Fonix Mobile plc (LON:FNX), the mobile payments and messaging provider, has provided an update on trading for the year ended 30 June 2024.
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 Mobile’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, Fonix Mobile 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.
