LONDON (ShareCast) - (Sharecast News) - Mobile payments and messaging technology provider Fonix Mobile reported a strong full-year financial performance in a trading update on Monday.
The AIM-traded company said it exceeded market expectations, with an 18.5% increase in gross profit to £17.9m, compared to £15.1m in the prior year.

Adjusted EBITDA also saw an 18.1% rise, amounting to £13.7m, from £11.6m in 2023.

Fonix said it continued to generate strong cash flows, and planned to increase its final dividend in November, adhering to its policy of paying out at least 75% of adjusted earnings per share.

The board said it was also considering options for returning surplus cash to shareholders following its April share buy-back.

Operationally, Fonix processed £302.4m in total payment volume (TPV), a 12.8% increase from the prior year.

The company expanded its services to include Apple Pay, Google Pay, PayPal, and bank card transactions, supporting a broader business strategy and online payment portals.

Fonix noted that it was selected as the voting partner for Eurovision 2024 in the UK and the Republic of Ireland.

The company's commercial segments of payments and messaging each grew by at least 16%, maintaining a robust pipeline of prospects for the next financial year.

International markets contributed around 12% to gross profits, with high client retention and engagement reaching a record 23 million consumers.

The company said it was also collaborating on the proposed Irish Gambling Regulation Bill, although legislative changes were not expected before the end of the 2025 financial year due to delays and the potential for a general election in the Republic of Ireland in 2024.

Fonix said it would announce its audited final results for the year on 24 September.

Looking ahead, the board said it was confident in the company's growth potential for 2025 and beyond, supported by recurring revenue, an expanded commercial offering, and opportunities for further international expansion.

"We are pleased to announce another year of robust profitable growth across our core markets and segments," said chief executive officer Rob Weisz.

"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, Weisz said the company was making steady progress on its plans to enter a new territory in mainland Europe, with several TV and radio broadcasters lined up to trial services once it launches in the region.

"We are optimistic about starting to transact in this new market during the 2025 financial year, and we hope to be able to give further details at the full results in September."

At 0911 BST, shares in Fonix Mobile were up 7.59% at 261.99p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE