the management team
believe has the potential to provide significant growth
opportunities in the years ahead.
● Michael
Foulkes has recently been appointed CFOO (Chief Financial &
Operating Officer) of Fonix. This has been a natural evolution of
his role within the Company, and is required now due to the
acceleration of our international expansion goals at the same time
as the broadening of our product portfolio. Michael will have Board
responsibility for product development and delivery.
● Total
payment volume ("TPV") of mobile payments in the Period was £150m
(H1 FY24: £158m) due to fewer charity customer campaigns, a
reduction in some very low margin voice telephony services and the
discontinuation of some gambling customers who have exited the UK
market.
● 100%
platform uptime throughout the Period.
● Fonix's
key business segments of payments and messaging have both grown in
the Period and the business retains a growing pipeline of client
prospects going into H2 FY25.2
Outlook:
With high levels of existing
recurring income, recent new customer wins, and advanced
partnership opportunities in Portugal, the Board anticipates a
stronger H2 weighting than usual and remains confident in meeting
management expectations for FY25. Additionally, with the business's
expanding product suite and clear growth opportunities in several
other European markets, the Board remains very confident in Fonix's
long-term growth potential.
Rob
Weisz, CEO, commented:
"We are delighted to have once again
delivered strong progress on our growth strategy. In Portugal, we
have now secured contracts with all mobile network operators and a
strategic partnership with a leading telecommunications provider,
unlocking immediate opportunities to deliver Campaign Manager and
our other interactive services to their significant base of TV and
radio customers.
At the same time, we continue to
make good progress on exploring new opportunities in other European
markets and advancing innovations on our product roadmap, which we
expect to drive revenue growth from FY26 onwards. These
achievements position us well for long-term success."
Notes:
All
financials based on unaudited figures.
1 Adjusted EBITDA excludes
share-based payment charges along with depreciation, amortisation,
interest, research and development tax credits and tax from the
measure of profit.
2 All financial numbers
contained within this announcement are unaudited.
Enquiries
Fonix plc
Tel: +44 20 8114
7007
Robert Weisz, CEO
Michael Foulkes, CFO
Cavendish Capital Markets Limited (Nomad and
Broker)
Tel: +44 20 7220 0500
Jonny Franklin-Adams / Seamus Fricker
/ Hamish Waller (Corporate Finance)
Sunila de Silva/ Harriet Ward
(ECM)
The information contained within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse Regulations (EU No. 596/2014)
which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
About Fonix
Founded in 2006, Fonix provides
mobile payments and messaging services for clients across media,
telecoms, entertainment, enterprise and commerce.
When consumers make payments, they
are charged to their mobile phone bill. This service can be used
for ticketing, content, cash deposits and donations. Fonix's
service works by charging digital payments to the mobile phone
bill, either via carrier billing or SMS billing. Fonix also offers
messaging solutions.
Based in London, Fonix is a fast
growth business driven by blue chip clients such as ITV, Bauer
Media, RTÉ, Global Media, Comic Relief and BBC Children in Need to
name a few.