Fonix Mobile
plc
("Fonix"
or the "Company")
Full Year Trading Update and
Notice of Results
Strong trading momentum
continues with significant growth in key markets and an expanded
commercial offering
Fonix Mobile plc, the mobile payments
and messaging provider, is pleased to provide an update on trading
for the year ended 30 June 2024 (the "Year").
Financial highlights:
● Gross profit and earnings
have continued to grow strongly and ended the Year ahead of market
expectations.
● Gross profit in the Year grew
by 18.5% to £17.9m (FY23: £15.1m).
● Adjusted EBITDA1
in the Year grew by 18.1% to £13.7m (FY23: £11.6m).
● Fonix continues to generate
strong underlying cash flows and intends to pay an increased final
dividend in November 2024, in line with the Company's progressive
dividend policy to pay out at least 75% of adjusted earnings per
share.
● The board continues to review
options for the return of surplus cash to shareholders following
the share buy-back in April 2024.
Operating highlights:
● The total payment volume
("TPV") of mobile payments processed in the Year grew by 12.8% to
£302.4m (FY23: £268.1m).
● In addition, for the first
time, the Company facilitated payment transactions via Apple Pay,
Google Pay, PayPal and bank card as part of an expanded business
strategy including the development of online payment
portals.
● Selected to support
Eurovision as voting partner for the first time, managing voting
for Eurovision 2024 across two territories - the UK and Republic of
Ireland.
● Fonix's commercial business
segments of payments and messaging have each grown by at least 16%
in the Year, in line with expectations. The business maintains a
robust pipeline of prospects going into the next financial
year.
● Overseas markets represented approximately 12% of gross profits
for the year.
● Fonix
continues to maintain high client retention.
● Engagement with a record 23m
(FY23: 19m) consumers in the Year.2
● The business continues to
work with clients and partners on the proposed Irish Gambling
Regulation Bill, which is now at the Committee Stage in the Seanad
Éireann. Due to the ongoing delays in the legislative process and
the expectation of a 2024 general election in the Republic of
Ireland, the collective view is that any legislative changes are
unlikely to be finalised before the end of FY25.
The Board expects to report its
audited final results for the year ending 30 June 2024 on Tuesday
24 September 2024.3
Outlook:
The Board remains confident in
Fonix's growth potential for FY25 and beyond, supported by high
levels of recurring revenue with a strong run-rate, an expanded
commercial offering, and significant opportunities for further
international expansion.
Rob
Weisz, CEO, commented:
"We are pleased to announce another
year of robust profitable growth across our core markets and
segments. We have continued to see strong underlying growth from
our long-standing customers, alongside new income streams from
recent client wins such as ITV and RTÉ, and new adjacent product
offerings including live broadcast voting and online payment
portals. Our expanded client base and product suite has not only
generated new income sources but also enhanced our credibility and
competitive edge in the market.
Looking ahead, we are making steady
progress on our plans to enter a new territory in mainland Europe,
with several TV and radio broadcasters lined up to trial services
once we launch in the region. We are optimistic about starting to
transact in this new market during FY25 and we hope to be able to
give further details at the full results in September."
Notes:
All
financials are based on unaudited figures.
1 Adjusted EBITDA excludes
share-based payment charges along with depreciation, amortisation,
interest, R&D tax credits and tax from the measure of
profit.
2 Engagement means a payment
transaction received from or SMS message delivered to a unique
mobile number.
3 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
Cavendish Capital Markets Limited (Nomad and
Broker) Tel: +44 20 7220 0500
Jonny Franklin-Adams / Seamus Fricker
(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.