Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Fonix hikes expectations after strong first half

(Sharecast News) - Mobile payments and messaging technology company Fonix Mobile reported a strong financial and operational performance in a trading update on Wednesday, surpassing management's expectations for the first half. The AIM-traded firm said it achieved a 17.9% increase in gross profit for the six months ended 31 December, reaching £9.2m.

Adjusted EBITDA also showed robust growth, rising 17.7% to £7.3m, and as a result, the board now expected adjusted EBITDA for the full year ending 30 June to slightly exceed initial expectations.

Fonix Mobile said it continued to generate strong underlying cash flows in the period, with it set to increase its interim dividend payout in March, aligning with its progressive dividend policy which aims to distribute at least 75% of adjusted earnings per share.

In terms of operating highlights, Fonix Mobile achieved 15.3% growth in total payment volume (TPV) for mobile payments during the reporting period, reaching £158m.

Notably, December marked a record month for commercial trading in both the UK and international markets.

Fonix said it maintained a 100% platform uptime throughout the period, even while supporting record levels of transactions and consumer engagement.

Additionally, the company introduced its new subscription manager product, setting the stage for major charity events scheduled for 2024.

Its operations in the Republic of Ireland saw significant gross profit growth, with Fonix strengthening its relationships with key clients and mobile network operators.

The company said it played a central role in facilitating discussions between stakeholders regarding the proposed new Gambling Regulation Bill, which could impact interactive services operated by Fonix's clients.

Both of Fonix Mobile's key business segments - payments and messaging - saw growth during the period, with the firm reporting a growing pipeline of client prospects as it entered the second half.

Looking ahead, Fonix said it was well-positioned for continued growth.

"We are delighted to have once again delivered on our strategic goals, with our key commercial segments achieving solid year-on-year growth in income and profitability," said chief executive officer Rob Weisz.

"In the first half of the year we have benefited from a 'true up' in trading following HM The Queen's death in the prior year, but the underlying growth rate remains strong in both the UK and Ireland.

"The business continues to make good progress on further international expansion and we hope to make announcements relating to this later in the year."

At 1256 GMT, shares in Fonix Mobile were up 8.14% at 232.5p.

Reporting by Josh White for Sharecast.com.

Share this article

Related Sharecast Articles

Billionaire Issa nearing deal to sell Asda stake to TDR Capital - report
(Sharecast News) - US private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
Billionaire Issa nearing deal to sell Asda stake to TDR Capital
(Sharecast News) - Private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
DS Smith tumbles as Mondi abandons pursuit
(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper.
Eqtec agrees amendment to Verde subscription
(Sharecast News) - Waste-to-energy technology developer Eqtec updated the market on the Verde Corporation subscription on Friday, confirming that an amendment to the subscription letter had been agreed upon with Verde.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.