REG - Fonix Mobile PLC - Trading Update

FonixAnnouncement

20/07/2023 07:00

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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 £15.1m (FY22: £13.2m).

●    Adjusted EBITDA(1) in the Year grew by 12.6% to £11.6m (FY22:
£10.3m).

●    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 £268.1m (FY22:
£258.6m) 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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