TIDMFNX
RNS Number : 5678G
Fonix Mobile PLC
20 July 2023
Fonix Mobile plc
("Fonix" or the "Company")
Full Year Trading Update
Strong trading momentum continues with significant growth in
international markets
Fonix Mobile plc, the mobile payments and messaging provider, is
pleased to provide an update on trading for the year ended 30 June
2023 (the "Year").
Financial highlights:
-- Revenue and profit have continued to grow and ended the Year
marginally ahead of market expectations.
-- Gross profit in the Year grew by 14.4% to GBP15.1m (FY22: GBP13.2m).
-- Adjusted EBITDA(1) in the Year grew by 12.6% to GBP11.6m (FY22: GBP10.3m).
-- Fonix continues to generate strong underlying cash flows and
intends to pay an increased final dividend in November 2023, in
line with the Company's progressive dividend policy to pay out at
least 75% of adjusted earnings per share.
Operating highlights:
-- Total payment volume ("TPV") of mobile payments was GBP268.1m
(FY22: GBP258.6m) in the Year, as the increase in payments from
commercial clients was offset by a 30% decline in charity related
TPV due to fewer and smaller campaigns.
-- Fonix's commercial business segments of payments and
messaging have each grown by at least 16% in the Year, in line with
expectations and the business retains a robust pipeline of
prospects going into the next financial year.
-- Fonix continues to maintain 100% retention of all significant customers. (2)
-- Engagement with a record 19m consumers in the Year, including
payment transactions with 16% of the adult population in the
Republic of Ireland within the first year of trading in the
region.(3)
-- Launch into Republic of Ireland - a third tier 1 media client
has recently launched services with Fonix in the Republic of
Ireland, on a multi-year contract, making Fonix a leading provider
of Interactive Services in the region.
The Board expects to report its audited final results for the
year ending 30 June 2023 on Thursday 21 September 2023.(4)
Outlook:
With high levels of repeating revenue, a strong run-rate
entering the new financial year, recent tier 1 wins in the UK and
Ireland as well as a growing pipeline of client prospects across
all sectors and markets, the Board continues to be confident in the
growth potential for Fonix going into FY24 and beyond.
Rob Weisz, CEO, commented:
"We are delighted to announce another year of strong profitable
growth. We started the financial year with an ambition to be a
market leader in a second territory within two years of launch and
have achieved that feat in the first year. In recent months, we
have announced significant new contract wins in both the UK and
Ireland, underpinning our growth expectations for the year ahead
and furthering our aspiration to be the world's leading provider of
interactive services.
As well as clear growth opportunities in our existing markets,
we now also have a proven template for success in international
markets, which we will look to replicate and announce as and when
other new territories are making a meaningful contribution to our
growth."
Notes:
All financials are based on unaudited figures.
(1) Adjusted EBITDA excludes share-based payment charges along
with depreciation, amortisation, interest and tax from the measure
of profit.
(2) Significant customers are those contributing to more than
one (1) percent of the company's gross profit in the Year or the 12
months previous.
(3) Engagement means a payment transaction received from or SMS
message delivered to an end consumer. The proportion of the adult
population transacting with the company is calculated as the number
of payment transactions with unique mobile numbers in the Republic
of Ireland (ROI) compared to the number of people aged 18 or over
in the ROI as per www.worldpopulationreview.com.
(4) All financial numbers contained within this announcement
remain subject to audit.
Enquiries
Fonix Mobile plc Tel: +44 20 8114 7000
Robert Weisz, CEO
Michael Foulkes, CFO
finnCap Ltd (Nomad and Broker) Tel: +44 20 7220 0500
Jonny Franklin-Adams / Seamus Fricker (Corporate Finance)
Alice Lane / Sunila de Silva (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, BT, Global Media, Comic
Relief and Children in Need to name a few.
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END
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