REG - Fonix PLC - Trading Update and Notice of Results

FonixAnnouncement

Tue 07:00

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RNS Number : 9503R  Fonix PLC  22 July 2025

Fonix plc

("Fonix" or the "Company")

Full Year Trading Update and Notice of Results

Steady growth in the UK and Ireland while accelerating product and European
expansion

Fonix plc, the mobile payments and messaging provider, is pleased to provide
an update on trading for the year ended 30 June 2025 (the "Year").

 

Financial highlights:

●     Gross profit for the Year increased by 3.9% to £18.6m (FY24:
£17.9m).

●     Adjusted EBITDA(1) grew by 6.6% to £14.6m (FY24: £13.7m). Costs
include £0.2m of exceptional legal and consultancy costs associated with
preparations for future international expansion, which have not been added
back.

●     Fonix continues to generate strong underlying cash flows and
intends to pay an increased final dividend in November 2025, in line with the
Company's progressive dividend policy to pay out at least 75% of adjusted
earnings per share.

 

Business review:

FY25 was a year of strategic execution, with Fonix delivering gross profit and
earnings growth in line with expectations while laying firm foundations for
future expansion. We maintained our leading position in the UK market,
securing new wins with GB News and News UK, whilst experiencing continued
growth across both the UK and Ireland.

Growth was more measured than in recent years, reflecting resilient revenues
from our largest clients and evolving competition formats. Demand for new
products - including PayFlex, CompsPortal, and RCS - has been strong in the
latest quarter, with clear traction among existing and prospective customers.
These offerings are expected to drive meaningful new revenue streams from
FY26.

Internationally, engagement has been high across all target markets, where
incumbent providers are failing to meet the needs of broadcasters. Fonix's
proven platform and agile approach are resonating strongly, creating a
significant runway for expansion, as detailed below.

TPV declined to £281 million (FY24: £303 million), largely due to reduced
charity campaigns, and the planned exit of some low-margin services. These
changes had limited impact on gross profit, reflecting our focus on
sustainable, higher-margin revenue.

All Irish customers continue to trade as normal following the Gambling
Regulation Bill's approval. Implementation will take time, and no immediate
service risk is anticipated. We do not expect to provide further updates
unless the regulatory position changes materially.

 

Future growth strategy:

Fonix is entering FY26 with strong momentum and multiple growth levers across
products and markets.

●     Geographic expansion is underway, with:

○     A full commercial launch in Portugal expected in September,
following a successful June pilot campaign.

○     Overseas entities being established in two additional European
countries, with broadcaster and carrier engagement already underway.

○     Plans to enter a third new market, creating a diversified European
presence and reducing reliance on the UK.

The new European territories have a less mature broadcast market than the UK,
and Fonix's offering is expected to grow the market opportunity with strong
pricing power and supports exciting long term growth ambitions.

●     New product launches are central to Fonix's growth strategy,
significantly expanding our addressable market, strengthening customer
relationships, and positioning us as a clear market leader in mobile
interactivity and payments:

○     PayFlex enables seamless online payments - including Apple Pay,
Google Pay and card payments - directly within message-based environments such
as SMS and RCS. While failed SMS payment recovery is one use case, its broader
value lies in powering fast, frictionless transactions across multiple
channels. Already live with two major UK broadcasters, PayFlex is gaining
strong traction and opening up new, more flexible ways for consumers to pay.

○     CompsPortal, a newly developed self-serve competition platform,
empowers brands to run high-performance online campaigns with integrated
payments and full admin control. It also unifies winner management and entry
data across SMS, PayFlex, RCS, and online - with the first customer launch
expected in September 2025 and more to follow.

○     RCS (Rich Communication Services) will launch in FY26, enabling
interactive, branded messaging and seamless multi-payment journeys -
delivering richer engagement and higher conversion rates. When combined with
the flexibility of PayFlex, RCS unlocks access to a significantly broader
market of more complex, higher-value transactions, both within our existing
client base and across new sectors and use cases.

Together, these developments mark a significant step in expanding beyond SMS,
enabling multi-channel consumer interaction, seamless payment flows, and
richer user engagement - ultimately driving higher transaction volumes and
customer lifetime value.

 

The Board expects to report its audited final results for the year ending 30
June 2025 on Tuesday 23 September 2025.(3)

 

Outlook:

Fonix enters FY26 with a much broader product offering, and a strengthened
platform to  expand internationally. As ever, Fonix is reliant on its
partners in terms of timing and efficacy of new revenue streams and we
continue to take a cautious, sustainable approach to our growth expectations.
With launches planned in multiple new markets, the rollout of PayFlex and
CompsPortal, and the upcoming launch of RCS, the Company is well positioned to
deliver continued revenue growth and further diversification of its customer
base. The Board remains confident in the long-term prospects for the business
and expects the growth initiatives implemented in FY25 to support sustained,
profitable growth in the years ahead.

 

Rob Weisz, CEO, commented:

"FY25 has been a pivotal year for Fonix. While headline gross profit growth
was steadier than in recent periods, this was a year of exciting progress
behind the scenes - laying the foundations for the next phase of scalable
growth. We've launched new, game-changing products, entered new markets, and
deepened our client relationships across multiple sectors.

As we move into FY26, we're confident that the investments made in FY25 will
begin to bear fruit, supporting stronger growth, greater diversification, and
sustained value creation for our shareholders."

 

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  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)

 

About Fonix

Founded in 2006, Fonix is a leading provider of mobile payments and messaging
solutions, enabling businesses to connect, engage, and transact seamlessly
through mobile technology.

Fonix helps organisations across media, charity, entertainment, and enterprise
sectors drive revenue and enhance audience engagement.

Headquartered in London, Fonix is a fast-growing, innovation-driven company,
trusted by industry leaders such as ITV, Bauer Media, RTÉ, Global, Comic
Relief, and BBC Children in Need. With a strong focus on technology and
consumer experience, Fonix continues to shape the future of mobile payments
and interactivity.

 

 

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